pSTAKE’s strategic layout: market advantage in the multi-chain ecosystem

Author: Haotian, independent researcher Source: X, @ tmel0211

When the Ethereum Restaking track is in full swing, everyone will naturally think of the Ethereum POS application chain ecology based on  @pStakeFinance There should be a broader market space, right? After all, it is a staking solution for the entire POS application chain environment. Yes, in theory.

How do you view pSTAKE’s strategic position and potential market space? What exactly is pSTAKE’s business model? Next, let me explain my understanding in detail:

pSTAKE is for POS public chains including Ethereum, BNBChain, Cosmos, dYdX and other ecosystems Provide a liquidity staking service platform.

Specifically: users can directly deposit the native tokens of each chain into the pSTAKE platform, and the platform will pledge user assets to the node operator Validators and then obtain income. At the same time, the platform will mint stkASSET to users, which can be directly used for ecological circulation and generate additional income in some DeFi applications.

Since pSTAKE allows users to directly pledge the native assets of each chain to the corresponding POS Validators, corresponding adaptation work needs to be done for different chains, such as:< /p>

1. Cosmos chain. Users who pledge assets through pSTAKE can immediately obtain stkATOM tokens, and the assets will be pledged on the Cosmos chain in a safe and non-custodial manner. Due to the It takes 21 days for pledge redemption. pSTAKE can initiate a redemption request every 4 days. In the worst case, it takes 25 days for users to complete the redemption;

2. BNB Chain, users pledge BNB to pSTAKE, which will first be sent to the StakePool contract. At 23:00 UTC every day, the automatic program will superimpose all pledged assets and entrust them to the pSTAKE verifier. If the user wants to redeem BNB assets, they need to wait 15 days. Of course, Users can also choose to directly replace stkBNB with BNB to avoid waiting.

1) In terms of business model, pSTAKE is positioned as a liquidity staking management protocol. It needs to manage and adapt the staking characteristics of each POS chain and participate in the corresponding Native staking and redemption process, the newly minted stkASSETS during the entire process can be used for circulation at any time.

The core of its business is a liquidity management platform across multiple chains and multiple protocols, which connects and aggregates the liquidity of various POS chains into a unified management platform. Management and digestion in the platform without sacrificing the original liquidity.

In layman’s terms, pSTAKE is equivalent to building a liquidity sharing layer for the Cosmos application chain ecosystem, through which users can share the liquidity of each chain while also Obtain staking income without having to worry about the lock-up period, and successfully achieved "multiple benefits with one stone": staking to pSTAKE, 1. Obtaining POS chain staking income; 2. Without sacrificing liquidity during the lock-up period; 3. Having multi-chain circulation value .

2) pSTAKE is built based on the cross-chain interoperability of Cosmos IBC, and realizes the circulation of assets between various heterogeneous chains through the pBridge cross-chain bridge.

IBC cross-chain communication protocol is the technical foundation for Cosmos to build a huge application chain ecosystem. It can transmit any type of data or assets, so that heterogeneous chains can Communicate with each other to realize asset circulation;

pBridge is the key technology for pSTAKE to realize cross-chain communication. It is used to manage users' asset status updates in multiple chains and maintain a unified Ledger security.

The key is that the user's native assets on each POS chain are pledged on the original chain, and the status of the assets is managed and unlocked by smart contracts in the two-way pipeline.

3) The strategic position of pSTAKE is to build a public liquidity layer between multiple POS public chains. As a liquidity management and supply platform, pSTAKE can directly choose high-quality Validators nodes to cooperate with, and invest liquidity in whoever has more strength and security.

pSTAKE, as a unified accounting platform, needs to strictly screen Quilified nodes and be responsible for the flow of their assets, because once pSTAKE is placed on the POS public chain node If an asset is slashed, the entire pSTAKE liquidity platform must share and bear the losses.

Of course, this is actually a better choice for users. Choosing pSTAKE is equivalent to avoiding the possibility of losing assets to Slash. This is equivalent to another layer of protection for users facing complex multi-chain environments.

4) In theory, pSTAKE can serve a wider range of POS application chain ecosystems including BNBChain, dYdX, Ethereum, etc., and are generally based on Cosmos IBC All accessible chains are available. Once integrated, users can convert their pledged assets on either chain into the corresponding stkTOKEN.

However, it will not deliberately favor any application chain ecology, but will use the same set of standards to defeat each ecology one by one to superimpose the liquidity of its own public layer. . Only in this way can assets from various multi-chain environments enjoy the same improvement in asset liquidity, and pSTAKE can become a liquidity solution across multiple chains. If the liquidity of individual chains is too large, some weak-liquidity ecology will inevitably become weak points. Although it can serve a wide range of areas, a bowl of water must be balanced, otherwise there will be a potential liquidity imbalance crisis.

This is exactly why, although it can serve a wider POS chain ecology, pSTAKE tends to expand the market one by one among large chains such as BNB and ETH. In fact, This is what must be done.

In general, the re-staking track fever set off on Ethereum will have a positive impact on pSTAKE, which focuses on POS public chain liquidity protocol management. Long-term gain Buff effect, especially when the liquidity of Ethereum continues to penetrate out of the chain and the multi-chain environment becomes the focus.