pSTAKE Finance: Multi-chain liquid staking project expands BTC staking business

pSTAKE Finance is a multi-chain liquid staking project that launched its token in early 2022. The project initially provided liquidity token staking services for the BSC chain and the Cosmos ecosystem, with a total locked value of (TVL) approximately 7 million USD. Recently, pSTAKE has partnered with the BTC staking project Babylon to venture into BTC staking business. It is noteworthy that over 90% of pSTAKE's tokens are already in circulation, with a current market value of approximately 57 million USD.

Project Background and Financing History

The founder of pSTAKE has a background from Singapore and graduated from Nanyang Technological University. The financing history of this project is quite rich:

• November 2021: Secured $10 million in angel round financing, with investors including several well-known institutions.
• December 2021: Raised 10 million USD through public fundraising
• May 2022: Received strategic investment from the investment department of a well-known trading platform.

It is worth mentioning that the price of pSTAKE in the secondary market is currently close to its seed round financing price and lower than the public offering price.

Token Economics

The total supply of pSTAKE tokens is 500 million, officially launched in February 2022. Currently, over 93.6% of the tokens are in circulation. The remaining unreleased portion belongs to the team and is scheduled to be fully released by February 2025.

Business Expansion: Focus on BTC Re-staking

pSTAKE has recently shifted its focus to the BTC re-staking sector, collaborating with the BTC staking protocol Babylon. Babylon is a project founded by Stanford University Professor David Tse and has received support from several top crypto investment institutions.

This collaboration enables pSTAKE to provide users with BTC returns. After users deposit BTC into pSTAKE, they can obtain corresponding liquid staking tokens to participate in other DeFi projects to earn profits. Once the Babylon mainnet is launched, the BTC deposited in pSTAKE will be staked into the Babylon protocol, thereby earning additional returns.

Market Positioning and Competition

In the BTC re-staking sector, pSTAKE faces competition from other protocols. Several projects have already announced collaborations with Babylon, including B²Network, Merlin, Chakra, and Mind Network.

Compared to the Ethereum re-staking protocol, pSTAKE's valuation is relatively low. However, it is important to note that the current actual TVL of pSTAKE still has a significant gap compared to Ethereum re-staking projects.

Prospects and Risks

The advantages of pSTAKE lie in its low market value, high liquidity, and the newly added BTC stake business. However, the project also faces some potential risks:

1. The current TVL is relatively small, and future development largely depends on the success of Babylon.
2. Babylon is still in the testing phase, and the official launch will take some time.
3. The competition in the BTC re-staking sector is fierce, and it remains to be seen whether pSTAKE can gain a competitive edge in this field.
4. Business growth may not meet expectations.

Overall, pSTAKE, as a low market cap and highly liquid project, is striving to seek development through new business directions. Its future performance will largely depend on the overall development of the BTC re-staking market and its own competitiveness in this field.