The Vision for Persistence and XPRT Value Accrual

XPRT utility and value accrual

$XPRT, the native staking token of the Persistence Core-1 chain, was launched in April 2021 with the vision to fuel a DeFi ecosystem creating innovative use-cases beyond the traditional DeFi primitives we see on most ecosystems today.

Persistence is a Tendermint based layer-1 chain, with a goal to build an ecosystem of decentralized applications that together accrue value to XPRT.

In 2021, the Persistence team focused on the Core-1 mainnet launch and key block explorer/wallet/exchange integrations required to scale the ecosystem. In 2022 and beyond, the main focus for the team will be to drive significant economic activity on the Persistence Core-1 chain.

Driving Economic Activity Within the Ecosystem

Persistence will be adopting a three-pronged approach to bootstrap the ecosystem of applications built by developers around the world, to propel adoption of the Persistence Core-1 chain:

Modular approach

  • Developers can build application modules directly on top of the Core-1 chain, using components of the Persistence architecture as plug-and-play interfaces.
  • Builders can leverage existing modules within the natively-interoperable Persistence SDK to customize their architecture, letting each module manage its own subset of the state.

Smart contract approach

  • With the integration of CosmWasm, the Persistence Core-1 chain will support the development of applications as smart contracts written in Rust. This approach will enable developers to build high-performance applications with easy upgradability.

App-chain approach

  • Ecosystem applications built as App-chains will leverage the Persistence Core-1 chain as a hub to route all IBC-enabled assets within the Cosmos/IBC ecosystem (read more about ‘hub routing’). These app-chains may or may not use the Persistence SDK modules.
  • By using IBC transaction routing through the Core-1 chain, App-chains won’t have to worry about connecting to hundreds/thousands of other chains (that may not be very trusted) using relayers that are expensive to operate.

How the Economic Activity Translates into Value for XPRT

The economic activity driven both within and outside the ecosystem will drive value for XPRT in the following manner:

Within the ecosystem

  • Modular dApps (e.g. pSTAKE) and dApps built using smart contracts (e.g. borrowing/lending in the future) will leverage the Core-1 chain infrastructure to build use-cases for stkASSETs. This will encourage more transactions (and thus transaction fees) on the chain. XPRT stakers will also benefit from the fees generated on these dApps.
  • IBC ecosystem is envisioned to incorporate thousands of App-chains, all of which need not be interconnected with one another on a 1:1 basis. IBC transactions from app-chains within the Persistence ecosystem will be routed through the Persistence Core-1 chain making the Core-1 chain the IBC hub of the Persistence ecosystem, accruing transaction fees on the Core-1 chain.

Outside the ecosystem

  • IBC-enabled stkASSETs for various PoS chains within the Cosmos ecosystem will be hosted on the Persistence chain.
  • These assets will flow within and outside the Persistence ecosystem through the Core-1 chain, generating further transaction fees.

Current Status and Future of the Persistence Ecosystem

Persistence has come a long way since the Core-1 mainnet launch, and the team has taken the first strides towards building a flourishing ecosystem. The following section highlights the synergies between ecosystem applications, and how they will drive engagement and growth within and outside the Persistence ecosystem.

Developments Thus Far

pSTAKE

  • pSTAKE is one of the fundamental building blocks of the Persistence ecosystem. It is currently being built on top of the Core-1 chain in a modular fashion, enabling support for the issuance of liquid staked representative tokens (e.g. stkATOM and stkXPRT) on the Persistence Core-1 chain.
  • Users will deposit their native assets (such as ATOM, LUNA, JUNO, etc.) on the Persistence Core-1 chain (via the pSTAKE liquid staking module) to issue IBC-enabled stkASSETs against their staked assets.
  • Issuance of stkASSETs will thus help to grow the total value locked (TVL) on the Persistence Core-1 chain, an important metric towards quantifying the ecosystem’s growth.
  • In order to use these stkASSETs on the Persistence ecosystem chain, users will pay gas fees in the form of XPRT. stkASSETs will also be integrated with apps outside the Persistence ecosystem, using the Core-1 chain as a hub to route the flow of stkASSETs.

A Realm of Possibilities

Depending on specific requirements, dApps can be built through any of the development approaches mentioned above (modular, smart contract based and App-chain). All applications built within the ecosystem, being maximally composable, will intermingle creating a positive feedback loop for the XPRT ecosystem’s growth.

Below are some examples of the use-cases that can be built for stkASSETs:

  • DEXs supporting yield-bearing stkASSETs.
  • Auto-repaying loans against stkASSETs, where staking rewards are used to repay the borrow interest rates.
  • stkASSET indexes, enabling users to gain exposure to staking rewards of multiple PoS assets directly via the various stkASSET index products. Other use-cases can extend from this, e.g. borrowing against these indexes as collateral.
  • Yield optimisation and insurance products centering around the stkASSETs.

The above examples provide a glimpse into the wide range of possibilities that can be uncovered for stkASSETs in the PoS ecosystem. Persistence will encourage and support the development of multiple use-cases to make stkASSETs the core assets of the PoS economy with stkXPRT as the base asset. Through this vision, Persistence will enable ecosystem participants to support protocol security while benefiting from DeFi composability.

Persistence team envisions the existence of multiple utility/governance tokens issued by ecosystem applications to incentivise various stakeholders. Similar to all other Layer-1 projects, XPRT sits at the absolute center of the ecosystem deriving significant value as the ecosystem grows.

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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