Proposal for 1M XPRT Allocation to Boost Multi-DEX Liquidity

Governance
1

Summary:

This proposal seeks approval to allocate 1M XPRT to incentivize XPRT liquidity across several decentralized exchanges (DEXs), including Persistence DEX, Osmosis, Velodrome (Optimism), Aerodrome (Base), and potentially others in the future. This amount will also support XPRT incentives for other pools on Persistence DEX, such as the USDT/USDC pool.

Context:

In January 2024, Persistence Proposal 70 allocated 1M XPRT from the Community Pool to incentivize XPRT liquidity and Persistence DEX incentives for six months.

These funds have been utilized according to XPRT governance, with a remaining balance of 64.8k XPRT, which will be fully utilized for incentives in the upcoming month.

XPRT Liquidity Overview:

XPRT liquidity has significantly expanded across various DeFi ecosystems, with recent growth on Base and Optimism enhancing its tradeability beyond the Persistence and Cosmos ecosystems. To sustain this momentum, XPRT pools on Persistence DEX, Osmosis, Velodrome (Optimism), and Aerodrome (Base) are being strategically incentivized to bolster liquidity and drive broader adoption.

Currently, the total XPRT liquidity across these ecosystems stands at ~$720k. The introduction of new pairs, such as the stkXPRT/XPRT and XPRT/WBTC pools on Persistence DEX and the XPRT/USDC pools on Base and Optimism, has increased adoption and trading activity for the XPRT token beyond the Cosmos ecosystem.

In line with our previous discussion, I continue to advocate for taking the XPRT token multi-chain, as this strategy is crucial for expanding XPRT’s adoption and visibility. To maximize the impact on liquidity growth and further enhance the XPRT ecosystem’s reach, I propose that we strategically allocate incentives. Besides maintaining and growing liquidity in the Cosmos ecosystem, we should prioritize incentivizing liquidity on Base, Optimism, upcoming Bitcoin Layer 2s, and other ecosystems where user activity and liquidity results are stronger. Additionally, it’s worth noting that the pools on Velodrome and Aerodrome are concentrated liquidity pools with weekly epoch incentives, offering further potential for efficient liquidity deployment.

Persistence DEX Pools:

Key Progress on Persistence DEX Pools in Recent Months:

  • Total Liquidity: The Persistence DEX liquidity now stands at ~$3M across all pairs.
  • Total Trading Volume: The total trading volume on the Persistence DEX has reached ~$25M.
  • Skip Integration: The Persistence DEX has been integrated with Cosmos’ popular DEX aggregator, Skip Protocol. This integration is expected to bring more volume to the pools. However, increased liquidity is necessary to support better rates.

To maintain and enhance this liquidity, Persistence DEX pools are incentivized on a monthly basis in alignment with XPRT governance guidelines. These incentives are vital for attracting and retaining liquidity providers, ensuring a stable and liquid trading environment for all users. In recent months, the allocation of rewards has been carefully optimized to ensure long-term sustainability and efficiency. The goal has been to maximize the impact of each XPRT token spent, fostering continuous growth in liquidity while preserving the ecosystem’s overall health.

Proposal Details:

We propose utilizing 1M XPRT from the Persistence One Community Pool over the coming months for:

  1. Incentives on XPRT pools across different DEXs.
  2. Incentives for Persistence DEX pools.

If approved, the 1M XPRT tokens will be transferred to the Persistence Incentivization Multisig 1 (PIM), which has managed previous allocations. Note that a new PIM address will be created by 2 out of the 3 existing signers + 1 new signer, to reflect changes in the contributors on the project. Also note that incentives on Persistence DEX will continue to go through XPRT governance.

The PIM will allocate incentives on a monthly basis and will provide regular updates and insights via official Persistence One channels. Monthly reward schedules for Persistence DEX and XPRT liquidity will be transparently published for the community. All PIM transactions will be publicly accessible. In the future, how these incentives are spent can be discussed as the community explores innovative and sustainable liquidity incentive strategies.

Provide Feedback:

We invite all Persisters to participate in this discussion and provide feedback. Based on community input, an on-chain proposal to transfer 1M XPRT from the Community Pool to the PIM will be put forward.

Questions for Discussion:

  1. Do you agree to keep incentivising XPRT and Dexter liquidity?
  2. Do you have other feedback or ideas around sustainable liquidity incentive strategies?
  3. Are there any additional considerations or suggestions you would like to contribute regarding this proposal?
2 Likes
2

You meant persistence dex liquidity right?

After reading i think overall it looks good. I am into stables therefore as long as I get better incentives i would keep recurring my liquidity Pool!

3

Yeah. Support the proposal.
So. I like the reward structure and the incentivization plan to expand the reach of $XPRT through strategic incentives across platforms. Looking forward to seeing this bring more adoption and activity. :crossed_fingers:

4

Sounds good to me :+1:

5

I would like to see an overview of places where liquidity incentives are given and how the liquidity evolves through time (both in $-value, but even more in $XPRT placed in the DEX). That way we can also see if there are locations where the incentives are effective, or locations where actually no movement is detected in terms of liquidity.

That will allow future iterations also to be more effective and efficient.