stkETH & Ethereum 2.0: pSTAKE’s Next Leap Forward

pSTAKE continues to move closer toward our stkETH Ethereum 2.0 liquid staking implementation. Today, we’re breaking down what’s in store for Ethereum 2.0, details around stkETH, and an analysis of the stkETH testnet (currently live).
pSTAKE ETH Liquid Staking

The highly-anticipated Ethereum 2.0 upgrade, which will see the network switch from a PoW (Proof of Work) to PoS (Proof of Stake) consensus mechanism, lies just on the horizon. Just last month in March, the Ethereum Foundation announced plans for this transition to take place sometime in Q3 2022(tentative), shifting the timeline from an originally communicated Q2 2022.

pSTAKE recently revealed its upcoming implementation of Ethereum 2.0 liquid staking, which will provide users with liquid staking opportunities derived from ETH to broaden the scope of potential DeFi (Decentralized Finance) activities.

Find out more about what this means for the space and how pSTAKE is moving forward implementing ETH liquid staking.

Ethereum 2.0: Why it Matters

The transition from Ethereum 1.0 to 2.0 (otherwise known as “The Merge”) is expected to have a major impact on the entire cryptocurrency space, bringing more scalability and efficiency to the largest smart contract platform by market cap.

The move to PoS consensus is now setting the stage for the next phase in Ethereum’s life cycle. Greater scalability, security, and efficiency are anticipated to result from the upgrade, all of which are poised to encourage further utility and drive the adoption of not only the Ethereum network and ETH but also ETH liquid staking.

In terms of plans and timing, the Ethereum Foundation is taking a three-pronged approach:

  • The Merge (Beacon Chain x Mainnet): This is where the Beacon chain (currently live) will merge with the Ethereum mainnet, set to take place in Q3 2022 to officially transition the network to PoS.
  • Sharding: Adding shard chains will divide verification tasks across different nodes, enabling parallel processing for transactions and, as a direct effect, improving the network’s overall efficiency. This feature is anticipated to roll out in 2023.
  • eWASM: This is a web assembly language that will replace the current EVM (Ethereum Virtual Machine), making the entire coding process simpler and more accessible to developers.

stkETH: pSTAKE’s Next Venture

As previously noted, the next addition to pSTAKE’s liquid staking ecosystem will be stkETH, the liquid staked representation of ETH. This means that ETH holders will be able to stake their tokens via pSTAKE in order to earn staking rewards whilst being issued stkETH.

Once a user acquires stkETH in their wallet, these tokens can then be used to pursue other DeFi opportunities across the Ethereum ecosystem, such as Liquidity pools, borrowing-lending use cases, and much more.

Moreover, the emergence of stkETH gives ETH stakers an added benefit of instant access to liquidity and an enhancement of the native token’s utility.

This implementation will mark the achievement of the pSTAKE liquid staked asset trifecta: stkATOM, stkXPRT and soon to be stkETH. Our team is also currently developing and implementing other stkASSETs, such as stkSOL and stkAVAX, which are expected to be fully deployed in Q2 itself.

stkETH Testnet & Analysis

We recently deployed and have been continuously running a stkETH public testnet, allowing users and node operators to dive in headfirst and stress-test the network to ensure proper functionality prior to mainnet launch.

To participate, users are required to stake any non-zero amount of ETH on the pSTAKE stkETH testnet and mint stkETH.

Users can also become an LP (liquidity provider) on testnet by depositing liquidity into the stkETH/PSTAKE Uniswap pool. For more details on the process and the various user case scenarios for minting stkETH from ETH, please refer to our official user guide

The stkETH public testnet has garnered significant traction so far. Latest statistics:

  • ETH Deposited: 6,179
  • stkETH Minted: 6,175
  • # of Validators: 90
  • # of $PSTAKE Test Tokens Distributed: 650,120
  • Exchange Rate: 0.999409

The stkETH testnet is still live – if you are interested in testing out the platform, please navigate to the pSTAKE testnet app and follow the instructions here

We are almost ready to launch our mainnet and will share details surrounding this with the community.

About pSTAKE

pSTAKE is a liquid staking solution that unlocks the potential of staked PoS assets (e.g. ATOM). PoS token holders can stake their tokens via the pSTAKE application to receive stkASSETs (ERC-20 representative assets of the respective underlying tokens) that can then be transferred to other wallets or smart contracts on the Ethereum network to generate additional yield.

Currently, pSTAKE issues ERC-20 liquid staking representative tokens on the Ethereum network, with a long-term aim of building a multi-chain protocol issuing liquid staked representatives on multiple networks including the Persistence Core-1 chain.

We have a bag full of new features and an exciting roadmap for the coming months, so follow pSTAKE on Twitter and hop onto our Discord channel to stay up-to-date with the latest developments.

Developed by Persistence

Persistence is the liquid staking hub of the Proof of Stake economy. It facilitates issuance and deployment of liquid-staked stkASSETs, allowing users to earn staking rewards and also participate in DeFi activities. Persistence ecosystem products are designed to stimulate global liquidity and enable seamless value exchange.

Persistence’s Core mainnet is a Proof-of-Stake chain powered by Tendermint BFT consensus engine. Persistence’s multi-chain tech stack (currently supporting Cosmos, Ethereum, and other Tendermint-based chains) abstracts away the complexities for developers and enables them to create DEXs, marketplaces, lending/borrowing platforms, etc.

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