pSTAKE’s groundbreaking Bitcoin Liquid Staking solution is now live on the mainnet. As of today, users can deposit their BTC into the pSTAKE Finance dashboard and instantly start generating a yield on their assets.
You can access the pSTAKE Finance dashboard through the following link to make deposits;
We have released a detailed guide on how to deposit, which can be accessed here.
With BTC deposits now active on the pSTAKE Finance dashboard, here are the frequently asked questions, answered in this one blog:
What is Bitcoin Liquid Staking?
pSTAKE Finance’s Bitcoin liquid staking solution allows BTC holders to finally generate yield on their BTC holdings. It will enable users to securely deposit BTC and passively earn yield while retaining liquidity of their BTC through yBTC (a yield-generating BTC derivative).
V1 of the protocol just went live today, enabling BTC deposits for users.
How does the yield strategy work?
The first source of yield for depositors will come from Babylon’s Bitcoin staking protocol. The protocol turns BTC into a slashable asset, allowing it to be used as economic security to stake on PoS chains to provide rewards. The rewards generated from Babylon will be directly sent to pSTAKE depositors, alongside any other rewards (such as pSats).
pSTAKE will be introducing multiple sources of BTC yields in upcoming versions.
What other sources of yield are there?
In addition to the yield generated from security sharing through Babylon, pSTAKE depositors will also earn boosted pSats points when the pSTAKE SatDrop campaign launches in August.
When will my rewards be reflected?
BTC yield rewards will be reflected once pSTAKE deposits BTC into the Babylon security-sharing protocol, which is expected to go live in the coming weeks.
pSats will be reflected as soon as the SatsDrop campaign launches. pSats points will build over time, depending on the BTC deposit size, and users can see their accumulated pSats points on the pStake Dashboard.
Babylon isn’t live yet?
Correct. Babylon will launch its Bitcoin staking platform in multiple phases, each with its own BTC cap, in the coming weeks. Once it’s live, pSTAKE will aim to deposit as much of the BTC as its users have deposited into the Babylon security-sharing solution. However, we may not be able to deposit all the BTC due to potentially high transaction fees in BTC. We are actively monitoring the situation to ensure the most efficient and cost-effective approach for our users.
Why not deposit directly with Babylon?
The main reason to deposit BTC through pSTAKE instead of Babylon is that pSTAKE offers liquid staking, meaning you retain the liquidity of your assets. Once all BTC has been deposited into Babylon, pSTAKE will enable the minting of yBTC – a yield-generating version of BTC – allowing holders to retain the liquidity of their assets. yBTC will be integrated into numerous DeFi protocols, allowing holders to utilize their liquid staked token in other DeFi areas.
PSTAKE is committed to making the process of accessing Bitcoin yields as simple and safe as possible. Unlike Babylon, which requires users to choose a finality provider and the PoS chain to secure, pSTAKE handles these options, making it very easy for users. Most importantly pSTAKE will auto compound rewards into yBTC.
Wen yBTC?
pSTAKE is expected to launch yBTC on Ethereum in September 2024. Users that have already deposited BTC into pSTAKE Finance will receive an equivalent amount of yBTC as BTC deposited.
Is there a minimum BTC deposit amount on pSTAKE?
Yes, there is a 0.005 BTC minimum deposit amount on pSTAKE. This is to ensure pSTAKE security and system robustness with the Babylon protocol.
When and how can the BTC be unlocked?
Initially, withdrawals will be disabled for pSTAKE’s BTC liquid staking. This is due to limitation of Babylon’s staking infrastructure. However, we expect that unstaking and withdrawals will be enabled within the next few weeks.
Which wallet can I use to deposit and withdraw?
pSTAKE is supporting a variety of wallets for the first version of its BTC Liquid Staking Protocol, including:
- Binance Web3 Wallet
- OKX Wallet
- Bitget Wallet
- Ledger Wallet
What are the fees for using BTC deposits and withdrawals?
There are no protocol fees at the moment, but there are type types of network fees to consider, which vary depending on the Bitcoin Network:
- When you deposit Bitcoin into pSTAKE
- When pSTAKE deposits Bitcoin into Babylon.
Where are my BTC deposits stored, and how secure are they?
Currently, pSTAKE uses a custodial solution through Cobo, an institutional-grade custodian with more than $1.5 billion of assets under management.
What security measures are in place to protect my BTC?
PSTAKE has implemented a range of security measures to protect your BTC deposits. Oak Security, a reputable auditing firm, has thoroughly audited the pSTAKE Liquid Staking solution, providing an additional layer of security and peace of mind.
