Original author: Jiang Haibo, PANews

Original author: Jiang Haibo, PANews

At the same time, some public chains with higher staking yields may also be worthy of attention, such as Cosmos. According to Staking Rewards data, the current market value of Cosmos Hub (ATOM) is 3.3 billion US dollars, the pledged market value is 2.3 billion US dollars, and the pledge yield is 21.92%.

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The ATOM pledge rate is close to 70%, and the income comes from block rewards and transaction fees

ATOM's 21.92% pledge yield is almost the highest among the major public chain native tokens, but the inflation-adjusted yield (pledge yield-inflation rate) is only 3.58%, which means that ATOM's inflation is very high . In this case, without staking, token holders would be substantially diluted over time.

According to the rules of Cosmos, the staking income of ATOM mainly comes from the following two aspects.

1. Block rewards. This part is determined by Cosmos’ on-chain parameters, including the expected number of tokens minted per year and the expected block time, which determine how many tokens are minted per block as rewards. According to the rules of Cosmos, the annual inflation rate of ATOM is between 7% and 20%, aiming to maintain the pledge rate at 67%. If staked ATOMs account for less than 67% of the total, the inflation rate will increase at an annual rate of 13% to 20%. If the staked ATOMs account for more than 67% of the total, the inflation rate will decrease at an annual rate of 13% to 7%. As of April 26, the stake ratio of ATOM was 69.75%, so the inflation rate of ATOM should be in the process of decreasing. It should be noted that although the parameters on the chain will guide the average block generation time, the actual block generation time will vary, which will also make the actual block rewards and expectations may not be completely equal.

2. Transaction fees. This part refers to the transaction fee included in the Cosmos Hub, and the pledged APR brought by the transaction fee will change with the usage of the network. If the validator produces a high-fee block, then the reward will also be higher than the low-fee block.The high inflation of ATOM is very unfavorable to users who only hold tokens without staking. In September 2022, Cosmos developer Tendermint launched at the Cosmoverse conferenceATOM Version 2.0 White Paper, but then the Cosmos Forumproposal was rejected. In terms of token economics, the proposal hopes to gradually reduce the issuance of ATOMs over a period of 36 months and mint tokens to subsidize the Cosmos Hub Treasury. It shows that the team intends to reduce the inflation of ATOM, but there is no plan that can be implemented yet.

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Since ATOM’s pledge exit needs to wait for 21 days, the liquidity pledge scheme that can be exchanged back to the original assets through transactions at any time is particularly important. There are also multiple liquidity pledge projects in Cosmos. Cosmos can be "one key chain", which also causes the ecology to be relatively scattered, almost all of which are on different public chains.

Stride

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Stride is a blockchain specially created for liquid staking. It currently supports the liquid staking of Cosmos ecology ATOM, OSMO, JUNO, STARS, EVMOS, LUNA, INJ, and plans to support all Cosmos ecology compatible with IBC v3. For the convenience of users, Stride can initiate a pledge without the native token STRD as a gas fee. Below is the relevant data for Stride.

TVL: Stride currently has a TVL of $29.83 million, mainly in ATOMs of $21.5 million.

LSD: stToken, rewards are accumulated in tokens.

Fee: 10%.

Liquidity and incentives: The Stride chain is currently only used to provide liquidity staking services, and there is no supporting infrastructure such as DEX, so it is necessary to provide liquidity on DEX of Osmosis or other chains. The main liquidity of stATOM is on Osmosis. The liquidity of the stATOM/ATOM trading pair is 23.94 million US dollars, and the APR is 27.3%.

pSTAKE Finance

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pSTAKE is developed by Persistence, and the pledge of ATOM also occurs on the Persistence chain. Both pSTAKE and Persistence issue their own native tokens. According to DefiLlama’s data, there are only two projects on the Persistence chain, pSTAKE and Dexter (a DEX), and Dexter only supports the transaction of three tokens, namely, Persistence’s native token XPRT, ATOM and pSTAKE’s pledged derivative stkATOM.

Supported assets: ATOM, BNB, ETH.

LSD：stkASSETs。

TVL: $5.69 million, including $3.12 million in ATOMs and $2.58 million in BNB, with ETH staking now suspended.

Fee: 5%.

Liquidity and Incentives: stkATOM/ATOM liquidity on Dexter is $1.01 million, APR 44.87%; Osmosis liquidity is $1.04 million, APR 39.56%.

Quicksilver

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Quicksilver is also a separate chain with no other ecology on it. With Quicksilver staking, you can choose your own verifier, while retaining the governance rights of funds.

Supporting assets: pledge of ATOM, OSMO, REGEN, STARS in the Cosmos ecosystem.

LSD：qAsset。

TVL: $1.86 million, of which ATOMs are worth $1.16 million.

Fee: 3.5%.

Liquidity: No liquidity on Osmosis, liquidity of stATOM/qATOM trading pair in Velocimeter on Canto chain is about $9000, APR 29%.

Stafi

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Stafi supports liquidity staking of multiple public chain native tokens, not specifically for Cosmos. On Cosmos, the liquid staking of ATOM is completed through the Stafi Hub chain.

Supporting assets: ETH, ATOM, MATIC, BNB, FIS, SOL, IRIS, HUAHUA.

LSD：rToken。

TVL: $34.42 million, mainly $32.6 million ETH, staked ATOMs worth $719,000.

Fee: 5%.

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summary

summary

At present, the four liquid staking protocols in the Cosmos ecosystem, Stride, pSTAKE, Quicksilver, and Stafi Hub, all have their own chains, and the values ​​of the pledged ATOMs are 21.5 million US dollars, 3.12 million US dollars, 1.16 million US dollars, and 719,000 US dollars respectively. ATOMs pledged through liquidity only account for 1.15% of pledged ATOMs. Compared with Lido itself on Ethereum, which accounts for 30% of the total ETH pledges, there is still a lot of room for growth in ATOMs’ liquidity staking. This may also be due to the fact that Cosmos The development of ecological DeFi is relatively backward, and liquidity tokens lack application scenarios.