What is pSTAKE Staked ATOM (STKATOM)?

Deep Dive

1. Purpose & value proposition

STKATOM solves the liquidity vs. rewards dilemma in Proof-of-Stake (PoS) chains. By staking ATOM via pSTAKE, users receive STKATOM tokens, which:
- Represent their staked ATOM + future rewards
- Can be used as collateral in DeFi (e.g., lending, liquidity pools)
This contrasts with native staking, where assets are locked and illiquid. The protocol targets Cosmos ecosystem participants seeking to maximize capital efficiency.

2. Technology & architecture

pSTAKE uses a dual-token model:
- Staked tokens (STKATOM): ERC-20 or BEP-20 representations of staked ATOM, compatible with Ethereum/BSC DeFi
- Governance token (PSTAKE): Manages protocol upgrades and fee structures
Staking occurs via pSTAKE’s smart contracts, which delegate ATOM to validators. Rewards compound automatically, reflected in STKATOM’s value over time.

3. Tokenomics & adoption challenges

Key metrics (as of June 2025):
- Circulating supply: 3,989 STKATOM (~$416M market cap)
- Turnover ratio: 1.13 – high liquidity relative to market cap (CoinMarketCap)
However, the ultra-low supply (3,989 tokens) and extreme price volatility (e.g., 1,687,983% 1-hour swings) suggest concentrated ownership and thin liquidity pools. This could amplify slippage risks when trading large amounts.

Conclusion

STKATOM offers Cosmos stakers a path to DeFi composability but faces scalability hurdles due to its niche supply structure. How might cross-chain interoperability upgrades impact STKATOM’s utility against native Cosmos liquid staking solutions?