DeFi

pSTAKE To Launch stkATOM On January 12, 2023

Key Points:

Cosmos ecosystem Liquid staking protocol pSTAKE announced that stkATOM would debut in the Interchain on Persistence on January 12, 2023.
Prior to the Persistence Core-1 chain halt and the incident on November 6, where a bad actor manipulated the exchange rate of stkATOM to ATOM on the Persistence Core-1 Chain Mainnet, stkATOM’s initial launch date of November 8, 2022, was postponed.

Cosmos ecosystem liquid staking protocol pSTAKE announced that stkATOM would launch in the Interchain on Persistence on January 12, 2023.

Previously, stkATOM was scheduled to launch on November 8, 2022, but it was delayed by a Persistence Core-1 chain halt and an incident in which a bad actor skewed the exchange rate of stkATOM to ATOM on the Persistence Core-1 Chain Mainnet on November 6.

The Persistence Core-1 chain stopped at block height 8,647,535 for a period of about 4.5 hours. Due to a node nondeterminism problem brought on by the validators’ use of various Golang versions, the chain came to an end. As a result, the controller chain (Persistence Core-1) on the host chain (CosmosHub) closed the ICA (Interchain Account) channel it had established. The LS (Liquid Staking) Module for ATOM from pSTAKE continued to operate normally.

From here on, the pSTAKE team offers three options in consideration:

Option 1: Launch with a non-1:1 stkATOM:ATOM exchange rate
Option 2: Do a chain upgrade to start from scratch with a new stkATOM token
Option 3: Request the Core-1 chain team to upgrade the chain for a one-time mint of 45 additional stkATOM to reset the exchange rate and distribute the stkATOM to the bad actor’s Persistence address

The pSTAKE team chose this approach after giving it great thought and weighing all of the alternatives since it is the only one that prioritizes the three key values of pSTAKE: Security, User Experience, and Utility at the forefront. The v6 PersistenceCore upgrade already includes the risk mitigation described above, which was done by the pSTAKE team.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.