Overview
The pSTAKE Incentive Program gives pSTAKE users holistic, forward-looking insights into PSTAKE incentives on various DeFi integrations across BNB Chain and Cosmos (Ethereum Ecosystem in the future). The majority of incentives currently are allocated for liquidity provisioning of stkTokens. LSTs (Liquid Staking Tokens) are powerless without deep liquidity against their base tokens. This is essential to meet the actual premise of liquid staking, liquefying a staked position.
PSTAKE Incentive Program November 2023
The Incentive Program aims to ensure sufficient liquidity for stkBNB and stkATOM in their respective ecosystems and nudge their use in DeFi applications like Borrowing/Lending, Stablecoin Collateralization, etc. As compared to the previous month, the November 2023 Incentive Program sees a 34.18% reduction in PSTAKE token spend, keeping in mind sustainable growth over the long term.
Below is a summary table of incentives allocated to various protocols across Cosmos and BNB Chain for November 2023.
| Protocol | Ecosystem | DeFi | PSTAKE Incentive |
|---|---|---|---|
| Dexter – stkATOM/ATOM Pool | Cosmos | DEX | 250K PSTAKE |
| Dexter – PSTAKE/XPRT Pool | Cosmos | DEX | 15K PSTAKE |
| ShadeSwap – stkATOM/ATOM Pool | Cosmos | DEX | 5K PSTAKE |
| ShadeSwap – stkATOM/SILK Pool | Cosmos | DEX | 5K PSTAKE |
| Thena – stkBNB/BNB Pool | BNB Chain | DEX | 110K PSTAKE |
| Total | | | 385K PSTAKE Tokens |
Rationale
pSTAKE on Cosmos
stkATOM has over $1.6 million in liquidity on various DEXs within the Cosmos ecosystem, such as Dexter, Osmosis, Crescent, and ShadeSwap. Around 47% of that liquidity exists on Dexter, the perfect fit for stkATOM liquidity due to its highly efficient Metastable pool offering. By being on the Persistence chain, Dexter gives pStakers the best LSTfi experience in the Cosmos ecosystem. Liquid staking on pSTAKE and providing liquidity on Dexter takes only two transactions, saving time and effort. stkATOM liquidity is also incentivized on the other DEXs that offer a unique proposition for stkATOM utility.
The incentives for stkATOM liquidity aim to sustainably deepen the token liquidity to make stkATOM more integrated into the Cosmos DeFi Ecosystem.
It is also important to note that the Cosmos Hub, through its community pool, may deploy ~$4.5M in stkATOM liquidity on DEXs such as Astroport on Neutron and Dexter on Persistence. A discussion regarding the same has been started on the Cosmos Hub Forum. This (if passed) will help create a deeper base liquidity for stkATOM without the need for heavy incentivization.
pSTAKE on BNB Chain
stkBNB has more than $1.3M in liquidity on DEXs such as Thena and PancakeSwap. Diverse stkBNB liquidity helps cater to all user types, efficient trading activity, and peg maintenance.
The incentives for stkBNB liquidity aim to maintain the current liquidity as stkBNB becomes more integrated into the BNB Chain DeFi Ecosystem.
Conclusion
Liquidity staking unlocks the liquidity of staked tokens & use cases in DeFi. stkTokens are nothing without liquidity against their underlying base token. The pSTAKE team will indefinitely provide guidance into where this liquidity and DeFi utility will exist, along with the PSTAKE incentives for achieving it. The pSTAKE Incentive Program blog posts will be published in the last week of each month, providing insights into the $PSTAKE incentive plan for the upcoming month.
About pSTAKE
pSTAKE is a multi-chain liquid staking protocol that unlocks liquidity for your staked assets. With pSTAKE, you can securely stake your Proof-of-Stake (PoS) assets to earn staking rewards, and receive staked underlying representative tokens (stkASSETs) which can be used to explore additional yield opportunities across DeFi.
At present, pSTAKE supports Binance Chain (BNB), Cosmos (ATOM), and Ethereum (ETH) networks’ native tokens, with a view to support more chains and assets in the future.
