Tuesday’s announcement by pSTAKE, a liquid-staking protocol for decentralized finance (DeFi), platform Persistence, was made to Cointelegraph. It announced that it has closed a $10M strategic funding round from venture capitalists. Tendermint is the core developer of the Cosmos network and powers Persistence’s consensus engine.
Liquid staking allows users to “double-dip” with crypto assets. This means that they can stake their crypto in one pool but use the staked assets to farm yields at a liquidity provider pool. This process allows for higher compounded returns, since assets generate returns in two pool instead of one. However, it is more risky, because investors hold multiple-layer derivatives their original token.
We are rewarding the best article about #LiquidStaking Topic: Is LiquidStaking the Future for PoS? Winner will be published on the pSTAKE blog & will receive: $250 in $ATOM Shout-out from pSTAKE Deadline: 19th Nov Details & submissions: https://t.co/JcH0LyUfC5 pic.twitter.com/YVzaQFVs6Z
— pSTAKE Finance (.) (@pStakeFinance November 12, 2021
Diverse venture capital groups supported the funding, including Sequoia Capital India and Three Arrows Capital. Ajit Tripathi (head of institutional business development at Aave Do Kwon and founder of Terra), as well as Tascha Punyaneramitdee (co-founder of Alpha Finance), were also angel investors.
Tushar Aggarwal CEO and Founder, Persistence said:
“PSTAKE has seen significant organic growth since its September launch, which was uncapped. We are delighted to build on this upward trend.”
Shailesh Lakani, managing director at Sequoia India, made the following comments about the development:
“The Sequoia India Team is thrilled to support them in building a roadmap that will bring more utility and composability for staked assets.”