• The pSTAKE Protocol has raised $10 million in a funding round, making it the largest liquid staking protocol in the Cosmos Ecosystem

  • pSTAKE has officially announced the successful completion of a $10 million strategic funding round. Three Arrows Capital, Sequoia Capital India, DeFiance Capital, and Galaxy Digital led the funding round, which was completed by the liquid staking protocol.

    pSTAKE Secures $10 Million in Strategic Funding

    Coinbase Ventures, Kraken Ventures, Tendermint Ventures, Alameda Research, Spartan Group, and Sino Global Capital were among the notable venture capital firms that participated in the funding round. Some angel investors came along as well, representing projects such as Alpha Finance, Aave, and Terra.

    Meanwhile, the same team that supported Persistence, an interoperable Proof-of-Stake (PoS) protocol, is also working on pSTAKE.

    According to Tushar Aggarwal, CEO and Founder of Persistence, this funding round is a significant milestone for pSTAKE and the entire Persistence ecosystem. Aggarwal went on to say that the round will help to accelerate the growth of pSTAKE while also establishing its presence in the Cosmos and Ethereum ecosystems. However, according to the terms of the agreement, participants in the funding round will reportedly receive PSTAKE tokens worth a total of $10 million. The tokens are expected to be released soon. Additionally, pSTAKE investors have purchased XPRT, Persistence’s native token. This will provide them with direct exposure to the Persistence ecosystem as a whole.

    Aggarwal also stated that the new funds will be used to expand the team, scale the product even further, and improve security. Another portion of the funds will be used for marketing and general project development.

    Where Does Liquid Staking Fit In?

    As Aggarwal points out, the best user experiences are not obtained by locking up capital, and staking yields are nowhere near the yields found in DeFi. This is where liquid staking is supposed to come into play.

    When users stake with a liquid staking protocol, they earn staking rewards as well as tokens equal to their staked position.

    For example, when staking Ethereum in anticipation of the ETH 2.0 launch, all that is required is to store the ETH in the network’s blockchain. However, using a liquid staking protocol, a user could lock up the same amount of ETH in the same way. Only this time, they’d be given another token — say, pETH — which could then be used in another protocol.

    However, the advantages of a liquid staking model do not stop there. According to Aggarwal, another advantage of the liquid staking model is that it allows users to exit a staking position without having to wait for the standard unbonding period. That is the amount of time that elapses between when a staker sends an unstaking transaction and when they receive liquidity for their assets.

    Major networks, such as the Cosmos Network, have an unbonding period of at least 21 days.

    According to the pSTAKE community dashboard, it currently has around $30 million in assets staked, making it the largest liquid staking protocol in the Cosmos ecosystem. With the new funding, the team is optimistic about reaching a total value of $100 million by the end of 2021.

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