Bootstrapping XPRT Liquidity: Allocation of 1M XPRT Incentives (Proposal #21)

Governance
1

Hello Persistence Community,

As you might have seen, a new governance proposal has been submitted for allocating 1M XPRT to bootstrap deeper liquidity for XPRT on DEXes within the Cosmos ecosystem. This post aims to kickstart a conversation and gather feedback from our community members about the proposal, and make a first suggestion towards the allocation. I encourage everyone to participate in the discussion and share their thoughts, opinions, and suggestions.

Proposal Summary:

  • Allocate 1M XPRT from the Ecosystem wallet to incentivize liquidity for XPRT pairs on Osmosis and Dexter for a duration of 3 to 6 months.
  • If the proposal passes, the 1M XPRT will be transferred to a new ā€˜Persistence Incentivisation Multisigā€™, which will be managed by key stakeholders from the Persistence Ecosystem.
  • The allocation of the incentives and hence the spending from the Persistence Incentivisation Multisig will be first discussed with the community and will be subject to approval through on-chain governance

As a starting point for the discussion, hereā€™s my suggestion for

1. the allocation of XPRT tokens over time:

  • Instead of allocating the entire 1M XPRT upfront and spread it out evenly over 6 months, I propose that we allocate 500,000 XPRT during the first 45 days to gain traction quickly. This phased approach will allow us to better evaluate the effectiveness of the incentives while maintaining the flexibility to adapt as needed.
  • After 45 days, we can then decide if we need to use the remainder of the funds within the next 45 days (totalling 3 months), or if we spread them out over a longer period of time (max 6 months as defined in Proposal #21).

2. the distribution between Osmosis and Dexter:

  • 1/3 (approx. 166,666 XPRT) to Osmosis towards XPRT/OSMO, starting immediately after the first ā€˜multisig spend proposalā€™ passes
  • 2/3 (approx. 333,333 XPRT) to Dexter towards XPRT/ATOM, starting 15 days later, as Dexter already has heavy incentives prepared for the launch of their platform

These suggested allocations & distributions:

  • acknowledge that Osmosis is the main DEX in the cosmos ecosystem for regular assets and that having deep liquidity there benefits XPRT holders

  • help position DEXter as the main DEX in the cosmos ecosystem for yield-generating assets, like stkATOM, and soon also stkXPRT.

  • strengthen Persistenceā€™s position as The True Liquid Staking Hub, as deep liquidity of both regular assets & liquid staked assets is an important factor to build out further Liquid Staking DeFi use cases, such as borrowing/lending and vault products.

Key questions for discussion:

  1. Do you agree with the proposed allocation over Osmosis & Dexter for the first 45 days?
  2. If not, how do you envision the distribution of incentives between Osmosis and Dexter, and in which time frame?
  3. How should the impact of these incentives be measured?
  4. Are there any additional considerations or suggestions you would like to bring up regarding this proposal?

Following the discussion (in approximately 1 week, subject to Proposal #21 passing), I will take into account all points & thoughts and try to summarise the main conclusions and agreements reached, after which I will post a proposal on chain to request the official spend from the multisig.

I value the input and opinions of our community members, and I hope this discussion will help us better understand the needs and priorities of the Persistence ecosystem. Please share your thoughts and contribute to the conversation.

Looking forward to your insights and ideas!

2 Likes
2

The suggested allocation of tokens seems reasonable to me, and I believe that it will help to build more liquidity for $XPRT & its stk tokens on the cosmos DEXes.
In my opinion, this proposal could be a positive step forward for the Persistence ecosystem.

  1. Yes, I agree with the proposed allocation of XPRT tokens over Osmosis and Dexter for the first 45 days.
  2. If I didnā€™t agree, I would suggest a different distribution plan between Osmosis and Dexter and suggest a different time frame for implementing the incentives.
  3. The impact of these incentives should be measured by evaluating the increase in liquidity and trading volumes of XPRT on Osmosis and Dexter.
  4. One additional consideration could be to incentivize other DEXes within the Cosmos ecosystem to support XPRT trading pairs to increase the tokenā€™s exposure and liquidity.
1 Like
3

I agree with mantain flexible the allocation and measure the TVL in pools, maybe extend the rate of rewards another 45 days will be the best path to go, thatā€™s because this will relief the actual sell presure in the market, until the halving is reached, please cosider that 1.6M tokens will be released in July just before the halving event so incentivizing greatly those 3 months will prevent stagnant or negative price action even when the market is starting a brand new upwards cicle.

About distribution i think is apropiated the percentages between OSMO and DEXTER, IMO there is no need to incentivize just for now another DEXes.

4

Thanks for this.

On 3: agree, we can easily track here: Osmosis Info
On 4: which other DEXs would you consider?

5

I Agree as the proposal suggests allocating approximately 166,666 XPRT to Osmosis and 333,333 XPRT to Dexter. The suggested allocation aims to position Osmosis as the main DEX for regular assets and Dexter as the main DEX for yield-generating assets like stkATOM and stkXPRT. I also agree on getting more exposure to other Dexs for XPRT and also getting stkXPRT rolling forward ASAP. Measuring the effectiveness of incentives is important to evaluate their success and adapt as needed. Some possible metrics for measuring the impact of incentives could include trading volume, liquidity depth, number of trades, price stability, and user adoption. XPRT needs a liquidity shot in the arm, letā€™s do this as soon as possible and evaluate in 45 days as suggested. Allowing the Persistence core team to keep doing what they do bestā€¦ Being Persistent!

1 Like
6

Thanks for all the inputs here. Proposal #22 is now live on the chain to request to launch Phase 1 of the incentives distribution for bootstrapping XPRT liquidity. Inviting everyone to vote!