pSTAKE x Pancakeswap: Making stkBNB the most liquid BNB LST

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Learn about pSTAKE’s strategic partnership with PancakeSwap aimed at enhancing the liquidity of stkBNB and making pSTAKE the premier Liquid Staking Provider within the BNB Chain ecosystem.

In the dynamic world of decentralized finance (DeFi), liquidity reigns supreme. This principle is foundational in the context of liquid staking, as Liquid Staked Tokens (LSTs) rely heavily on liquidity to function effectively.

pSTAKE Finance is embarking on an ambitious mission to become the premier liquid staking provider for the BNB Chain. The initial step on this journey involves establishing stkBNB as the most liquid BNB LST. pSTAKE Finance is excited to announce a strategic partnership with PancakeSwap, the largest decentralized exchange (DEX) on the BNB Chain, aimed at enhancing the liquidity of stkBNB (pSTAKE’s issued LST) within the BNB Chain ecosystem.

To build substantial stkBNB liquidity on Pancakeswap, pSTAKE Finance will indefinitely offer bribes to veCAKE holders. This will be achieved by leveraging veCAKE managers like Cakepie, StakeDAO, and more, with PSTAKE tokens (through governance) acting as the incentive.

A Synergistic Alliance

PancakeSwap is not just any platform; it’s a DeFi powerhouse, boasting a Total Value Locked (TVL) of $3 billion+, average monthly volumes surpassing $15 billion, and ~20% network dominance. This makes it the ideal breeding ground for stkBNB’s liquidity enhancement, providing users with an array of services, including swapping, farming, leverage trading, staking LP tokens, position management, and more.

The partnership between pSTAKE and PancakeSwap dates back to the Q3 2022 launch of stkBNB, with Pancakeswap serving as pSTAKE’s launch partner for stkBNB in the DeFi. At the launch, a stkBNB/BNB v2 farm was established, which exceeded $10 million in liquidity within days, showcasing the potential of this pair. With the stkBNB-BNB farm having evolved through multiple cycles and migrated to a v3 farm, the partnership is now entering a new phase of growth and expansion. Users can trade or provide liquidity on the stkBNB/BNB v3 farm on Pancakeswap here.

Planned Initiatives to Boost Liquidity

With a renewed focus on growth within the BNB Chain ecosystem, the following strategies have been outlined with an aim to establish deep stkBNB liquidity on Pancakeswap:

  • Whitelisting of the stkBNB/BNB Pair: The pool is now eligible to earn CAKE emissions on PancakeSwap, enhancing its attractiveness to liquidity providers.
  • VeCAKE Voting Mechanism: Users can stake their CAKE to obtain veCAKE, allowing them to vote on the stkBNB/BNB gauge CAKE emissions, directly influencing its liquidity incentives.
  • Incentives Through PSTAKE Tokens: Starting this epoch, the stkBNB/BNB gauge will receive PSTAKE token bribes through veCAKE manager Cakepie, offering additional incentives for voters and LPs. For the foreseeable future, pSTAKE is committed to continuing bribes to incentivize users and grow liquidity. For this epoch, veCAKE holders can go vote on the gauge and earn bribes on Cakepie here.
  • Future Plans for PSTAKE Liquidity: The synergy between pSTAKE and PancakeSwap will extend beyond stkBNB, with plans to boost PSTAKE liquidity, further enriching the ecosystem.

A Vision for the Future

pSTAKE Finance and PancakeSwap are both backed by Binance Labs. This strategic collaboration signifies a major step forward in pSTAKE’s mission. The initiative not only aims to secure deep liquidity for stkBNB but also sets the stage for enhanced integration with other protocols, leveraging this liquidity to foster additional effective use cases such as borrowing/lending, vaults, etc.

pSTAKE’s Total Value Locked (TVL) currently stands at ~$20M across the BNB Chain and Cosmos ecosystem. pSTAKE is committed to maximizing liquid staking yield for users and achieving dominance as the largest liquid staking provider by capturing a significant market share.

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