Stake Persistence with Kiln, enterprise-grade staking
What is Persistence?
Persistence is a layer 1 blockchain powering an ecosystem of DeFi dApps focused on unlocking the liquidity of staked assets. The native token of the Persistence blockchain is XPRT. Persistence is used as the governance token of the chain as well as in staking to keep the protocol working efficiently. Persistence is built on the Cosmos protocol and acts as the central gateway for DeFi and liquid staking.
What is a liquidity protocol?
In Decentralized Finance, investors seek out traditional financial investment instruments but while also staying in the decentralized space. Liquidity protocols are the most basic examples of this concept; these dApps are essentially decentralized market makers.
Market makers are providers of liquidity, generally, this would be done by exchanges with huge reserves of centralized assets like Binance and Kraken. As time went on, people who wanted to purchase and use crypto didn’t want to rely on third parties and looked for a decentralized alternative to exchanges.
Liquidity providers offer pairs to a smart contract of crypto and (usually) stablecoins from which users can purchase coins from either pool and pay transaction fees to those who provide the liquidity. Everyone providing crypto to the pools gets a cut of these transaction fees in reward for their capital provision. This is called yield farming or liquidity mining.
What is staking?
In a Proof-of-Stake blockchain, Staking consists of locking native tokens to earn the right to secure a chain, and to be rewarded while doing so. It has overtaken mining as the primary way to secure blockchains.
By locking a protocol’s native tokens (ie XPRT) to give “validators” the right to secure a chain. Validators propose new blocks or attest other validators’ blocks, gaining rewards for doing so.
Why should you stake your assets?
When you stake your tokens you can get secure and predictable rewards through a process that is well-calculated and efficient. Tokens produced during the process of consensus come from the blockchain’s natural inflation of its currency. This is something that can be foreseen. While staking XPRT you have the opportunity to make rewards while securing the network.
- Put your treasury to work
- Diversify and earn
- Bring new opportunities by enabling your users to earn staking rewards
How to stake Persistence with Kiln?
The minimum amount you will need to stake Persistence is 1 XPRT. Persistence validators must send this token to generate keys and start validating. To stake with Kiln you will need to:
- Install the Keplr wallet extension, if possible with a hardware wallet, and deposit your XPRT tokens
- From the wallet extension, access the Keplr dashboard
- In the left panel, select the "Persistence" network
- Head to the Staking tab in Keplr dashboard
- Search for the "Kiln" validator
- Select the amount you wish to stake, click on "Delegate"
- Confirm the transaction on Keplr wallet
- You will begin receiving rewards on your staked XPRT after 21 days
What are the rewards associated with staking XPRT?
Rewards on XPRT come from fees and new coins brought into the ecosystem through consensus. By staking XPRT you can earn 24,8% GRR*.
Why should you stake your XPRT with Kiln?
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake Persistence, and to whitelabel XPRT staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, data and commission management.
We are serving thousands of businesses worldwide so that everyone can securely and seamlessly stake their coins from our dashboard. Other than our dashboard you can also stake from a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange or just their favorite investment app. Kiln makes staking Persistence easy, secure, and accessible to everyone.
- Stake XPRT in 1 click
- 99% uptime guarantee
- Manage all your XPRT stakes and rewards from a single dashboard
- Non-custodial, work with your existing custodians XPRTutions e.g.Fireblocks
- SOC 2 Type II certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
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Stake Persistence FAQ
What does Proof-of Stake mean?
Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Through PoS, validators can contribute to the block production of a chain while keeping environmental concerns to a minimum, which is becoming an increasingly large issue in Proof-of-Work.
By staking capital rather than energy, validators risk losing a portion of their value and future potential for staking by misbehaving while creating blocks. This incentivizes collaboration and minimizes malicious activity in the consensus process.
What are the advantages and disadvantages of liquidity for cryptocurrencies?
Liquidity is necessary for any blockchain ecosystem. Without it there would be no access for new users and investors to get involved in things like governance and utility within the network. Accessible liquidity is essential for the functioning and decentralization of a blockchain.
Liquidity depends on the amount of tokens that are minted into a system at its conception, and the rate of inflation from mining and staking.
However, liquidity is not without its issues. Inflation causes the price to decrease as it makes assets more easily accessible. If the price of an asset is depressed, it takes away from the value of the network and puts off new investors.
Too much active liquidity can also lead to lowered competition in staking or exchanging tokens on centralized and decentralized exchanges.
Developers can avoid excessive accumulation of tokens through mechanisms like staking and liquidity mining. Asset holders can lock up their tokens for periods of time and offer them to other users who may need them for other actions. This takes those assets out of the market and keeps them in a safe and manageable environment.
When will I receive XPRT rewards?
Staking XPRT will earn you rewards for every block your stake helps to produce. A block is produced every 6 seconds.
Does interest compound when staking XPRT?
Yes, rewards are added to your stake and can be withdrawn at any time instantly.
What are the risks associated with staking XPRT?
Penalties while staking XPRT exist for consistent downtime and double signing. This comes in the form of slashing and the percentage slash comes down to the amount of downtime and severity of the double signing.
Is there a minimum and maximum amount to stake for Persistence?
The minimum amount to stake Persistence is 1 XPRT, however, the ability to stake is dependent on the weight of your vote and therefore the amount of XPRT you are staking. Only the top 75 Persistence validators by vote weight are allowed to make rewards from consensus building. It's the case of Kiln.
Do I maintain custody of my XPRT tokens? Is XPRT staking non-custodial?
While you may self-custody your staked XPRT (ideally using a Ledger hardware wallet), you may choose a third-party custodian to control the withdrawal of your staked XPRT (ie Fireblocks).
What is the lockup period to stake Persistence? When can I unstake and withdraw my XPRT?
There is no lockup period for XPRT and you can retrieve your Persistence tokens immediately.
How do rewards and penalties work?
Every slot the validator is expected to sign attestations. If submitted attestations are good, the validator receives rewards, otherwise it receives penalties. In case the validator is offline it will also receive penalties.
What is the average block time on Persistence?
The average block time on Persistence is ~ 6 sec.
What is a Gross Reward Rate (GRR) and how is it different from a Net Reward Rate (NRR)?
In the context of Proof-of-Stake blockchains, the gross reward rate (GRR) refers to the total or gross amount of rewards earned from staking before deducting any fees or expenses. This is a reward rate that fluctuates with the operations of the protocol and the performance of validators, it is not set by Kiln. The net reward rate (NRR), on the other hand, takes into account the deductions or expenses, providing a measure of the actual rewards received after subtracting fees or costs.