KuCoin AMA With pSTAKE Finance (PSTAKE) — Unlocking the Future of Bitcoin Yield and Liquid Staking

Dear KuCoin Users,

Time: August 14, 2024, 12:00 PM - 1:21 PM (UTC)

KuCoin hosted an AMA (Ask-Me-Anything) session featuring the Co-Founder of pSTAKE Finance, Mikhil Pandey, in the KuCoin Exchange Group.

Official Website: https://pstake.finance
Whitepaper: https://docs.pstake.finance/

Follow pSTAKE Finance on X, Telegram and Discord

Q: Can you introduce yourself and share more about pSTAKE Finance?

Mikhil: Hello everyone! Again, it’s a pleasure to be here today and speak with the KuCoin community. I’m Mikhil Pandey, the Co-Founder of pSTAKE Finance. I’m an engineer by education and have been building in crypto for 4+ years now, since the start of pSTAKE.

Besides crypto, I love football and am a big Manchester United fan.

I’m a massive Bitcoiner and genuinely believe that it is the future of finance because of what it offers: accessibility, hope, freedom, and equal financial opportunity.

pSTAKE Finance is a Bitcoin Yield and liquid staking protocol, backed by Binance Labs. We’re built on top of Babylon, a Bitcoin staking protocol. You could consider us to be the Etherfi of Bitcoin for an easy analogy.

Our mission is to make Bitcoin yield-generating for all as securely and reliably as possible.

$PSTAKE is the governance and incentivization token of the pSTAKE Finance protocol. It has some of the most prominent investors, including Binance Labs, DeFiance Capital, Spartan Group, Coinbase Ventures, and Kraken Ventures.

You can learn more about pSTAKE on our Website and Telegram account.

Q: What is Bitcoin Staking, and how does it come into play? Is it similar to wBTC?

Mikhil: Bitcoin Staking simply implies locking up Bitcoin to offer economic security to those in need (app chains). Bitcoin is the biggest, most universal crypto asset. It has withstood the test of time, hard forks, development, and crypto's progression.

By offering Bitcoin staking, BTC becomes more capital efficient and, for the first time, gets native yields.

Bitcoin Liquid Staking solves the problem of lock-up periods (like those in ETH) and allows for extra DeFi yields while remaining liquid.

pSTAKE’s Bitcoin Liquid Staking solution is built in collaboration with Babylon. BTC deposits into pSTAKE are staked via Babylon to generate yields. Users will get a yield-generating liquid yBTC token that can be used in DeFi for additional yields.

pSTAKE will auto-compound yields generated through Babylon. Deposit BTC → Earn in BTC.

I recently wrote an in-depth thread regarding this matter here.

Q: Can you tell us about the recent launch of pSTAKE Bitcoin Liquid Staking v1?

Mikhil: We recently launched pSTAKE v1 on mainnet. This is the first grand step in pSTAKE’s mission to provide yield to BTC holders.

BTC liquid staking v1 on pSTAKE includes BTC deposits. The idea is to get pre-deposits before Babylon launches to stake as much BTC as possible into Babylon.

For security reasons, pSTAKE has set its maximum cap at 50 BTC and will adjust the limits accordingly, so be sure to follow our social channels like Twitter and Telegram to stay up-to-date.

Any yield generated through the Babylon protocol (direct incentives/points) will be passed straight to pSTAKE users. In addition to the yield generated by Babylon, the pSats Drop program provides another exciting source of yield.

Here’s some more info about pSTAKE Bitcoin Liquid Staking v1.

Q: How does pSTAKE compare to other DeFi protocols?

Mikhil: That’s an interesting question. From my side, we are staying true to our roots and beliefs in fixed income and Bitcoin. We see BTC staking as the first layer of building blocks for the future of finance and that’s where pSTAKE comes into picture.

I can give an example so that the community can better understand things too.

*ETH Restaking*- Lock up ETH LST on Ether.fi to secure AVS via EigenLayer -> Earn AVS yield + others

*BTC Staking* - Lock up BTC on pSTAKE to secure PoS chain via Babylon -> Earn app chain staking rewards + others

We want to make the biggest crypto asset more active and yield-generating for all. Here’s a graphic image if you’re a visual learner.

Q: What's next on the roadmap for pSTAKE?

Mikhil: Offering reliable Bitcoin yields to everyone in a seamless, easy to use manner. Lesser clicks, higher BTC yields.

v1 → Deposit Bitcoin

v2 → yBTC issuance and $PSTAKE pSats + DeFi yields + DeFi points

v3 → First yield source via Babylon

v4 → Additional yield sources besides Babylon

If you want to have a deeper understanding about this matter, here’s some handy information resources and you may also check here.

We’ve been building liquid staking since 2019 and we’ll continue to do so for the future, but with Bitcoin at the forefront!

Q: What is yBTC, and what utility will it have in DeFi?

Mikhil: $yBTC is a yield-generating Bitcoin token (exactly similar to wstETH by Lido on Ethereum. yBTC represents the Bitcoin yields through Babylon. yBTC will also have deep liquidity and DeFi utility.

Our first focus after our v1 launch (BTC deposits + pSats points program) will be the issuance of the yBTC token (v2), which represents users' yield positions. Right after that, the main priority will be to build liquidity for yBTC on leading DeFi ecosystems like Ethereum, EVM L2s like Arbitrum, Optimism, Mantle, X Layer (And more), and prominent Bitcoin L2s like Bitlayer, Merlin, Core DAO, Botanix, and more.

Q: What is the $PSTAKE token?

Mikhil: $PSTAKE is an ERC-20 native token on Ethereum that had its TGE in 2021.

Like LDO or ETHFI, PSTAKE is the governance and incentivization token of pSTAKE Finance. $PSTAKE governance has the final say in key protocol decisions, such as launching new LSTs, incentivizing pSTAKE LSTs, protocol fees, decentralized stake delegation mechanism selection, revenue share, and more.

One essential part of pSTAKE's latest roadmap is revisiting the $PSTAKE Tokenomics to be more cohesive with BTC yields. Here’s some curated info:

Q: Having a solid marketing strategy is crucial for the success of any project. What is your plan for expanding your relationships and building communities in both English-speaking and non-English speaking countries? Are there any limitations or restrictions that you need to consider?

Mikhil: Although Bitcoin is a universal and global market, we’re cognizant that a big chunk of interest comes from Asia.

Hence, we’re focusing on China, Korea, and Vietnam for our next leg of community growth.

At the same time, we continue to fortify pSTAKE’s presence globally to grow with the same motives: TVL and brand recognition.

Q: How does pSTAKE Finance's partnership with Binance Labs and other prominent investors contribute to the project's success?

Mikhil: Having supportive investors like Binance Labs, DeFiance Capital, and more is a huge boost.

Not only do they help with and collaborate on things like GTM and Marketing but also provide timeless advice in terms of the multiple factors that are at play in this industry.

Q: Can you provide insights into your project's development roadmap? What major milestones or upgrades can users and investors expect in the coming months or years?

Mikhil: Here are the 5 huge things coming next for pSTAKE:

1. Support for Babylon mainnet

2. SatDrop Campaign and pSats (points) launch

3. $yBTC (pSTAKE-issued yield BTC token on Ethereum) launch for additional DeFi points + yields

4. Self-custody Bitcoin Liquid Staking launch

5. $PSTAKE tokenomics revamp

Full steam ahead!

Q: What inspired the creation of pSTAKE Finance, and how does it aim to revolutionize the liquid staking landscape?

Mikhil: We have been relentlessly building since 2019, staying true to our foundational thesis of staking being the crypto equivalent of fixed income.

We (and our commitment to building) resonate a lot with some of the foundational values of Bitcoin: long-term focused, true to its roots, humble, and here to bring about a positive impact.

Our competitive edge comes from our time building in the industry. Having pioneered PoS liquid staking (Cosmos), it has given tremendous expertise. Being early to liquid staking and building over multiple cycles has given us a thick skin and a long term mindset as builders.

Q: Who is your ideal consumer for your product and did you take into account the community feedback and requests in the development process to generate new ideas? Failing to understand the target audience and clients often leads to project failures.

Mikhil: Anyone that holds $BTC is an ideal consumer for us.

Bitcoin is the biggest, most universal crypto asset. It has withstood the test of time, hard forks, development, and crypto's progression.

In its 15+ years of existence, Bitcoin has always been a passive/speculative asset class. There were no BTC yields besides wBTC, which had the same DeFi primitives (LPing, lending, etc.) as every other crypto token.

In a hyperinflationary world where market returns are becoming less volatile each cycle, Bitcoin yields are the need of the hour.

Q: Can you share your social media links so we can keep ourselves updated?

Mikhil: Here’s the link to our X (Twitter), Discord, Telegram and Website.

Q: How does pSTAKE Finance plan to increase adoption and usage of the platform in the long term?

Mikhil: Our focus will be on two main things to retain existing users and onboard newer ones:

1. Expanding the $PSTAKE points program with a Season 2 to give our early adopters boosted multipliers, exciting opportunities, and special pSTAKE privileges.

2. Integrating our BTC yield-generating token everywhere in the crypto ecosystem to onboard new users, get BTC deposits, and democratize Bitcoin yields for all.

Q: Can you list 3 great features that put your project ahead of your competitors? What are the competitive advantages that you trust yourself with the most?

Mikhil: On a protocol level, it is our technical/product prowess and marketing/distribution abilities that give us a competitive edge.

Technology/Product:

1. yBTC is the only Bitcoin LST that is yield-generating with an exchange rate model similar to wstETH or listaBNB

2. Superior technical knowledge of PoS chains, especially Cosmos app chains, to ensure robust and secure product mechanisms

3. BTC delegation mechanism that actively optimizes for higher yields

4. No click BTC auto-compounding

5. Integrating various BTC staking yields sources into a single token (yBTC)

Marketing/Distribution:

1. Unique, value-aligned approach towards marketing and community compared to all Bitcoin Ecosystem projects

2. Focus on benefits over features

3. Light hearted and fun to stand out in this attention economy

4. Dedicated distribution strategies for top-down and bottom-up channels like Media, PR, KOLs, Events, etc.

Q: What is the income model of pSTAKE Finance? Many projects like to talk about "long-term vision and mission," but what are your short-term goals? What are you focusing on right now?

Mikhil: Short term goal is to give secure access to Bitcoin yields via Babylon to as many people as possible. You may check here.

Q: What is your strongest advantage that you think will make your team leading the market?

Mikhil: 1. Our 4+ years expertise of liquid staking

2. Our long-term vision of building and surviving in this space

3. Our belief in Bitcoin

Q: Beyond your core features, what's a hidden gem in your project that most users might miss?

Mikhil: $PSTAKE is the ONLY Bitcoin Liquid Staking token that is live in the industry.

Q: Do you have tutorial videos so we can get to know your project more clearly or do you have a YouTube channel or something? Can you share it with us?

Mikhil: We have a very active YouTube channel. Feel free to check and subscribe here.

🎁 Participate in the pSTAKE Finance AMA quiz now for a chance to win 10 USDT.

The form will remain open for five days from publishing this AMA recap.

KuCoin and pSTAKE Finance have prepared a total of 2,000 USDT to give away to AMA participants.

1. Pre-AMA activity: 800 USDT

2. Free-ask section: 50 USDT

3. Flash mini-game: 400 USDT

4. Post-AMA quiz: 750 USDT

Sign up for a KuCoin account if you haven’t done so yet, and ensure you complete your KYC verification to be eligible for the rewards.

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