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πŸ“‘Litepaper

Our goals and an overview of the protocol.

Project Pi: Pioneering Liquid Staking on PulseChain

Abstract

Project Pi introduces an innovative Liquid Staking protocol on PulseChain, empowering users to earn yield while maintaining liquidity. By utilizing the PRC404 collateral token, Project Pi Yield (PPY), the protocol provides validators with an efficient, cost-effective path to staking, maximizing rewards. Users can stake PLS, receive stPLS tokens, and retain the flexibility to participate in other DeFi opportunities. Our protocol is designed for ease of use, accessibility, and scalability, creating a decentralized, trustless staking ecosystem for the future of PulseChain.

Introduction

PulseChain is an eco-friendly, low-fee, and high-speed Proof of Stake (PoS) network. While PoS protocols like Ethereum 2.0 have proven more efficient than traditional Proof of Work (PoW), PulseChain takes it further with scalability, lower costs, and enhanced performance. Project Pi leverages PulseChain’s capabilities to enable Liquid Staking and efficient validator pools, enabling users to maximize yield while maintaining access to their capital.

Problem

Traditional staking models come with significant limitations:

  1. Capital Inefficiency: Over $83M of PLS is locked in validators, restricting liquidity and preventing further capital utilization.

  2. Lack of Opportunity: PulseChain users have limited options to generate more PLS. Existing methods involve swapping or selling PLS tokens, which restricts participation in other protocols.

  3. Opportunity Cost: Without liquid staking, users miss out on DeFi opportunities while their assets are staked.

  4. Scaling Demand: As PulseChain’s validator requirements grow, smaller participants may be priced out, leading to centralization.

Solution

Project Pi solves these issues by offering three core features: Pi Pools, Liquid Staking, and NFT Staking.

Pi Pools

Pi Pools reduce the PLS required to become a validator, making it more accessible while enhancing rewards.

  • Lower Requirements: Validators only need 16M PLS + PPY collateral (25%–150% of 16M PLS in USD), making it accessible for more participants.

  • Increased Rewards: Pi Pool operators can boost their validator yield significantly, raising rewards from ~10% APR to 20%-45% APR by using PPY as collateral.

Liquid Staking

Liquid Staking enables PLS holders to generate yield without sacrificing liquidity.

  • Instant Liquidity: Users receive stPLS tokens (a derivative of staked PLS) after staking, which can be used in other DeFi protocols.

  • Earn Yield: PLS stakers generate yield while retaining the flexibility to trade or stake their stPLS.

  • Dynamic Exchange Rate: The stPLS exchange rate adjusts over time, ensuring users benefit from staking rewards. For example, 1 stPLS might equal 1.00252 PLS, reflecting a 2.60% APY on rewards.

NFT Staking

Project Pi leverages the PRC404 standard to introduce NFT Staking, providing additional yield streams and rewarding NFT holdersβ€”the first of its kind for a Liquid Staking protocol.

  • Earn Redemption Fees: PPY NFT holders earn a share of the fees when liquid stakers redeem stPLS for PLS.

  • Dual Utility: Integrating both PRC20 (PPY) and PRC721 (NFT) standards, Project Pi boosts user engagement and rewards.

Business Model

Project Pi’s revenue model is designed for long-term growth and sustainability:

  1. Unstaking Fee: A 1.25% fee is applied when liquid stakers convert stPLS back to PLS.

  2. PPY Inflation: 10% of the newly minted PPY is allocated to the project’s treasury every 28 days.

  3. Node Sales: Project Pi sells pre-configured nodes to new operators seeking a straightforward setup.

  4. Hosting Nodes: We charge a monthly fee for users who want to use Pi Pools without owning physical hardware.

  5. Node ID Generation: A $5 fee is charged for Node ID generation during Pi Pool setup.

These revenue streams ensure that Project Pi remains aligned with its users while capturing a share of the growing liquid staking market.

Tokenomics

Project Pi Yield (PPY)

PPY is the key token that powers the staking and governance of Project Pi:

  • Collateral for Validators: Node operators must stake PPY as collateral, alongside 16M PLS, to participate in Pi Pools.

  • Staking Rewards: Validators earn PPY rewards based on the amount of PPY staked, incentivizing more collateral to be used, thereby increasing rewards for all.

  • Insurance Mechanism: If a validator misbehaves, a portion of their staked PPY is slashed and burned, maintaining protocol security.

  • NFT Staking: 100K PPY enables users to earn a share of the fees when liquid stakers redeem stPLS for PLS.

PPY holders also participate in the governance of the protocol, voting on decisions like inflation rates, reward distribution, and protocol upgrades.

Goals

  • Decentralized Validator Access: Make it easier for anyone to become a validator on PulseChain with reduced capital requirements.

  • Maximize Liquid Staking Yield: Enable all participants to generate yield without sacrificing liquidity.

  • Decentralize PulseChain Staking: Maintain a diverse and permissionless validator set.

  • Sustainability: Establish a self-sustaining community through PPY tokenomics and solid governance mechanisms.

Conclusion

Project Pi is revolutionizing staking on PulseChain by offering an efficient, liquid staking solution. Through Pi Pools, Liquid Staking, and NFT Staking, we are enabling more users to participate in staking and earn greater rewards while maintaining liquidity. As PulseChain grows, Project Pi is poised to lead the way in staking innovation, driving the network’s scalability, decentralization, and economic growth.

🌐 www.projectpi.xyz 𝕏 @ProjectPi314 πŸ“¨ info@projectpi.xyz

Acknowledgements

Project Pi thanks the Rocketpool team for pioneering liquid staking and PulseChain for providing a robust platform. We also thank the Atlanta Blockchain Center and Starter Labs for their support and guidance.

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