How Liquid Staking is Supercharging DeFi: Deep Dive
DeFi (decentralized finance) has vastly enhanced opportunities for users across the financial landscape, offering accessible and highly attractive yield-generating vehicles to the majority of the global population through the blockchain. At its peak in November 2021, DeFi had grown to $240B+ TVL across various flourishing ecosystems (currently ~$100B).
Before DeFi’s emergence, staking has been a popular yet conservative strategy where users leverage their idle digital assets to earn attractive yields while also providing security to the underlying network. Since its inception, the industry has seen a phenomenal rise in its overall growth, amassing over $115 billion in current global staked value and 4.8 million stakers worldwide to date.
With staking attracting such a large number of participants in their pursuit to earn rewards and provide better network security, significant potential TVL and activity have been siloed away from the DeFi landscape in PoS. Reversely, the emergence of DeFi has highlighted the limited utility that staked assets provide compared to the composability and financial opportunities available in the vibrant DeFi space.
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Persistence is a Tendermint-based, specialised Layer-1 network powering an ecosystem of DeFi applications focused on unlocking the liquidity of staked assets.
Persistence facilitates the issuance and deployment of liquid-staked stkASSETs, allowing users to earn staking rewards while participating in DeFi primitives, such as lending/borrowing and liquidity provisioning on DEXs.
Persistence aims to offer a seamless staking and DeFi experience for PoS (Proof-of-Stake) users and enable developers to build innovative applications around stkASSETs.