Tendermint based SDKs, Terra and Persistence, are excited to announce a joint collaboration through a delegated Token Swap. The objective of this partnership is to drive network expansion efforts in key geographic areas and collaborate on community initiatives.
Background
The demonstrated success of the CHAI application built with the backbone of Terra infrastructure has provided important models towards adoption and clear value addition to its users.
Inspired by Terra’s go-to-market via E-Commerce payments, Persistence has similarly emulated this route through its powering of Digital Asset Exchanges and Marketplaces (facilitating trading of Commodities, Social Impact Bonds, Renewable Energy Credits etc) to drive adoption. Comdex, the first application in the Persistence ecosystem has processed more than $10 Million worth of trades across various Commodity trading organisations in strategic corridors of Asia.
Currently, Persistence relies on its relationship with large Financial Institutions to settle trades on the various trading platforms it powers via the SWIFT ecosystem (which takes 2–3 business days to clear). As ‘traditional’ organizations, especially trading firms, learn more about the Blockchain/Cryptocurrency industry, they intend to start using stablecoins for faster settlement to drive efficiencies to their businesses.
The Partnership
- In the absence of its own stablecoin, Persistence commits to using Terra’s Stablecoin(s) to facilitate settlement of trades for the applications in its ecosystem
- Terra and Persistence will support each other to give exposure to the respective projects in their local communities (similar to how the community initiative of Persistence recently provided greater visibility to Iris Hub, another project in Cosmos/Tendermint ecosystem)
Why do a Token Swap and how will it work?
Given synergies on multiple fronts and shared excitement of each other’s projects, Terra and Persistence have decided on a Token Swap.
Persistence will begin to ‘earn-out’ Luna Tokens (staking tokens of Terra) and other Stablecoin(s) by running a Validator for the Terra Network operating at a 100% commission rate. Luna will be delegated to this Validator by Terraform Labs. Persistence tokens will be delivered to Terraform Labs once they begin to start trading publicly.
This swap will encourage alignment between Terra and Persistence. It will ensure token distribution to parties familiar with staking and enable a positive outcome for Persistence token.
About Terra
Terra is a stablecoin that achieves price-stability via an elastic money supply, enabled by stable mining incentives. The protocol ensures price-stability by algorithmically expanding and contracting supply. It also uses seigniorage created by its minting operations as transaction stimulus, thereby facilitating adoption. Pegged to the world’s major currencies, Terra aims to be able to support a global payment network. As it continues to grow, we expect demand to expand into new regions and new blockchain ecosystems beyond our own.
About Persistence
Persistence is a Tendermint-based, specialised Layer-1 network powering an ecosystem of DeFi applications focused on unlocking the liquidity of staked assets.
Persistence facilitates the issuance and deployment of liquid-staked stkASSETs, allowing users to earn staking rewards while participating in DeFi primitives, such as lending/borrowing and liquidity provisioning on DEXs.
Persistence aims to offer a seamless staking and DeFi experience for PoS (Proof-of-Stake) users and enable developers to build innovative applications around stkASSETs.
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