The New Era of DeFi: Moving from Speculation to Value Creation with Persistence

DeFi and cryptocurrencies have grown tremendously over the last few years. The industry picked up steam and witnessed immense growth even amid all uncertainty. The total crypto market cap stands at $1.66T as of July 2021. Stablecoins that are a part of the DeFi world saw tremendous growth and surpassed a market cap of $108.8B in July 2021.

The total value locked in decentralized finance protocols grew from $690.9M in January 2020 to $71.5B as of July 2021.

Despite this tremendous growth, DeFi scales to less than 0.01% of the traditional finance economy. Even today, it remains like a drop in the ocean of global finance. There are many reasons for this restricted growth. But the real hindrance is caused because DeFi is yet to enter the value creation phase.

Cryptocurrencies and other crypto products are still widely speculated and considered to be luxuries or collectibles for the rich. If DeFi moves beyond this speculative phase into the value creation phase, we could see mass DeFi adoption. Working on this vision is the DeFi project Persistence.

An Ecosystem of Financial Products

Persistence is an ecosystem of next-generation. It brings in new asset classes into DeFi. All of these products are aimed at stimulating liquidity and facilitating the seamless exchange of assets globally.

The project was first initiated on Ethereum but soon shifted to the Cosmos network due to scalability issues. Persistence’s mainnet is a proof-of-stake chain powered by the Tendermint BFT engine.

All the products built on Persistence have the unique advantage of being supported by the Persistence infrastructure. With bridges to Cosmos and Ethereum, it enables pure interoperability.

Persistence is already creating a dent in the marketplace. It has a staking ratio of 90% of its token supply. This is by far the highest in the DeFi.

The network also has 13,356 participating wallets, 1,950,334 blocks, and 85 validators who have together validated over 190,058 transactions.

The Persistence Tech Stack with its SDK (Software Development Kit) and comprehensive plug-and-play modules is the backbone of the entire project. It facilitates the development of newer and better financial products for the future.

Commodities to Staked Asset Liquidity, How Persistence is Transforming Global Markets

Persistence already has a network of financial products through which it offers unique financial solutions to the global markets.

The first one on the list is Comdex. Comdex, the first product of the Persistence network, is a blockchain-based synthetic DEX. The platform aims to enable easy accessibility to commodity synthetics for market participants from across the globe. The institutional application of Comdex has been well received by the trading marketplace. In May 2021, it surpassed $100M in trading volume.

Comdex has also announced the launch of a follow-up platform called SHIPFi. It aims to bridge the gap between CeFi and DeFi while allowing traders to tokenize real-world debts for major stablecoins.

The Persistence network also has a staking-as-a-service solution for proof-of-stake networks called Audit.One.  

Audit.One offers white labeling solutions for hardware and software. Users can stake their funds without the technical burden of it. As of now, Audit.One supports 10 different networks including Cosmos and Polygon (Matic).

Support for Tezos, Ethereum 2.0, and Polkadot coming soon

The next and probably the most interesting product in the persistence ecosystem is the recently launched pSTAKE.

pSTAKE taps into the untapped zone by creating liquidity for billions of staked assets.

The PoS protocol has become the top favorite consensus mechanism with almost all new DeFi projects opting for it. With this, staking has become a popular way for people to earn returns on their assets. However, staking requires locking up of assets, which means stakers can no longer use their assets.

pSTAKE addresses this problem by allowing users to unlock the liquidity of their staked assets. This is achieved by issuing 1:1 pegged stkTokens that represent the staked tokens. The stkTokens can then be used across blockchain networks for funding lending or mining pools. This allows users to earn significant returns on top of staking rewards.

The Future

Persistence is taking all the challenges in the financial system head-on to provide holistic blockchain-based solutions for the same.

These solutions create a paradigm shift. Cryptocurrencies and NFTs move from being mere assets to work tokens that can facilitate the mass adoption and growth of DeFi.

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