So I’ve been diving into
pStake over the last few weeks and its dual token model is a welcomed and innovative mechanism to a staking platform. Now, first a dual token model just means that the project uses two different types of tokens. Usually this is a maneuver to help avoid issues with regulators down the road or to help divide a project’s ecosystem for better usability and growth. In the case of pStake it allows for closer mirroring of the operations of the underlying PoS network.
The dual token pStake model utilizes the tokens of pToken and stkToken respectively. The pToken is the wrapped token that represents the pegged PoS token and isn’t actually staked to the network. The stkToken is the wrapped token that represents the pegged PoS token that is staked to the network. This makes stkToken the yield generating token within the network and through this model it creates greater liquidity for stkTokens in Defi projects.
The pToken and stkToken are both redeemable at a ratio of 1:1 for the assets deposited through
pStake.
