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What is pSTAKE Finance?

by BSC News

May 16, 2024

chain

pStake key features include the pBridge for value transfer across blockchains, and the PSTAKE token for governance and incentives.

In a major development for Bitcoin-native DeFi, pSTAKE Finance recently unveiled liquid staking for Bitcoin. Based on Babylon's Bitcoin staking protocol, this solution aims to simplify Bitcoin staking and provide new yield generation opportunities.

What is pStake? Let's find outโ€ฆ

What is pStake?

pSTAKE Finance, backed by Binance Labs, is a multi-chain liquid staking protocol designed to unlock the liquidity of staked assets. It aims to revolutionize the staking process by allowing users to stake their assets while maintaining liquidity.ย 

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Their approachย enables stakers of Proof-of-Stake (PoS) tokens to earn staking rewards and generate additional yield through decentralized finance (DeFi) applications.

How pSTAKE Works

Users who stake their PoS tokens with pSTAKE receive staked representative tokens (stkASSETs). These tokens can be used in DeFi to generate additional yield on top of staking rewards. The process is straightforward:

  • Staking PoS Tokens: Users deposit their PoS tokens into pSTAKE and receive ERC-20 tokens (pTOKENs) in return at a 1:1 ratio.

  • Using pTOKENs: These pTOKENs can then be used in various DeFi activities on Ethereum to earn additional profits.

  • Receiving stkASSETs: Users also receive stkASSETs, which represent their staked position and maintain liquidity. These stkASSETs can be used in DeFi applications for further yield generation.

Key Features of pSTAKE:

pBridge: The pSTAKE protocol uses a bridge called pBridge, which facilitates the transfer of value between blockchains such as Ethereum, Cosmos, BNB Chain, and Persistence. This bridge allows minting and burning tokens at a 1:1 ratio, staking and unstaking tokens, and claiming staking rewards.ย 

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Double Token Model: pSTAKEโ€™s dual token model simplifies staking and rewards. pTokens are minted at a 1:1 ratio with staked assets. These pTokens can be staked with pSTAKE to mint stkTokens, which can be used in the DeFi ecosystem for additional profits.

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Interchangeability: All stkTokens are interchangeable and represent staked assets across multiple validators. This distribution of stakes across validators mitigates hacking risks.

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PSTAKE Token: PSTAKE is the governance and incentive token of the pSTAKE protocol. It allows users to participate in governance activities and receive rewards. The total supply is set at 500 million, with 439 million currently in circulation. The tokens are distributed across community rewards, investors, and pre-token generation events (TGE).

pSTAKE Finance aims to be user-friendly, making liquid staking accessible to everyone. The protocol supports liquid staking on various networks, including Cosmos, Osmosis, and dYdX.ย 

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The protocol plans to expand support to more chains and assets in the future. In light of this, pSTAKE is now developing staking solutions based on Bitcoin, reflecting its conviction that bitcoin has the potential to generate yield.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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