pSTAKE Finance brings liquid staking and a new airdrop to the Cosmos ecosystem

Since its launch, pSTAKE has offered liquid staking for Cosmos and XPRT, which have annual yields of 12% and 32%, respectively. Users who deposit ATOM or XPRT on the protocol receive stkATOM or stkXPRT in return, which can then be used for various functions in decentralized finance (DeFi), including borrowing and lending.

According to data from Defi Llama, the pSTAKE protocol currently has a total value locked (TVL) of $48.63 million.

Developers behind the project are currently working on adding support for other tokens including Ether, Terra (LUNA ) and Solana (SOL ).

Lido, for instance, is a liquid staking protocol that already offers support for Eth2, Terra, Solana and Kusama, and has a TVL of $9.35 billion.

The main difference for pSTAKE is that it emerged out of the Cosmos ecosystem and has its main focus on increasing liquidity for other protocols that are part of the Inter-Blockchain Communication Protocol (IBC) through adding Ethereum Virtual Machine (EVM) compatibility.

While Lido does offer support for Terra, pStake is the only protocol that offers support for ATOM and other Tendermint-based projects.

As a way to help increase community support and reward early adopters, the project launched an airdrop of its pSTAKE token, which will see 30 million pSTAKE distributed over the next six months to a variety of addresses including ATOM, OSMO and XPRT stakers.

On the development side, one of the main collaborations being explored currently is with Terra’s Anchor Protocol (ANC), a savings protocol that is responsible for the minting of the TerraUSD (UST) stablecoin.

ATOM tokens could eventually be used as collateral to mint UST on Anchor, which can currently only be done with LUNA and Ether.