Summary
This proposal requests 1M XPRT from the Persistence One Community Pool as incentives for XPRT liquidity on DEXs like Dexter, Osmosis, and others in the future and all the pools on Dexter over the next 6 months.
Simultaneously, the community is encouraged to share ideas and discuss more efficient ways of incentivization over the longer run.
Context
Persistence Proposal 13 allocated 450,000 XPRT tokens from the community pool for LP incentives to bootstrap early liquidity and to fund other protocol costs. These incentives were used to bootstrap liquidity for tokens such as stkATOM, PSTAKE, XPRT, USDC, USDT, and DYDX in the last 9 months.
Persistence Proposal 21 (XPRT Liquidity Bootstrapping - XLB) allocated 1M XPRT tokens from the Ecosystem Wallet to bootstrap XPRT liquidity on Dexter and Osmosis.
LP Incentivization through XPRT (both proposals above) has been largely successful.
XPRT liquidity
- XPRT pools on Dexter and Osmosis now have combined liquidity of $1M+
- ATOM/XPRT pool on Dexter ($700k+) is one of the most traded pools on Dexter
- XPRT/OSMO pools on Osmosis remain the gateway for broader users to be onboarded into the Persistence One Ecosystem through distribution and yield opportunities
Dexter Traction
- Dexter has crossed $5M in liquidity and $7.5M in cumulative trading volume
- ATOM/XPRT pool on Dexter ($700k+) is one of the most traded pools on Dexter with ~$25k average daily volume
- USDC/USDT pool on Dexter ($350k+) provides one of the best swap rates in Cosmos, thereby attracting more DeFi enthusiasts to Persistence One
- DYDX/USDC pool on Dexter ($65k+) is crucial for the no-click auto-compounding of stkDYDX by pSTAKE
- ATOM/stkATOM pool on Dexter ($3.2M+) is the home of stkATOM liquidity in Cosmos and averages ~$150k+ weekly volume
Proposal
It is suggested that 1M XPRT tokens be used from the Persistence One Community Pool in the next 6 months for
- XPRT Liquidity Bootstrapping on Dexter, Osmosis, and other DEXs in future
- Incentives on all Dexter pools
If the proposal passes, 1M XPRT tokens will be transferred to the Persistence Incentivization Multisig (PIM), which has spearheaded XLB incentives since its beginning.
Incentives on Dexter will go through governance as Dexter recently adopted XPRT as its default token, a part of which was the need for XPRT governance approvals to add incentives on all Dexter pools. Incentives on other DEXs will be added by the PIM directly.
The PIM will allocate incentives monthly and regularly present updates and insights on the Persistence One Forum. Monthly reward schedules for Dexter and XLB will be published to the broader community for transparency. All transactions from the PIM will, of course, be publicly visible, too. In the future, as the community discusses newer, innovative, and more sustainable ways of liquidity incentives, a DAO could be formed that looks after this community activity altogether.
Rationale
- XPRT incentives from both the above proposals were drastically reduced in the last few months but have now neared exhaustion.
- The above data shows that XPRT is a significant enabler for traction in the Persistence One Ecosystem.
- The proposed amount (1M XPRT) represents ~28% of the Community Pool, thereby not having a significant impact while resulting in a net positive for the ecosystem.
- The proposed period (6 months) gives enough time for the community to come together and present a way ahead for XPRT and Dexter incentivization.
Participate
Persisters are invited to participate and share their feedback. Following the discussion, an on-chain proposal for transferring 1M XRPT from the community pool to the PIM will be put up, considering relevant inputs from community members.
- What do you think of the proposal, including the suggested amount, period, and the benefits this will bring?
- Are there any additional considerations or suggestions you would like to bring up regarding this proposal?