What’s coming next to maximize LST yield on Persistence One?

The Persistence One ecosystem, a trailblazer in the DeFi landscape, is poised for an exciting phase of expansion and innovation. With a strong foundation built on the Cosmos app chain, Persistence is dedicated to maximizing liquid staking yield through its purpose-built Layer 1 platform. As we look to the future, several key developments are set to redefine what's possible within this vibrant ecosystem.

Restaking

Persistence One is revolutionizing the Cosmos ecosystem by introducing restaking, a feature that allows users to redeploy their liquidity through platforms like pSTAKE, Stride, Quicksilver, and Milkyway. 

Additionally, restaking on Persistence One facilitates the creation of Liquid Restaking Tokens (LRTs) and Liquid Restaking Finance (LRTfi) in Cosmos, offering a new dimension to DeFi participation with restaked assets.

Benefits of restaking

• Increases and diversifies the economic security of the Persistence Core-1 chain.

• Users enjoy rewards in both the native token of their staked asset and additional XPRT staking rewards.

• Elevates the utility and value of LSTs.

• Incentivizes users to stake their assets for extended periods.

• Lays the foundation for new DeFi use cases like LRTs and LRTfi.

Security Enhancements and Strategic Expansions

At the heart of Persistence's growth strategy is a steadfast commitment to security and the continuous improvement of its infrastructure. The ecosystem is exploring the potential of restaking to maximize LSD yield.

On the security front, Persistence is taking several security considerations:

• Babylon and Bitcoin: Persistence is looking closely at how Babylon is leveraging Bitcoin’s security as a timestamping server. This integration is crucial for various use cases, such as DeFi transactions, supply chain tracking, and more.

• Various security models in Cosmos: Persistence is keeping a watchful eye on Interchain security – in particular, Mesh and Opt-in security. Opt-in security allows validators to support specific consumer chains, mitigating the risk of validator burnout. On the other hand, mesh security empowers delegators to bolster consumer chains by leveraging economic security through the Cosmos Hub's token, promising a tightly-knit network of mutually secured blockchains. 

• Bug bounties: Persistence has launched a new bug bounty on Hexens, coupled with the existing Immunefi bounty, underscoring their proactive approach to security. 

• Security audits: Dedicated to upholding the highest security standards, every new product and feature undergoes thorough security audits. This steadfast approach guarantees the resilience of Persistence’s offerings.

Product Expansions

#1 pSTAKE's Evolution

stkDYDX

pSTAKE Finance is poised to significantly impact the liquid staking landscape by introducing stkDYDX, an innovative solution designed to streamline and enhance the staking experience. 

With a zero-fee incentive for the first two months to encourage adoption, stkDYDX will also have a novel no-click auto-compounding feature, simplifying the staking process and enhancing yield potential.

This auto-compounded staking reward system provides investors hassle-free, optimized earnings mechanism. Further bolstering its value proposition, stkDYDX will leverage an automated validator selection and rebalance strategy. This approach ensures that stake $DYDX is distributed among the top 50% of active set validators who meet stringent requirements.

An additional innovative service offered by stkDYDX is Flash Unstake. This feature allows users to instantly redeem their $DYDX for a nominal fee of 1% or opt to wait 30 days to receive the full amount without any charges. This flexibility caters to a range of user preferences, from those seeking immediate liquidity to those willing to wait for a fee-free withdrawal.

To deepen its integration within the cryptocurrency ecosystem, stkDYDX is set to become a crucial element of the liquidity foundation for prominent Decentralized Exchanges (DEXs) like Dexter and Astroport on the Neutron platform. The introduction of stkDYDX is also being considered for integration into Ethereum-based Liquid Staking Finance (LSTfi) protocols, signaling its potential widespread applicability and utility.

The launch phase is further sweetened with a heavy incentive of 300k $PSTAKE on Dexter, specifically aimed at kick-starting the liquidity flywheel for DYDX.  

The potential for dual governance between pSTAKE and stkDYDX is being explored. This collaborative approach aims to closely align with the DYDX community's interests and governance structures.

stkXPRT

By launching stkXPRT, pSTAKE empowers users to seamlessly transition from natively staked XPRT to a stkXPRT/XPRT LP position on Dexter with just a single click. Set to kick off the coming weeks, this move breathes life into the Superfluid LP concept, allowing your staked assets to work harder and smarter for you. It also does away with the conventional 21-day unbonding period and strengthens chain security by maintaining a high bonded ratio.

stkATOM Expansion

stkATOM is already active on Astroport and Mars on Neutron, aligning with the Atom Economic Zone (AEZ) and demonstrating Persistence's commitment to promoting Cosmos Hub decentralization. By making stkATOM accessible as collateral across various platforms, including Kujira's Ghost Money Market and Agoric's Inter Protocol dApp—where stkATOM will be utilized to mint IST—Persistence One is significantly enhancing the liquidity and utility of stkATOM within the broader Cosmos ecosystem. stkATOM may also go live on Levana Perps on Osmosis soon.

pSTAKE’s new validator stake delegation and rebalancing strategy (currently live for stkDYDX and stkOSMO) will soon also be enabled for stkATOM, which includes daily adjustments to validator weights and an expanding set of validators to enhance the ecosystem's security and efficiency. This strategy, characterized by its transparency and reliance on on-chain, data-driven decision-making, ensures that validator weights are calculated daily, fostering an environment where stake delegation and rebalancing are strategic and responsive to the Cosmos Hub's evolving needs. 

Airdrops for All

pSTAKE is actively looking to partner with new projects to get stkToken holders included in the upcoming airdrops. Recently, Aether announced a partnership with pSTAKE and now stkATOM holders will be eligible for Aether airdrop snapshot.

Teams looking to distribute their tokens to stkToken holders no longer need to coordinate with the Persistence team. Instead, they can simply select a block height and access the required data with just one click, making airdrops— or 'fairdrops'—more accessible and equitable for the community.

#2 Strategic Integrations

Persistence One has made a strategic acquisition of ASTRO tokens, enabling active participation in initiatives like the upcoming ASTRO Wars on Neutron. After aligning with the Atom Economic Zone and integrating with Astroport on Neutron, Persistence One has also integrated with Mars on Neutron to list stkATOM as collateral, marking another significant milestone in the Persistence x Neutron partnership. Furthermore, Persistence One is looking to integrate pSTAKE's other stkTokens, such as stkDYDX, within the Neutron ecosystem dApps. This highlights Persistence's comprehensive strategy to cultivate a dynamic market for liquid staking tokens (LSTs).

Additionally, Persistence One has partnered with Shade Protocol to create a new XPRT <> SHD Pool of Liquidity (POL) on ShadeSwap, contributing $150k worth of XPRT and SHD each to establish a $300k liquidity pool without relying on third-party incentives. More details here.

Persistence also focuses on improving passive trading experiences and swap efficiency through integrations with DEX aggregators such as Skip ibc.fun, Squid, and TFM. These collaborations aim to streamline trading processes and ensure users can access the best possible rates. 

#3 The Super App

Persistence aims to create a "Super app" that merges liquid staking, trading, and liquidity provisioning into a cohesive interface. This simplifies the process for users to engage with DeFi activities. The first version of this super app enables users to easily access liquid staking via pSTAKE, participate in trading or liquidity provisioning through Dexter, and stake XPRT directly on Persistence, thereby improving the overall user experience.

Future iterations of the SuperApp aim to further streamline user interaction by directly integrating Liquid Staking Token (LST) yields from various networks within the app. 

pSTAKE will enable users to mint stkTokens such as stkATOM, stkDYDX, and stkOSMO using stablecoins like USDC or USDT with a single click, significantly enhancing the LSTfi user experience.

#4 Dexter: New Features and Pools

Dexter is concentrating on enhancing liquidity and providing an optimal trading experience in the coming months. Recently, Dexter crossed a milestone of $8M+ in Total volumes and ~$6M in Total Value Locked (TVL). A new stkDYDX/DYDX Metastable pool just went live on Dexter with external 300k $PSTAKE incentives. In the coming weeks, Dexter has plans to introduce some new pools, including, stkXPRT/XPRT, and XPRT/SHD, and many more.

Additionally, Dexter is expanding its ecosystem by integrating with Skip Protocol's ibc.fun trading routes, offering traders more diverse options.

Dexter has recently launched Instant LP unbonding, and to further support liquidity providers, Dexter is launching a custom Instant LP Unbonding (ILPU) feature, allowing for custom fee tiers for instant unbondings on individual pools on Dexter, thus providing flexibility and protection against impermanent loss, while incentivizing liquidity strategically. Dexter is also pioneering the stkXPRT Superfluid LP, allowing XPRT stakers to LP on Dexter, and enhancing the liquidity provision's efficiency. An Analytics dashboard is in the works to offer insights into trading patterns and liquidity metrics, reinforcing Dexter's commitment to transparency and user empowerment.

Conclusion

Persistence’s upcoming features and enhancements perfectly position it as a key player in the evolution of the DeFi ecosystem. As the ecosystem continues to evolve, the future of Persistence looks brighter than ever, promising unprecedented opportunities for users and stakeholders alike.

Check out Persistence here.