What is Pi Staking?
Pi Staking is the pioneering permissionless staking protocol developed for PulseChain, allowing node operators to launch more cost-effectively and efficiently using the PPY token. Our services cater to both node operators and liquid stakers.
With Pi Staking, a node operator can:
Launch their node with 16,000,000 PLS and collateral in PPY tokens, making it a significantly more accessible option compared to traditional methods.
Earn rewards on their staked PLS, their staked PPY, and receive an operating fee for running a node.
Become a validator with just a few clicks.
Tokens and UtilitystPLS
The Liquid Staking Token
Upon depositing PLS into the Pi Staking deposit pool, users receive a synthetic derivative token called stPLS. This token represents the staker’s deposit plus accumulated rewards over time, offering liquidity similar to PLS. Users can:
Hold stPLS to accrue staking rewards.
Sell stPLS for liquidity or trade.
Use stPLS in DeFi applications such as Liquid Loans and POWERCITY to earn additional yield.
If excess PLS is available in the deposit pool, users can exchange stPLS back for PLS, which effectively burns the stPLS and withdraws PLS from the pool. Alternatively, stPLS can be traded for other tokens on participating protocols.
PPY
The Protocol Token
Project Pi Yield (PPY) is a PRC20 token that serves as the backbone of the Pi Staking protocol. Node Operators use PPY to launch Pi Pools – complete PulseChain validator nodes paired with liquid staking funds for as low as 16,000,000 PLS.
Node Operators must stake a minimum amount of PPY as a guarantee of good behavior. Initially, this minimum is set at 25%(USD amount) of the 16M PLS stake but can be as high as 150%(USD amount). The more PPY staked, the greater the monthly PPY rewards. These rewards can be reinvested to launch new validator nodes or request PLS delegation from liquid stakers onto existing Pi Pools.
Should a Node Operator perform poorly, resulting in a loss of rewards, PPY staked as insurance will compensate the stakers. This mechanism distributes the risk of pairing with under-performing operators and minimizes potential losses. Slashed PPY can be sold at a discounted rate, with the proceeds in PLS going to liquid stakers.
PPY holders are also integral to the Pi DAO, allowing them to propose and vote on various governance matters like inflation schedules, community rewards, and protocol adjustments.
💭FAQWhat is PulseChain?
PulseChain is a blockchain platform developed by Richard Heart as a fork of Ethereum. It aims to enhance the Ethereum blockchain's functionality by increasing its efficiency and scalability. Unlike Ethereum, which is a Layer 1 (L1) blockchain, PulseChain offers functionalities that align it closely with both Layer 1 and Layer 0 (L0) frameworks. This unique positioning allows for the creation of various L1 blockchains on top of PulseChain, each benefiting from its underlying features, thus enabling developers to customize their L1 solutions effectively.
What are LSDs (Liquid Staking Derivatives)?
LSDs on PulseChain represent an innovative approach to blockchain scalability and functionality. They allow for the creation of new L1 blockchains that operate efficiently and cohesively within the broader PulseChain ecosystem. LSDs can be envisioned as a network of interconnected blockchains, each optimized for swift transaction processing and fully compatible with each other, exemplifying a cutting-edge solution in blockchain scalability.
What is Staking for Node Operators?
In Proof of Stake blockchains, validator nodes validate the blockchain and, in return, earn staking rewards. On PulseChain, a node operator is required to set up their hardware for validating the chain and stake a minimum of 32,000,000 PLS. The staked PLS is locked during the staking period and accrues rewards. After this period, which can last up to a year, both the staked PLS and any staking rewards are returned to the node operator.
What is Liquid Staking?
Liquid staking is an alternative to traditional staking methods. It allows individuals to stake any amount of PLS, PulseChain's native token, and in return, receive immediate liquidity through a wrapped PLS token. This wrapped token can be used similarly to regular PLS and can be exchanged back to standard PLS anytime.
How is Pi Staking Different from Lido?
Pi Staking distinguishes itself from Lido in several ways:
Lido is known for its effective liquid staking solutions but tends to centralize its hardware providers.
While Lido focuses on providing liquidity to stakers, Pi Staking extends its scope to support the development and proliferation of LSDs within the PulseChain ecosystem.
Pi Staking is a permissionless staking protocol that decentralizes hardware operations through community incentives and actively supports the integration of LSDs, addressing both liquidity and broader ecosystem growth challenges.
How Was Pi Staking Conceptualized?
The Project Pi team, avid supporters of PulseChain, Hex, and the entire associated ecosystem, conceptualized Pi Staking. Motivated by their passion for PulseChain and its potential, they identified a need for a protocol that not only addressed liquid staking challenges but also supported the growth and flourishing of LSDs within the PulseChain ecosystem. Recognizing the absence of a suitable solution, the team initiated Pi Staking to empower the community and ensure the robust development of PulseChain.