Introducing stkSTARS: STARS Liquid Staking

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Save the date: The Stars are aligned for the launch of STARS Liquid Staking on pSTAKE on 7th March 2024, Thursday. 

Stargaze: Revolutionizing Cosmos with NFT-Fi, Culture, and Vibes 

In the ever-expanding universe of Interchain, a new star has been steadily rising since Q4 2021—Stargaze. This OG app chain isn’t just another blockchain platform designed to empower creators, traders, and developers. What Open Sea is to Ethereum, Stargaze is to Cosmos. Even Cooler and Fully Sovereign.

Think of it as a hub where NFTs meet DeFi, culture, and an undeniable cool factor that’s setting the new standard and trend in Cosmos, and binding it together.

Trendy NFTs? Zero Gas? Carbon Neutral? Welcome to Stargaze!

100% carbon neutral. ZERO gas. Fueled by CosmWasm, Stargaze emerges as the community’s very own app chain, transcending the world of NFTs and beyond. And what does ‘beyond’ signify here? Not just NFT-Fi (NFT-Finance) featuring a variety of dApps and services within its vibrant ecosystem, but an infusion of ‘Culture’ and ‘Vibes’ that Stargaze brings to Cosmos, redefining being good or bad!

The Stargaze dApp, known for its low fees and rapid minting capabilities, serves as a prime gateway to NFTs in the Interchain. It’s not just appealing to Cosmonauts but also those from outside the ecosystem, all drawn in by the unique culture and vibes. Among its standout NFT collections are Bad Kids, After the Filter, Picture Day, Rekt Bulls, and more, proving that being bad has never looked so good.

STARS: The Luminary of the Stargaze Ecosystem

STARS, the native token of Stargaze, shines brightly at the core of this network, facilitating:

  • NFT minting on its vibrant marketplace
  • Staking to enhance the security of the Stargaze chain
  • Participation in the network’s governance
  • Diverse DeFi applications, including trading, liquidity provision, and borrowing/lending mechanisms

The Case for STARS Liquid Staking

In the Proof-of-Stake (PoS) landscape, staking yield traditionally stems from token inflation, a mechanism designed to enhance network security. 

In the case of Stargaze, STARS stakers earn staking yield by delegating STARS to validators. These are rewards for adding to the security of the network. But Stargaze offers an additional form of yield called Real Yield.  Real Yield, as the name suggests, comes from fees charged by a protocol for usage of its services. Simultaneously, Stargaze community initiatives such as STARS thirdening (inflation reduction) that happened on 01 January 2024 have further amplified the value of STARS.

STARS stakers benefit from a dual-earning stream: yield from protocol activities, including NFT minting and trading, and the traditional yield for contributing to network security. However, to access these rewards, stakers need to lock up their tokens for 14 days, posing a dilemma between earning yields and maintaining liquidity for trading and DeFi activities.

The liquidity of STARS is crucial for its utility across trading and as collateral in the DeFi space, aiming to broaden user access and integration within the Cosmos ecosystem. For the NFT ecosystem to thrive in Cosmos, Stargaze’s security must not be compromised. With a current staking ratio of 43.2%, it’s clear that users are torn between securing the chain through staking and leveraging their tokens in DeFi markets and protocol activities like buying and selling NFTs.

Enter pSTAKE, which addresses this challenge and offers users the best of both worlds—staking and DeFi—while setting itself apart from other Liquid Staking Providers.

Why stkSTARS?

1. More DeFi utility and liquidity for STARS (via stkSTARS)

STARS is the hero token of the Stargaze network. The majority of STARS liquidity today is limited to Osmosis and Fin on Kujira. 

pSTAKE’s core objective is to anchor stkSTARS firmly within the Cosmos DeFi Ecosystem. Right from the outset, pSTAKE will seamlessly integrate with Dexter, Persistence One’s native DEX. Dexter’s role is pivotal in offering STARS a new trading and liquidity provision platform within the Persistence ecosystem, fostering a closer bond with the Persistence One community.

pSTAKE is a multi-chain liquid staking provider, and Dexter is the primary hub for the liquidity of pSTAKE’s LSTs. The launch of stkSTARS on pSTAKE and Dexter will expose STARS to a wider audience across several key ecosystems, including ATOM, DYDX, BNB, and OSMO, significantly enhancing its visibility and accessibility.

2. Enhancing Decentralization

It’s a given that decentralization of PoS chains is crucial—resilient network, enhanced security, fair governance, and community trust.

In alignment with Stargaze’s core value of decentralization, stkSTARS will launch with pSTAKE’s automated stake delegation and rebalancing model that will constantly optimize for decentralization by using various parameters to suggest the final validator set and the amount of stake delegation to each validator in this set.

For stkSTARS, The initial validator set for stkSTARS will be ~65 Stargaze validators based on the following data over the last 180 days:

  • Voting Power – 0.05% to 5%
  • Commission – 5% to 10%
  • Uptime – 95% to 100%
  • Governance Participation – 60% to 100%
  • Part of the active set without any slashing instance

While there are various delegation models, pSTAKE contributors strongly believe liquid staking providers should not gatekeep validator delegations. Delegation should be driven by transparent on-chain data (source of truth).

The new pSTAKE Chain Decentralization strategy has the potential to bring about the following benefits for STARS liquid staking:

  • Contributes to the decentralization of the Stargaze network
  • Constant liquid staking alignment with the Stargaze validator set
  • Have a significant differentiator for stkSTARS
  • Increase transparency with on-chain data-driven STARS distribution
  • Reduce protocol and users’ slashing risk

3. Auto-compounding of STARS Liquid Staking

In the Stargaze ecosystem, stakers benefit from a dual yield model: they receive staking rewards, derived from STARS inflation, and a Real Yield, which constitutes 50% of the protocol’s revenue generated from minting and trading activities. This Real Yield is distributed among STARS stakers, enhancing the overall rewards they earn from participating in the network’s security and economic activities.

pSTAKE introduces an innovative solution to further maximize these earnings through auto-compounding. This feature automatically reinvests both the Staking yield and the Real yield, with stkSTARS. So, now, on liquid staking STARS on pSATKE, you will get Staking yield and Real yield, both auto-compounded, along with the unlocked liquidity of the staked STARS.

4. Improving STARS Liquid Staking User Experience

    pSTAKE is committed to innovating and improving LSTfi user experience.

    One example is the innovative ‘Flash Unstake’ feature that will allow instant redemptions/unstaking of stkSTARS for STARS tokens. 

    The notion of LSTs is incomplete if users do not have instant access to native token liquidity. Primarily, this is done by building deep LST/native token liquidity. To go one step further and give pSTAKE users a superior liquid staking experience, pSTAKE allows instant LST redemptions on its dApp directly. 

    For example, users can instantly redeem stkSTARS for STARS (paying a small fee 1% fee) on pSTAKE. This works thanks to a state-of-the-art mechanism that will match daily STARS deposits into the protocol with daily stkSTARS withdrawal requests.

    STARS meet stkSTARS

    As more and more creator-led communities are formed on the premier destination for culture (NFTs) in Cosmos, STARS is destined to be a gateway to Interchain NFTs. 

    In February alone, NFT collection sales on Stragze crossed more than $4.5M. The user-retention rate on Stragaze is 69%, pretty good, right? (or should we say BAD?)

    The parabolic rise of widely recognized collections like Badkids and the constant releases of community-led collections like ch0pch0p will cement Stargaze’s position as a leading NFT Hub in all of crypto. The exponential rise of volumes on Stargaze is only the start of the story. 

    With more visibility and usage comes more need for chain security. STARS liquid staking can ensure that stars are aligned for the best of both worlds—Staking and DeFi. 

    On pSTAKE, STARS stakers can enjoy auto-compounded yields, access to instant liquidity, and DeFi utility with stkSTARS. Not to mention that an incentivized stkSTARS liquidity pool will go live on Dexter right at the launch. 

    Get ready to secure and decentralize Stargaze and earn auto-compounded Staking and Real yield, with additional DeFi yield!

    STARS : Culture meets Vibes : : stkSTARS : Staking meets DeFi.

    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 (Tokens) which can be used to explore additional yield opportunities across DeFi.

    At present, pSTAKE supports Cosmos (ATOM), Binance chain (BNB), dYdX network (DYDX), Osmosis (OSMO), with the support for Stargaze (STARS) and Persistence (XPRT) in the future.

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