Taking XPRT token Multi-chain and Expanding its Liquidity in New Ecosystems

Dear community,

On behalf of the Persistence Labs contributors, I am excited to share an important initiative aimed at building deeper XPRT liquidity and expanding its presence to new ecosystems.

Currently, the majority of XPRT liquidity lies within the Cosmos ecosystem, primarily on Dexter, Osmosis, and ShadeSwap. The total XPRT liquidity is ~$625k across all pools, distributed as follows:

Maintaining strong liquidity for any token is crucial for community growth, distribution, trading, arbitrage opportunities, and the ease of moving in and out of a particular asset. High liquidity attracts new users to the platform, creating a virtuous cycle of increasing liquidity and user growth. Despite some growth in XPRT liquidity over the last few months (especially on Dexter), achieving diversified and efficient XPRT liquidity remains a key challenge.

To address this challenge, we have been exploring new strategies. Besides the newly created pools with WBTC on both Dexter & Osmosis, we believe it’s also time to take the XPRT token multi-chain. Moving to an ecosystem with active users, substantial liquidity, and high trading volumes seems to make perfect sense IMO.

Therefore, we’re considering expanding the XPRT token’s presence and liquidity to ecosystems beyond Cosmos, starting with the Base chain.

About Base Chain

Base Chain is an Ethereum Layer-2 scaling solution deployed by Coinbase, one of the largest cryptocurrency exchanges in the world. This new blockchain was introduced to offer a low-cost method for developers to build on-chain applications and reduce the overall network’s workload.

In less than a year since its inception, the Base chain has become the 7th largest blockchain in terms of total value locked (TVL), with $2.16 billion in TVL, and the 4th largest blockchain in terms of volume, with $28 billion in cumulative volume.

The Base Chain community is experiencing rapid growth and the network is witnessing an estimated steady 350,000 active daily accounts, indicating its increasing popularity and potential for further expansion.

Thus, Base remains a compelling choice for expanding XPRT liquidity.

Aerodrome DEX on Base Chain

On Base, Aerodrome is the largest DEX, with $722 million in liquidity locked on the protocol. The cumulative volume on the Aerodrome DEX has surpassed $5 billion, and different pool types, including the innovative v3,3 pool, are available on the chain.

Therefore, Aerodrome appears to be the optimal platform on the base chain for expanding XPRT liquidity.

What’s next

We have initiated the process of integrating with the Axelar bridge to facilitate the transfer of XPRT to the Base chain. Our plan includes deploying a concentrated liquidity XPRT pool on Aerodrome, paired with USDC.

To bootstrap and attract liquidity in this new XPRT/USDC pool on Aerodrome, I suggest incentivizing liquidity providers for the foreseeable future. For the month of June, the pool will be supported with 25,000 XPRT incentives from the Persistence Incentivization Multisig (previously funded via XPRT governance Prop 70).

On the Aerodrome protocol, these incentives will be distributed as weekly epoch-based AERO incentives into the pool, following the v(3,3) model.

We are confident that this move will strengthen and diversify XPRT liquidity, attract new users to the Persistence One ecosystem, and enhance its presence outside the Cosmos Ecosystem.

Following the launch on Base, we will also target other active ecosystems, such as Blast or TON, to establish deep XPRT liquidity. Overall, the idea is to move quickly on these fronts to maximize impact and bring XPRT where users & liquidity is already present. .

Share your thoughts

We appreciate your continued support and invite your feedback on this initiative. Overall, we want to hear your thoughts on the following:

  1. Do you align with this approach?
  2. What are your thoughts on building XPRT liquidity on Base?
  3. After Base, which ecosystem should we take XPRT to next?

PS: This discussion does NOT require a follow-up on-chain governance proposal to move forward as the incentives will come from a tranche that was already earmarked to be used for XPRT incentives on DEXter, Osmosis and other DEXes. The sole purpose of this post is to candidly share this initiative with the community and gather feedback, which can then be used to adjust incentives in the coming months.

2 Likes

From my point of view, it makes little sense to create more pools on more chains. Tradingvolume is low and more pools will not change the situation as long as there is no demand for XPRT

And the main question is, why should someone on basechain want to buy XPRT? Whats his benefit, is there any future usecase? The different chains are already easy accessible via IBC and different swapservices within seconds.

So I would expect as far as the pool gets incentivced some people will provide LP for sure, otherwise the pool will be dead and I further expect little to zero tradingvolume.

For me the, your central task should be to create demand for XPRT via new usecases, apps, … When there is demand then you can think about new chains.

1 Like

I support the multi chain initiative to attract more users and reach the communities outside Cosmos. Base is a big player and Aerodrome is fast growing dex with vey good traction so I believe it will be beneficial for Persistence to exists in that space.

I agree with Martus that the question regarding use case is important. It’s not so beneficial for the project when people just joining for the high APR of the pool. Having stkETH or stkAERO integration with Base/Aerodrome would be one of such example.
I would consider expand to other chains having stktoken built or considered to be created… We have stkBNB, we could continue expand XPRT liquidity there and build restaking solution further.
Security then could be commoditized and offered to multichain…

Persistence had a major strategy swift towards BTC recently. I would explore collaboration with fast growing BTC L2 like Mintlayer etc.
Considering BTC staking via Babylon and new fast growing L2 we could build a new, innovative products which are not on the market currently.

For the new Bitcoin L2 chains it would be great to be strategic partner for them and try to sell security, staking and BTC yield…

In one sentence I agree with Jeroen post and this is a step in a right direction and more good is still to come…

Hi @Martus ,

For XPRT liquidity to grow, it needs to be visible and known first and foremost, and the experiment to bring the token to Base is an attempt to make that happen. There are a lot of users and traders on Base, hence I believe it doesn’t hurt to create exposure/visibility there.

Arbitrage across chains should create volumes, volumes create fees, fees should create liquidity. There have been many attempts to attract liquidity in a market where there is very little liquidity and action (Cosmos), so I believe it’s worth a try in an ecosystem where there is ample liquidity & action (Base), especially if they co-incentivise because they’re also still in a growth phase.

I agree that there should be more use cases for XPRT (or even stkXPRT), but you can’t build use cases without liquidity typically.

If we keep XPRT just in cosmos, I’m pretty sure demand will not come, which is why I want to try alternative routes.

1 Like

I agree 100% with @dneorej. Exposure to a larger global market through high activity chains like BASE and TON will improve accessibility and also awareness, both critical elements in building a strong foundation. I sense through the existing feedback that focused continuous improvement of tokenomics is a “thing” , which can only be enhanced by increased awareness and accessibility.

Interesting initiative.

If the costs are deemed acceptable, then it is worth taking a gamble and see what is going to happen. However, I would surely also like to see a plan how to attract the investor on BASE. Just creating a pool is never enough (we have seen many many examples of using that tactic which didn’t work out), so it must also go hand-in-hand with a plan how to approach the investor.

If that plan is not in place, then it doesn’t make sense imo.

I like Persistence’ mission which is to make ‘Liquid Staked Tokens (LSTs) the default capital-efficient medium of exchange and utility in DeFi’.

While increasing XPRT liquidity is essential, the primary focus should be on creating substantial utility for stkXPRT.

To achieve this, integrating stkXPRT as collateral in the lending ecosystem would be a strategic next step. By partnering with leading DeFi platforms like Aave, Compound, and MakerDAO, or creating such a lending vault on the ‘Persistence DEX’, stkXPRT can be established as a widely accepted collateral type. This integration will drive demand for stkXPRT by allowing users to leverage their staked assets to borrow other tokens, thus providing high-yield opportunities and enhancing capital efficiency.

Incentivization programs, including initial high yield boosts, liquidity mining, and airdrops, will attract early adopters and liquidity providers. Educational initiatives and targeted marketing campaigns will inform users about the benefits and processes of using stkXPRT in lending platforms, ensuring widespread adoption.

his approach not only strengthens the utility of stkXPRT but also aligns with the broader mission of making LSTs a capital-efficient medium in DeFi, driving growth and adoption within the Persistence ecosystem. IMHO, continuous monitoring and optimization will ensure the success of this initiative, which can extend particularly to the potential integration of Real-World Assets (RWAs).

1 Like