pSTAKE Finance: A New Direction for Multi-Chain Liquid Staking Projects

pSTAKE Finance is a multi-chain liquid staking project established 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) of approximately 7 million USD. Recently, the project has collaborated with the BTC staking project Babylon to venture into BTC staking business, injecting new momentum into its development.

Project Overview

More than 90% of pSTAKE's tokens have entered circulation, with a current market value of approximately $57 million. The project's founder has a background in Singapore and graduated from Nanyang Technological University. In terms of financing, pSTAKE raised $10 million in an angel round of funding in November 2021, with investors including well-known institutions such as Galaxy Digital and Coinbase Venture. In December of the same year, the project raised another $10 million through a public offering. In May 2022, the investment department of a well-known trading platform made a strategic investment in pSTAKE, although the specific amount was not disclosed.

It is worth noting that the price of pSTAKE tokens in the secondary market is currently close to the seed round financing price, which is lower than the public offering price. This situation provides potential entry opportunities for investors.

Token Economics

The total supply of pSTAKE tokens is 500 million, of which 93.6% has already entered circulation. The remaining unreleased portion belongs to the team and is scheduled to be fully released by February 2025. The tokens held by the team have undergone an 18-month lock-up period, after which they will be released linearly over a period of 18 months.

Business Expansion

pSTAKE's recent business focus has shifted to the BTC re-staking field, reaching a cooperation agreement with Babylon. Babylon is a highly regarded Bitcoin staking protocol founded by Stanford University Professor David Tse, which has received $96 million in investments from several top crypto investment institutions.

This collaboration allows pSTAKE to provide users with returns on Bitcoin. After users deposit BTC into pSTAKE, they will receive corresponding liquid staking tokens, which can be used to participate in other DeFi projects and earn returns. Once the Babylon mainnet is launched, the BTC deposited into pSTAKE will be staked in the Babylon protocol, generating additional returns.

Market Positioning and Prospects

Compared to Ethereum's re-staking protocol, pSTAKE's valuation is relatively low. Factors affecting its valuation include narrative popularity, business data, liquidity premium, financing valuation, and competitive advantage in the sector. Although pSTAKE's current actual TVL is small and there is a significant gap compared to Ethereum's re-staking projects, its undervaluation and new business direction may present opportunities for future development.

Conclusion

1. pSTAKE currently has a low market value, high token liquidity, has gone through a complete bear market cycle, and the market price is close to the early financing price.

2. The newly added BTC re-staking business has brought a hot narrative to the project and is expected to drive rapid growth in business scale.

3. Low market value, high liquidity, new business direction, and strategic investment background give pSTAKE potential development advantages.

4. The main risk lies in the fact that pSTAKE currently has a small TVL, and its future development largely depends on the success of Babylon. At the same time, the competition in the BTC re-staking track is fierce, and it remains to be seen whether pSTAKE can stand out in this competition.