It’s official: The pSTAKE Community has passed the governance proposal to “Launch token utility mechanism to stake $PSTAKE and earn $BTC”. As a result, $PSTAKE Staking is now live.
The new staking feature provides BTC rewards to $PSTAKE holders while fostering user engagement and incentivizing long-term YBTC and protocol governance usage.
With the staking mechanism now live, users can easily navigate to the $PSTAKE staking platform and deposit their tokens to start generating BTC rewards in just a few clicks.
What is pSTAKE Staking?
$PSTAKE Staking is a brand new way to lock the $PSTAKE token, participate in protocol and community activities, and earn $BTC.
The pSTAKE staking product is a unique initiative aimed at:
- Fostering user engagement
- Usage of YBTC in BTCfi
- Incentivizing long-term governance
The staking process is relatively straightforward. Users must stake $PSTAKE tokens into the staking platform to generate token rewards over consecutive seasons. Each season lasts two weeks and has a unique staking cap – the maximum amount of tokens that can be staked during that season. This means users must quickly get their place in the staking ecosystem.
Multiple snapshots will be taken randomly during the season, and users staked during the snapshots will earn rewards for that specific season. You will still earn rewards if you start staking mid-way through the Season.
All staking and unstaking actions are conducted on the Base Chain and can be executed anytime. Before staking, participants must bridge PSTAKE tokens to the Base network. To learn how to bridge to Base, please follow this guide.
Are Rewards Really in Bitcoin?
At the end of each season, all rewards are paid in a BTC derivative (e.g., cbBTC, wBTC, etc.). The process of staking accumulates pSats, which are automatically converted into BTC when a user claims their rewards.
Users can claim their rewards if they have completed all the designated tasks for that season. Users must claim their rewards within a specific time window (currently set at three days) after each season ends to claim BTC yield.
The distribution of pSats during the staking period is allocated in two separate pools as follows:
- 80% of pSats to all users staking PSTAKE
- 20% of pSats to PSTAKE Stakers holding at least 0.05 YBTC.
As a result, users that have deposited BTC into the pSTAKE Finance BTC Liquid Staking solution (min 0.05 BTC) will generate a higher allocation of pSats and, therefore, BTC yields.
The following table demonstrates allocations for users:
| User Journey | |||
| Has PSTAKE (not staked) | Has PSTAKE (staked) | Holds yBTC (+=0.05) | |
| Yes | Yes | Yes | 100% Reward Pool |
| No | Yes | Yes | 100% Reward Pool |
| Yes | Yes | No | 80% Reward Pool |
| No | Yes | No | 80% Reward Pool |
| Yes | No | No | No Rewards |
| Yes | No | Yes | No Rewards |
| No | No | Yes | No Rewards |
| No | No | No | No Rewards |
Arcanum Capital, the original proposers of this $PSTAKE staking mechanism highlight that now may be the optimal time to update the PSTAKE token’s utility for the following reasons:
- BTCfi is a hot narrative
- BTC is at an all-time high with Bitcoin DeFi as a prime beta next
- Recent pSTAKE milestones on product, TVL, distribution, and mindshare
- $PSTAKE is the only Bitcoin LST token tradable in the market today
- Increase awareness with value accrual, grow holders, users, and liquidity, and also aid in Centralized Exchange listings where $PSTAKE is not yet listed
How to Get Started?
- Follow our step-by-step tutorial for a seamless staking experience.
- Bridge your $PSTAKE tokens to Base.
- Head to our staking platform and deposit your tokens.
About pSTAKE Finance
pSTAKE Finance is a Bitcoin Yield and Liquid Staking protocol, backed by Binance Labs.
With pSTAKE Finance, users can liquid stake BTC to get rewards from Babylon’s Trustless BTC staking for securing other app chains while maintaining their liquidity.
Accessing Bitcoin yields should not be complex, risky, or unsafe. With four years of liquid staking expertise and expert-curated yield strategies, pSTAKE Finance helps individuals and institutions put their BTC to work in BTCfi.
pSTAKE Finance has partnered with leading blockchain security firms, such as Halborn, Hexens, Oak Security, Immunefi, Forta, and more, to offer a secure liquid staking product suite.
PSTAKE is the governance and incentivization token of the pSTAKE Finance protocol. It has some of the most prominent investors, including Binance Labs, DeFiance Capital, Spartan Group, Coinbase Ventures, and Kraken Ventures.
