Include pSTAKE’s stkATOM for DYM Airdrop

Community Huddle
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Summary

This is a proposal request to include stkATOM, pSTAKE-issued Liquid Staked ATOM, for the recently launched $DYM genesis rolldrop.

Introduction

pSTAKE Finance is a liquid staking protocol developed by Persistence Labs. With pSTAKE, you can securely stake PoS tokens to earn staking rewards and receive staked underlying representative tokens (stkTokens) to explore additional yield opportunities across DeFi. At present, pSTAKE supports Cosmos Hub (ATOM), Binance Chain (BNB), and Osmosis (OSMO) networks’ native tokens, with DYDX, Persistence (XPRT), and Celestia (TIA) support coming soon in Q1 2024.

pSTAKE launched the first ever ATOM liquid staking solution (stkATOM ERC-20 on Ethereum) in 2021, which reached ~$35M+ in ATH TVL. In January 2023, pSTAKE launched its non-custodial Cosmos native implementation of stkATOM on the Persistence chain, which currently boasts ~$7M TVL. One can learn more about stkATOM here.

Context

​​Yesterday, on 2 January 2024, the highly anticipated Dymension Genesis Rolldrop was officially announced. The Dymension rolldrop snapshot was meticulously taken on December 19, 2023, encompassing various ecosystems, including Cosmos for Cosmos Hub (ATOM stakers and stATOM holders) and Osmosis (OSMO stakers).

Proposal

We believe in a future where Liquid Staked Tokens (LSTs) will become the predominant medium of exchange and utility in DeFi (over native tokens). To achieve the true premise of liquid staking in Cosmos, stTokens by Stride and stkTokens by pSTAKE will have to mirror all utility of their native tokens like liquidity, DeFi usage, airdrop allocation, etc.

Including LSTs in airdrops presents projects with a unique opportunity to attract the most active and power DeFi users in Cosmos. We’re thrilled to learn that Stride, the leading Liquid Staking Provider for ATOM, is already on board, and stATOM holders are included in the DYM airdrop.

Presently, a notable hindrance to the adoption of liquid staking is the absence of airdrop incentives. The fact that Dymension has pioneered this approach is significant and sets a precedent for other projects to follow suit.

We suggest that stkATOM by pSTAKE also gets added to the DYM Rolldrop alongside stATOM by Stride.

Why should stkATOM be included too?

sktATOM represents 12% of the total liquid-staked ATOM currently and can be used in 7 DeFi protocols across Cosmos. Currently, ~2500+ users have liquid staked ~591,431 ATOM on pSTAKE as of writing this post. Airdropping DYM to stkATOM holders in addition to Stride’s stATOM holders can have various benefits for the Dymension Ecosystem:

  • Attract the most active and power DeFi users in Cosmos
  • Cover a broader and more diversified user base
  • Set a precedent of airdropping genesis tokens to multiple liquid staking providers in Cosmos
  • Help grow the liquid staking pie in Cosmos
  • Further align with the ATOM Economic Zone

How can stkATOM be included in the Dymension rolldrop now?

Mechanics

We propose adopting a method similar to that of Stride to include stkATOM in the Rolldrop. This entails setting a minimum holding requirement of 1 stkATOM and a maximum of 5000 stkATOM. The accounting method will mirror the Stride approach, wherein stkATOM inflows to user addresses will be combined with outflows from those addresses to determine the user-controlled amount as of the snapshot date. This calculation will also encompass stkATOM provided as liquidity or deposited as collateral.

Distribution

With the ongoing DYM Rolldrop claim process, we suggest either of the following approaches for the inclusion of stkATOM holders:

  • Allocation from the Unclaimed Balances: Incorporate stkATOM holders by allocating DYM tokens from the unclaimed balance before the reallocation to eligible addresses. This ensures that stkATOM holders can participate seamlessly in the Rolldrop claim process.

  • Inclusion in Rolldrop Season 2: Alternatively, consider including pSTAKE, with stkATOM, in the second season of the Rolldrop. This approach allows for a dedicated phase to accommodate stkATOM holders and ensures an organized and fair distribution process.

The pSTAKE contributors are dedicated to providing any necessary support to facilitate this inclusion.

Provide Feedback

We are optimistic that incorporating stkATOM in the snapshot will strengthen Dymension’s engagement with the pSTAKE, Persistence, and ATOM communities.

We eagerly anticipate receiving feedback from the Dymension community and contributors regarding the potential inclusion of pSTAKE’s issued stkATOM in the DYM rolldrop and its subsequent distribution.

15 Likes
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If statom is in the game, stkatom (and qckatom) must too. Both are staked atom so why stkatom would be exclude of this airdrop? I swap my stkatom to atom for traditional staking because of as liquid staker, I was exclude of namada ans now dymension genesis drop. Liquid staking is now part of the cosmos ecosystem and would be considered by project airdroping token.

13 Likes
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Unfortunately, due to the time constraints/resource requirements this won’t be added as part of the Genesis Rolldrop.

To the pSTAKE core team I suggest working with Stride, Milkyway and other liquid staking token providers to aggregate data so new protocols don’t have to go looking for each missing piece. I have found the data aggregation process for this to be quite limited in Cosmos as compared to Ethereum.

10 Likes
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Please don’t include anything new in the current round as that will complicate things, you can add them in the next drop.

4 Likes
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Pretty straightforward answer here: YES

Why? Simple! If Stride’s stATOM is included, including pSTAKE’s stkATOM is the next correct move. Otherwise, you’ll directly support the centralization of liquid-staked ATOM into the hands of one provider. Plus, any other liquid staking providers such as Quicksilver for instance.

If Dymension supports decentralization, this is a no-brainer. Let’s do it!

12 Likes
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Would love to see ATOM LSTs included in Cosmos airdrops. Would improve capital efficiency in Cosmos and allow new Cosmos SDK chains to target active defi users, if that was important to them.

pStake, Stride, etc making it easy for new Cosmos SDK chains to to include their token holders in new airdrops may make it more likely for them to be included.

The inclusion of Bad Kids NFT holders in recent airdrops shows that airdrops are becoming more sophisticated, and not just going to ATOM and OSMO stakers.

12 Likes
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I believe implementing this proposal would encourage adoption of liquid staking tokens such as stATOM and stkATOM, and attract more users to explore the DeFi ecosystem in Cosmos.

It would be wonderful to witness this proposal being approved and going live on the chain. Moreover, since stATOM has been accepted as part of the airdrop criteria for $DYM, stkATOM should also be given the opportunity to be included.

fair competition = more better products

7 Likes
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Strongly in favor of this proposal. Including pSTAKE’s stkATOM in the DYM rolldrop is not only fair but essential for maintaining a decentralized ecosystem in Cosmos. As mentioned, Stride’s stATOM is already part of this initiative, which sets a precedent. To maintain a balanced and diverse environment, it’s crucial that other liquid staking solutions like pSTAKE’s stkATOM are also considered.

This move aligns perfectly with the ethos of decentralization that Dymension promotes.

7 Likes
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Hey @Shaolin, appreciate your prompt response. We fully understand and respect the time and resource constraints at this point.

We agree that having more accessible, public-facing aggregated data would benefit new protocols, and we’re eager to foster a collaborative effort among all Liquid Staking providers. We’re actively planning and working towards enhancing this aspect.

pSTAKE community strongly advocate for the inclusion of stkATOM holders, building on the precedent set by the incorporation of Stride’s stATOM. From our end, we’re more than willing to support this initiative by providing any necessary data or assistance required for its seamless implementation.

To ensure a fair and non-disruptive process, as highlighted above, we propose not to impact the current allocation and ongoing rolldrop season 1 claim process. We suggest either reallocating a portion of the unclaimed amount to stkATOM holders or committing to include them in the next season, aligning with your overall plans.

pSTAKE contributors are happy to work closely and collaborate on this, offering support to reach a beneficial and fair solution for the ATOM ecosystem. Looking forward to working together on this!

6 Likes
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Totally in favour. StAtom has spearheaded the Liquidi Staking mechanism to Cosmos Ecosystem and dersvers a higher allocation for deepening liquidity to cosmos ecosystem

4 Likes
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Totally in favour. I believe we should act with integrity and equity and appreciate all Atom supporters not only specific projects as Stride.
It would be great to include StkAtom holders, i believe it would be beneficial for all sides.

4 Likes