Persistence DEX Protocol Owned Liquidity

Governance
1

The Persistence DEX (formerly known as Dexter) launched at the end of March 2023 and the protocol has been accumulating tokens from swap fees and instant unbonding fees since then, totalling close to 35,000$.

Swap fees are denominated in the specific tokens that are swapped, while instant unbonding fees are denominated in the form of an LP position. As a result, the Persistence DEX protocol treasury (also called ‘Keeper Contract’) currently holds the following assets (as of 18/02/25):

Wallet Positions: Token Amount Price Value
XPRT 39,241.97 $0.1162 $4,559.92
ATOM 1,020.08 $4.8200 $4,916.79
stkATOM 379.53522 $6.6700 $2,531.50
USDT 1,433.77 $1.0000 $1,433.77
WBTC 0.004732 $95,955.0000 $454.06
USDC 408.38087 $1.0000 $408.38
PSTAKE 12,785.60 $0.0251 $320.66
DYDX 214.012744 $0.7749 $165.84
STARS 4,350.06 $0.0035 $15.39
HUAHUA 130,478.49 $0.0000 $3.94
stkXPRT 3,135.36 $0.1256 $393.80
stkDYDYX 83.317475 $0.7749 $64.56
stkHUAHUA 157,625.40 $0.0000 $4.77
stkSTARS 2,576.88 $0.0035 $9.12
SUM (A) $15,282.50
LP Positions Pool Value
ATOM/XPRT $7,149.67
USDC/USDT $5,900.59
WBTC/XPRT $2,657.05
USDT/XPRT $1,586.34
PSTAKE/XPRT $1,130.14
DYDX/USDC $1,040.84
STARS/XPRT $39.53
SUM (B) $19,504.16
TOTAL (A+B) $34,786.66

As prices and accumulated fees change constantly, a great place to check the current value of the fees accumulated is here on Pulsar or here on Mintscan. Note that both pages don’t correctly display the value of a few smaller stkASSETS.

In a recent forum discussion around DEX Liquidity, it was suggested that the protocol should explore new ways of building liquidity. This sparked the idea of using the accumulated protocol fees and bond them as Protocol Owned Liquidity.

One of the pools that has historically contributed most to the trading activity and the success of Persistence DEX is the ATOM/XPRT pool, hence the suggestion of this proposal would be to convert any non-XPRT assets into ATOM and pool them with the XPRT into 1 LP-position into that pool.

This is what the approximate numbers would look like if that would be done:

Wallet Positions: Token Proposed action Token out Token amount out Value
XPRT keep XPRT 39,241.97 $4,559.92
ATOM keep ATOM 1,020.08 $4,916.79
stkATOM swap for ATOM ATOM 525.21 $2,531.50
USDT swap for ATOM ATOM 297.46 $1,433.77
WBTC swap for ATOM ATOM 94.20 $454.06
USDC swap for ATOM ATOM 84.73 $408.38
PSTAKE swap for ATOM ATOM 66.53 $320.66
DYDX swap for ATOM ATOM 34.41 $165.84
STARS swap for ATOM ATOM 3.19 $15.39
HUAHUA swap for ATOM ATOM 0.82 $3.94
stkXPRT swap for XPRT XPRT 3,388.99 $393.80
stkDYDYX swap for ATOM ATOM 13.39 $64.56
stkHUAHUA swap for ATOM ATOM 0.99 $4.77
stkSTARS swap for ATOM ATOM 1.89 $9.12
SUM C (XPRT) XPRT 42,630.96 $4,953.72
SUM D (ATOM) ATOM 2,142.90 $10,328.78
LP Positions Pool Proposed action Token out Token amount out Value
ATOM/XPRT keep (I) ATOM/XPRT $7,149.67
USDC/USDT swap for ATOM ATOM 1,224.19 $5,900.59
WBTC/XPRT swap for XPRT XPRT 22,866.18 $2,657.05
USDT/XPRT swap for XPRT XPRT 13,651.81 $1,586.34
PSTAKE/XPRT swap for XPRT XPRT 9,725.82 $1,130.14
DYDX/USDC swap for ATOM ATOM 215.94 $1,040.84
STARS/XPRT swap for XPRT XPRT 340.19 $39.53
SUM E (XPRT) XPRT 46,583.99 $5,413.06
SUM F (ATOM) ATOM 1,440.13 $6,941.43
SUM G (C+E) XPRT 89,214.96 $10,366.78
SUM H (D+F) ATOM 3,583.03 $17,270.21

Based on the current numbers, those swaps would result in approximately 10.3k$ worth of XPRT and 17.2k$ worth of ATOM.

If the foundation would be willing to top up the XPRT portion as a gesture/grant to make it a 50-50 position (which this proposal requests), the total ATOM/XPRT liquidity from the community pool would be close to 42k$, which would be very valuable for the Persistence DEX and the community as a whole to ensure a solid baseline of liquidity.

Foundation to add (J) (=H-G) XPRT 59,409.89 $6,903.43
Current LP Position (I) ATOM/XPRT $7,149.67
Additional new position K (G+H+J) $34,540.41
Final Position (I + K) ATOM/XPRT $41,690.08

Looking forward to reading everyone’s inputs on this proposal

4 Likes
2

Ahha. This is a smart and sustainable approach to growing liquidity for Persistence DEX. Converting accumulated fees into a Protocol-Owned Liquidity (POL) position ensures long-term depth for the ATOM/XPRT pool, which has already been a key driver of trading activity.

What I personally like is the fact that the proposal aims to consolidate various smaller assets into ATOM/XPRT rather than spreading liquidity too thin. Having the foundation contribute to balancing the LP position makes sense as well, since it strengthens the overall DEX ecosystem.

But well, curious to hear thoughts from others— if they think this should be expanded to more pools over time, or is focusing on ATOM/XPRT the best move for now!

3 Likes
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The ATOM/XPRT pool seems a good place, but with Persistence aiming for Bitcoin DeFi, why not go for a BTC-position and solidify the liquidity for that pool?

4 Likes
4

I think the proposal is a great idea, as Australian Persisters, my partner and I have been promoting Persistence XPRT to all our friends, family and people we meet who are into crypto. Most are new to crypto and some long term hodlers, we have been helping them buy XPRT and stake in their wallets.

From our point of view here in Australia all Aussie exchanges (to my knowledge) do not have XPRT on their platforms. For us to get our friends, family and others into the greatest coin on the market (unrealized and under valued = great opportunity) the simplist way to purchase XPRT is to buy ATOM on an Aussie exchange, then send the ATOM across to the wallet ie. Keplr or Leap, then swap via the ATOM/XPRT pool. In doing so we have come across a lack of liquidity several times making buying XPRT a slow process. Having more liquidity on the ATOM/XPRT pools would be an easier and smoother option for us and others to help support the Persistence one ecosystem from Australia.

I also think supporting the WBTC/XPRT pool would be a great idea too. In my opinion supporting ATOM/XPRT pool first would be more practical, then as time goes by and more fees come in after mainnet launch and V2 upgrade, then support WBTC/XPRT pool.

Note, if Aussie exchanges ever offer Send/Receive of stable coins to the Cosmos chain then the practice of sending ATOM may get replaced by sending USDT/USDC instead. This would reduce ATOM/XPRT swap volume. For this reason, a method of periodically reassessing what fees get converted into is suggested.

3 Likes
5

Thanks for your replies and contributions folks.

To this point: I thought about this as well but currently the ATOM/XPRT pool is still the most widely used where the need for liquidity is highest, while BTC isn’t that well connected YET to the cosmos ecosystem. The launch of Persistence v2 mainnet is hoping to change that, but even then the connection between BTC and cosmos won’t be immediate, hence the suggestion to focus on the ATOM/XPRT pool first, then in a second form of this we could do the BTC pool.

2 Likes
6

I had the same idea than @LeonoorsCryptoman but yes, that makes sense

1 Like
7

It does make sense indeed, but it is also a loss of time to build up a position in BTC/XPRT in the meantime. Maybe better to already do a 50/50 or 75/25 ratio to at least start building the preferred position?

When the main product goes live, it is then automatically combined with a position instead of having to build the position at that time.