Overview
Initially launched in July 2023, the pSTAKE Incentive Program was originally intended to give pSTAKE users forward-looking insights into PSTAKE incentives on various DeFi integrations across Cosmos, Osmosis, dYdX, Stargaze, Chihuahua, and BNB chains. It was designed to help bootstrap liquidity and encourage the usage of stkTokens in the Persistence One ecosystem.
Over that time, a substantial portion of our incentives were allocated to the liquidity provision of stkTokens, ensuring holders could seamlessly redeem the staked asset for the underlying asset. Since its launch, the pSTAKE Incentive Program has delivered adequate incentives for liquidity providers, contributing to deepening the liquidity across a handful of important pools in Cosmos and BNB Chain ecosystems.
Today, we announce the first major change to our pSTAKE Incentive Program, which reflects pSTAKE’s strategic planning and long-term sustainability.
Let’s get into it.
pSTAKE Incentive Program May 2024
Commencing May 2024, the pSTAKE Incentive Program will pivot to a more focused strategy. We will continue seeking to encourage the usage of stkATOM and stkOSMO in DeFi applications such as lending and borrowing, stablecoin collateralization, and so on, while also making adequate provisions to ensure deep liquidity for them in their respective ecosystems.
The May 2024 summary table shows the incentives given to different protocols in the Cosmos ecosystem:
| Protocol | Ecosystem | DeFi | PSTAKE Incentive |
| Dexter – stkATOM/ATOM Pool | Cosmos | DEX | 50k PSTAKE |
| Quasar – stkOSMO vault | Cosmos | DEX | 15k PSTAKE |
Rationale
Our decision to recalibrate the incentive structure originates from pSTAKE’s forward-thinking strategic planning. Instead of providing a wide range of incentives for various pools on multiple platforms, pSTAKE is now making a more strategic and focused move to allocate incentives more efficiently.
The pivot to a more focused incentive allocation strategy enables us to channel our resources more effectively, prioritizing areas where we anticipate substantial growth and alignment with our strategic goals. By doing so, we not only enhance our efficiency but also the pace of achieving long-term objectives.
With the incentive structure adjusted, we can now work toward a more tailored range of incentives, allowing us to direct incentives toward products we anticipate seeing major growth and what route to take to provide that incentive.
pSTAKE on Cosmos
stkATOM is one of our most important LSTs. It has ~$7 million in liquidity on various DEXs within the Cosmos ecosystem, such as Dexter, Osmosis, Astroport, and ShadeSwap. Over 50% of that liquidity exists on Dexter, the perfect fit for stkATOM liquidity due to its highly efficient Metastable pool offering. The continued incentives for stkATOM liquidity aim to sustainably deepen the token liquidity on Dexter to continue making stkATOM more integrated into the Cosmos DeFi Ecosystem.
stkOSMO (launched in December 2023) also continues to gain progressive traction. StkOSMO’s liquidity base is currently on the Osmosis DEX, which is also integrated with Quasar’s Dynamic Vault. In fact, stkOSMO is the first and only OSMO LST to have a vault on Quasar. The incentives for the stkOSMO/OSMO pool and vault will help grow its liquidity, and we are committed to continuing its growth.
Conclusion
As we streamline the pSTAKE Incentive Program and pivot into a new chapter, we embark on a journey to show our commitment to a sustainable future. This shift in our incentive model underscores our dedication to the most optimized resource allocation within the heart of the Persistence One ecosystem.
We look forward to unveiling a series of targeted incentives in the months ahead that will be designed to support our long-term goals on pSTAKE.
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), and Stargaze (STARS).
