Why do I need TOKENs¶
Why do i need pTOKENs¶
pSTAKE uses a dual token model that closely mirrors the operations of the underlying PoS network. The dual token model solves specific problems that exist or can arise with a single token model. pSTAKE's dual token model results in better composability and liquidity for stkTOKENs in DeFi protocols. pSTAKE issues the following assets to its users' ERC-20 wallets:
pTOKEN: A wrapped unstaked token that refers to an ERC-20 based 1:1 pegged representative of a PoS token that is not staked on the underlying network.
stkTOKEN: A wrapped staked token that refers to an ERC-20 based 1:1 pegged representative of a PoS token that is staked on the underlying PoS chain, which is integrated with the pSTAKE application.
The pTOKEN and stkTOKEN are redeemable 1:1 for the underlying PoS asset deposited with pSTAKE. Holders of stkTOKENs earn staking rewards in the form of pTOKEN.
Note: stkTOKEN are yield generating tokens while pTOKEN do not produce any yield on simply holding.