PSTAKE pSTAKE Finance

What is pSTAKE Finance?

pSTAKE Finance is a liquid staking protocol that allows users to stake their assets while maintaining liquidity. It supports various assets, including ATOM and BTC, and offers high yields through auto-compounding staking rewards.

Key Features:

• Liquid Staking: Users can stake their tokens and receive staking tokens (stkTokens) in return, which can be used in DeFi applications to earn additional yields.
• Supported Assets: Currently supports liquid staking on Cosmos, BNB Chain, and Persistence.
• Staking Process: Users deposit their assets into the pSTAKE StakePool contract, which are then delegated to validators according to a predefined allocation ratio.
• Token Exchange: Users exchange their tokens for pTOKENs at a 1:1 ratio, which can be staked to earn stkTOKENs, usable across different protocols.
• Bridge Functionality: The protocol includes a bridge (pBridge) that allows for the minting of pTokens, which are ERC-20 wrapped tokens pegged 1:1 with the staked PoS tokens locked in the bridge.

Benefits:

• Liquidity: Users can maintain liquidity while staking their assets.
• Additional Yields: stkTokens can be used in DeFi to earn additional yields.
• Diversified Validator Set: Assets are delegated to a whitelist of validators, spreading the risk and mitigating slashing risks.

Partnerships and Funding:

• Backed by: Binance Labs, Coinbase Ventures, and other notable investors.
• Funding Rounds: Secured $10 million in two seed funding rounds led by Sequoia Capital.
• Strategic Investments: Binance Lab announced a strategic investment in pSTAKE Finance in May 2022.

Recent Developments:

• Expansion Plans: Plans to expand liquid staking to the Solana ecosystem.
• Airdrop: Launched the first season of the pSTAKE airdrop on Solana.
• Security Partnerships: Partnered with leading blockchain security firms to offer a secure liquid staking product suite.

Website:

https://app.pstake.finance

Pros of pSTAKE Finance

• Native BTC Support: pSTAKE Finance allows users to stake their actual Bitcoin holdings directly through the platform, eliminating the need for complex token swaps or cross-chain bridges.
• Real and Tradable Token Rewards: The platform provides immediate, tradable token rewards, which can be realized immediately without waiting for future token launches or vesting periods.
• Dual Reward Structure: pSTAKE Finance offers a dual reward structure, enhancing the utility of staked assets while benefiting from a liquid market.
• Seamless Integration: It offers a seamless integration with Binance’s ecosystem, allowing users to transfer Bitcoin directly from their Binance CEX accounts to their Binance Web3 wallets via the mobile app.
• Non-Custodial Process: pSTAKE Finance is a non-custodial process, meaning users don’t need to entrust their assets to a third-party custodian, only trusting the audited code and smart contracts.

Cons of pSTAKE Finance

• Limited Interoperability: Bitcoin’s lack of native smart contract functionality and limited interoperability with other blockchains can slow down the development of Bitcoin-based liquid staking protocols.
• Dependence on Babylon’s Framework: pSTAKE Finance relies on Babylon’s native staking framework, which may limit its flexibility compared to other staking protocols.
• Challenges in Expanding Application: Despite its advantages, pSTAKE Finance still faces challenges in expanding its application and user base.

Founders of pSTAKE Finance

• Tushar Aggarwal: A graduate of Nanyang Technological University in Singapore, who has held key positions at various crypto funds and Outlier Ventures. He co-founded Persistence with Mikhil Pandey in 2019 and subsequently launched pSTAKE Finance in 2020.
• Mikhil Pandey: A University of Mumbai graduate, who is a senior member of Persistence and has advanced from a market research assistant to overseeing strategy and business development.
• Deepanshu Tripathi: Co-founder and CTO, who also founded the one-stop NFT service platform AssetMantle in 2022.

Key Team Members

• Abhitej Singh: Head of ecosystem and marketing, who previously worked at BLOCK42.network and Cosmos India.

Funding Rounds

• Seed Round: Completed in November 2021, led by Galaxy Digital and DeFiance Capital.
• Public Sale Round: Conducted in December 2021, raising $10 million and reaching a valuation of $20 million.
• Strategic Funding: Received from Binance Labs in May 2022.

Project Background

• Launch: pSTAKE Finance was launched in 2020 by Tushar Aggarwal and Mikhil Pandey.
• Mainnet Launch: The mainnet for pSTAKE Finance’s BTC Liquid Staking solution was launched at the end of July 2022.

Additional Information

• Website: app.btc.pstake.finance for detailed instructions on how to stake BTC on pSTAKE Finance.

Investors in pSTAKE Finance

pSTAKE Finance has secured investments from several prominent entities in the crypto space. These include:

• Binance Labs: A leading blockchain and cryptocurrency investment firm.
• DeFiance Capital: A venture capital firm focused on decentralized finance (DeFi) projects.
• Spartan Group: A global investment firm with a focus on blockchain and crypto assets.
• Coinbase Ventures: The investment arm of Coinbase, a major cryptocurrency exchange.

These investors have contributed to the development and growth of pSTAKE Finance, supporting its mission to provide liquid staking solutions for Bitcoin and other assets.

Is pSTAKE Finance Halal?

No, it cannot be determined without further information. The halal status of pSTAKE Finance depends on several factors:

• Project Intent: The project must not support or be involved in activities considered haram, such as gambling, alcohol, or pornography.
• Governance and Values: The governance and values of the blockchain platform must be ethically sound and compliant with Islamic finance principles.
• Interest/Riba: There should be no interest or riba involved in the staking or investment process.
• Clarity and Transparency: The terms and conditions of the staking process must be clear and transparent, with no excessive uncertainty or ambiguity.
• Sharia Compliance: The project must be screened for Sharia compliance, ensuring that it aligns with Islamic finance principles.

To determine if pSTAKE Finance is halal, it is essential to conduct thorough research and due diligence on these aspects.