Reinvesting PCOL Rewards into XPRT/PSTAKE Pool on Persistence DEX

Governance
1

Summary:

This proposal seeks community consensus to claim the accrued rewards from the PCOL wallet—approximately $4,296—and reinvest them into the XPRT/PSTAKE liquidity pool on Persistence DEX. This action aligns with the long-term vision of sustainable community-owned liquidity, as laid out in previous PCOL and governance proposals.

Background

Over the past few months, the Persistence community has taken meaningful steps to bootstrap liquidity on the rebranded Persistence DEX (formerly Dexter) through Persistence Community-Owned Liquidity (PCOL) initiatives:

  • PCOL Initial Proposal – Aug 2023 outlined the purpose of establishing sustainable liquidity using community treasury assets, initially targeting pools such as XPRT/USDT, XPRT/PSTAKE, and XPRT/stkXPRT.

  • PCOL Deployment & Expansion – Oct 2023 showed strong community alignment in expanding to stablecoin liquidity and emphasized that rewards would be recycled back into LP positions to maintain liquidity depth over time.

  • Governance & Growth Strategy – Nov 2023 reinforced the importance of aligning DEX growth with governance oversight and emphasized the compounding effect of liquidity incentives through community-owned assets.

Current PCOL Rewards Snapshot

As of now, the PCOL wallet has earned ~$4,296 in LP rewards, spread across three tokens:

Token Amount Value (USD)
PSTAKE 46,713.89 ~$2,196.45
XPRT 16,458.65 ~$959.95
stkXPRT 17,308.96 ~$1,140.00

These rewards stem from LP positions that the community previously authorized and have now matured to the point where reinvestment can compound their impact.

Why Reinvest in XPRT/PSTAKE?

We propose to claim the rewards and LP the entire amount into the XPRT/PSTAKE pool on Persistence DEX for the following reasons:

  1. Simplicity & Efficiency:
    All three reward tokens are already in or directly swappable into the target assets for this pool, allowing for seamless execution without having to sell any of the tokens. They’re also pretty much 50/50 at this stage so that works out nicely.

  2. Rewards-Backed Flywheel:
    As outlined in earlier proposals, the intent behind PCOL was to recycle rewards back into liquidity, creating a compounding flywheel of deeper pools and increased swap volume.

  3. Supports One of the DEX’s Key Pools:
    The XPRT/PSTAKE pool consistently ranks among the most active by volume on Persistence DEX. Concentrating rewards here reinforces an already important trading pair and helps maintain a strong user experience on the platform.

Operational Plan

Upon community consensus, the multisig will:

  1. Claim the current PCOL rewards.

  2. Convert stkXPRT into XPRT via the stkXPRT/XPRT pool.

  3. Pair the max amount possible of XPRT/PSTAKE pool based on current pool ratio (should be close to 100% of the rewards).

Community Discussion

We invite the community to share feedback and confirm alignment on this reinvestment approach.
Do you support recycling these rewards back into the XPRT/PSTAKE pool?

Options:

  • Yes – Claim and reinvest all into XPRT/PSTAKE

  • No – Hold rewards or allocate differently (please comment)

Let’s keep growing community liquidity—together, sustainably.

1 Like
2

At this time if there is a lot of activity in the XPRT/PSTAKE pools and it needs more liquidity I don’t see it being a negative to add more liquidity. I do have some questions though, does the community pool receive rewards from the XPRT/PSTAKE pool as an incentive for adding liquidity? or does it not receive rewards being the community pool?

Just wondering if the community pool is receiving rewards for adding liquidity

3

I support the proposal to claim the rewards and LP the entire amount into the XPRT/PSTAKE pool on Persistence DEX.

This approach is both straightforward and efficient, leveraging the fact that all reward tokens are already compatible with the target pool. By recycling rewards directly back into liquidity, we reinforce the compounding flywheel effect that drives deeper pools and increased trading volume—perfectly aligning with the original intent behind PCOL.

Focusing on the XPRT/PSTAKE pool also strengthens one of the DEX’s most active and vital trading pairs, ensuring robust liquidity and a better trading experience for all users. The operational plan is clear, actionable, and minimizes unnecessary swaps or conversions.

In summary, this strategy maximizes impact, supports the ecosystem, and keeps the process streamlined for the community. I fully support moving forward with this plan.:rocket:

4

Yes absolutely it does, since the liquidity is also bonded it earns both trading fees and incentives.

5

Following the successful passing of the PCOL reinvestment proposal (Mintscan), the operational tasks outlined in the proposal have been successfully completed. Below is a detailed breakdown of all executed steps with transaction hashes for full transparency:

Step 1: Rewards Claimed The PCOL multisig successfully claimed accumulated rewards from our LP positions:

  • PSTAKE: 46,713.887159772077775311
  • stkXPRT: 17,855.300456
  • XPRT: 18,373.130930

Multisig Transaction: https://cw3multisig.persistence.one/persistence1axw5he6ktvz8rgacec3ldxmegy0urn0xevsysl7e0hx6dx90er6qlcv78s/12

Step 2: stkXPRT Conversion to XPRT To optimize for the XPRT/PSTAKE pool, we converted all stkXPRT:

Step 3: Liquidity Addition to XPRT/PSTAKE Pool Final Holdings Post-Conversion:

  • PSTAKE: 46,713.887159772077775311
  • XPRT: 38,443.018546 (combined from original + converted)

Pool Addition:

Remaining Balance: 3,200.501546 XPRT (returned to multisig due to pool ratio constraints)

Step 4: LP Token Management & Bonding

This reinvestment operation has successfully:

  • Claimed all accumulated PCOL rewards
  • Optimized token composition for target pool
  • Added substantial liquidity to the high-volume XPRT/PSTAKE pool
  • Activated reward earning through bonding
  • Maintained operational efficiency with minimal unused funds

The rewards-backed flywheel is now actively compounding, with our community-owned liquidity earning both trading fees and incentives in one of Persistence DEX’s most vital trading pairs.

Thank you to the community for the support and alignment on this strategic reinvestment. The PCOL initiative continues to strengthen the Persistence ecosystem’s liquidity foundation sustainably and effectively.