Deploy $500k POL on the XPRT/OSMO pool jointly from the Persistence and Osmosis Community Pools

[pandeymikhil]

Summary

As early supporters of each other, the Persistence and Osmosis Ecosystems have a symbiotic relationship that has crossed paths on multiple occasions since Genesis. Both communities would benefit from co-deploying POL on the XPRT/OSMO pool on Osmosis. The Osmosis and Persistence Community Pools are proposed to deploy $250K in liquidity each on the XPRT/OSMO Supercharged pool.

Brief History Together

• Persistence <> Osmosis was one of the first IBC connections (Osmosis channel-4) in Cosmos
• XPRT/OSMO was one of the first pools to go live on Osmosis (Pool #15) and enable Superfluid Staking.
• At its peak, XPRT had $30M+ liquidity and was one of the highest traded tokens (~$35.7M avg monthly volume) on Osmosis before the Terra collapse.
• Persistence Labs runs the Audit One validator on Osmosis (100% uptime) and 78.46% (out of 650) governance participation.
• Persistence contributors are closely following the development of Mesh Security, believe in the benefits it can bring, and are strongly supportive of Cosmos app chains adopting it when it goes live.
• pSTAKE, a Persistence Ecosystem dApp for LST issuance, has launched OSMO liquid staking that focuses on transparent OSMO delegations and decentralization of the Osmosis chain.

Rationale

Persistence is on a mission to maximize liquid staking yield in Cosmos. Expanding liquid staking to the biggest Cosmos Ecosystems like Cosmos Hub, Osmosis, and dYdX will bring a new wave of DeFi and users to Cosmos.

Osmosis has solidified its position as the central liquidity hub of Cosmos. Currently, Osmosis facilitates ~30% of the daily XPRT trading volume across CEXs and DEXs. Undoubtedly, Osmosis will be the premier place for XPRT trading and act as a gateway to the Persistence Ecosystem.

The most significant benefit to the Persistence Ecosystem is having deeper liquidity for its native token on the leading exchange in Cosmos, attracting more volume, LPs, and eyeballs.

Benefits to Persistence Community

• Increased XPRT liquidity and trading volume
  • XPRT liquidity will see a substantial increase in an efficient manner
  • As the Persistence Ecosystem expands (within and beyond Cosmos) through new products, partnerships, and targeted efforts on distribution, XPRT trading volume will increase.
  • More XPRT liquidity on Osmosis can bring additional eyeballs into the Persistence Ecosystem.
• Diversified Persistence One POL
  • The Persistence One Community pool can be the torch bearer of showing support and creating alignment with Osmosis
  • POLs can be an excellent way for the Community Pool to increase liquidity, facilitate trading, and ultimately act as a strategic revenue source.
• Distribution for Persistence One
  • More spotlight on Persistence One can result in people looking more into its Ecosystem offerings like stkOSMO by pSTAKE. With its additional focus on decentralizing the Osmosis chain, this can be a fruitful flywheel for Osmosis.
  • The success of Osmosis will directly tie in and contribute to Persistence’s success.
• Increased arbitrage opportunities on Dexter
  • XPRT/ATOM on Dexter has ~$750k+ liquidity and does ~$30k daily trading volume. While it is proposed that this joint POL be deployed only on Osmosis, more visibility and deeper XPRT/OSMO liquidity can empower more arbitrage opportunities on Dexter.
  • This can lead to more trading on Dexter and increase IBC volumes between the two ecosystems, an additional mutual benefit.

Implementation

To start things simply and efficiently, the following steps can be followed:

Steps Involved

1. Put a proposal on Persistence One for $250k worth of XPRT to a multisig
2. Put a proposal on Osmosis for $250k worth of OSMO to a multisig
3. IBC transfer XPRT tokens to Osmosis
4. Deploy ~$500k liquidity on the XPRT/OSMO pool on Osmosis

Liquidity Management

It is proposed that the POL be deployed for at least one year on the XPRT/OSMO Supercharged pool (#1101). To further align with Osmosis, OSMO governance can hold power to continually re-evaluate the POL’s duration, size, withdrawal, and any further actions.

OSMO governance can also decide to transfer the POL position to Timewave’s non-custodial POL solution once its Covenant v2 is audited and released.

Incentivization

The XPRT/OSMO Superchated pool #110 is currently incentivized with ~15,000 XPRT tokens monthly. The Persistence Community, through XPRT governance, can substantially increase this amount to support the POL with more liquidity providers to amplify its benefits further.

Participate

We look forward to hearing Persisters’ thoughts and feedback on this proposal to strengthen ties between the Osmosis and Persistence communities and deepen XPRT liquidity in Cosmos.

Notably, we request your feedback on the following:

1. What do you think of the proposed joint XPRT/OSMO POL?
2. Who do you suggest be a part of the ⅗ multisig that will hold the POL?
3. How should the POL’s LP tokens (and subsequent swap fee yield) be split?
4. Do you believe this proposal has merits and benefits for the Persistence Ecosystem?

[CallistoCosmo]

The proposed joint XPRT/OSMO POL appears to be a strategic move with several potential benefits for both the Persistence and Osmosis ecosystems.

1. Suggested Participants for ⅗ Multisig:

Given the shared history and collaborative nature, it would be advisable to have representatives from both communities. This could include key contributors, developers, and governance participants from each ecosystem to ensure a balanced and representative decision-making process.

2. LP Token and Swap Fee Yield Split:

The distribution of LP tokens and subsequent swap fee yield should be proportional to the contribution made by each ecosystem. In this case, a fair split would reflect an equal commitment from both ecosystems. However, the specifics could be negotiated based on the value each community perceives they bring to the collaboration.

3. Merits and Benefits for the Persistence Ecosystem:

The proposal seems to have several merits and benefits for Persistence. In tandem with the outlined merits and benefits for the $XPRT, it’s essential to highlight that this proposal should ideally yield mutual advantages for the Osmosis Ecosystem as well.

In conclusion, the proposed joint XPRT/OSMO POL presents numerous advantages but community feedback on the specific amounts of $OSMO and $XPRT included in the pool is vital to address any potential downsides.

[Stakecito]

Stakecito supports the idea of strengthening the bond between Osmosis and Persistence. As outlined in this post, their shared history proofs a close relationship, and mutual support can drive the improvement of both projects. Persistence also launched stkOSMO as one of the first (alongside ATOM) on pSTAKE.
The proposal, advocating for both communities to contribute an equal amount of 250k to the pool, demonstrates a commitment and trust in each other.
Stakecito suggests a fair approach of splitting swap fees and yield equally, 50-50.

We are looking forward for the proposal to go live soon and we are curious to see the reactions from both communities.

Cheers, the Stakecito team

[SuperEra]

Looks like a great move for both Persistence and Osmosis. This collaboration aligns perfectly with Persistence’s mission to maximize liquid staking yields and leverages Osmosis’s position as a central liquidity hub effectively.
Inclusion of a multisig approach for POL management, ensures that the interests of both ecosystems are safeguarded and prioritized
An easy YES for me

[LeonoorsCryptoman]

This draft has been discontinued (for now)

Deploy $500k POL on the XPRT/OSMO pool on Osmosis jointly from the...