Stablecoins and Cosmos
Stablecoins, an asset class that pegs its value to another asset class like a fiat currency, like USDC and USDT, are arguably one of the leading product market fit in crypto today. According to DeFiLlama, the Total Stablecoin market sits at ~$125B+, an all-time high. Stablecoins have become the bedrock of flourishing DeFi economies due to their price stability, overall accessibility, financial inclusivity, and utility.
The influx of stablecoins like USDC and USDT into the Cosmos Ecosystem was through bridges like Gravity and Axelar. This came with high transaction fees, a subpar User Experience, and the security risk of the bridge. These pitfalls led to minimal stablecoin presence, one of the most significant barriers for DeFi to flourish in Cosmos. The collapse of USTC and Terra has also left a giant hole of stability within Cosmos.
However, this changed with the recent launch of native USDT issuance on Kava and native USDC issuance on Noble. In just a few weeks, these two stablecoins represent $176M+ in market value within Cosmos. With native stablecoins, onboarding users outside of Cosmos and deepening liquidity within Cosmos is now easier than ever.
Today, the Persistence Ecosystem achieves a massive milestone as Cosmos native USDC and USDT liquidity is bootstrapped on Dexter, the liquidity hub of Persistence
Significance of USDC and USDT on Persistence
The Persistence Ecosystem should position itself to capture a substantial portion of this expected stablecoin liquidity influx. USDC and USDT on Persistence may bring the following benefits.
- The presence of one of the highest volume-generating token class
- Reduced barrier to entry to Persistence LSTfi
- Building LST liquidity against stable coins
- Deepening XPRT liquidity
- Potential onboarding of new users (traders and LPs) onto Persistence
- Diversifying presence of stablecoin liquidity in Cosmos for perpetual protocols like dydx, Levana
- Offering optimized trade routes on aggregators like TFM, Skip, and Squid
- Strengthen XPRT as the base token on Dexter
User Guide: Getting USDC and USDT on Persistence
USDC from Noble
There are four major ways of getting USDC onto Persistence.
- 1-click instant transfer using DEX aggregators
Swap and transfer any token on any Cosmos chain to USDC on Persistence using
– TFM’s IBC Swap
– IBC Swap powered by Skip Protocol on ibc.fun, Leap Wallet, or Keplr Wallet
– Squid Router - Transfer from another DEX
- Get USDC on DEXs like Osmosis, Shade Protocol, Kujira.
- Withdraw USDC back to Noble from the same DEX.
- IBC transfer USDC from Noble to Persistence using Deposit on Dexter’s Assets Page.
- Transfer USDC from outside Cosmos
- In the future, you can transfer your USDC from chains like Ethereum, Arbitrum, etc. to Noble directly using Circle’s CCTP (Cross Chain Transfer Protocol) enables the instant burn and mint of USDC on various connected chains.
- IBC transfer USDC from Noble to Persistence using Deposit on Dexter’s Assets Page.
- Mint new USDC
- Deposit fiat to directly mint USDC on Noble using a Circle Account.
- IBC transfer USDC from Noble to Persistence using Deposit on Dexter’s Assets Page.
USDT from KAVA
There are three major ways of getting USDT onto Persistence.
- 1-click instant transfer using DEX aggregators
Swap and transfer any token on any Cosmos chain to USDT on Persistence using
– TFM’s IBC Swap
– IBC Swap powered by Skip Protocol on ibc.fun, Leap Wallet, or Keplr Wallet
– Squid Router - Transfer from another DEX
- Get USDT on DEXs like Osmosis, Shade Protocol, Kujira.
- Withdraw USDT back to KAVA from the same DEX.
- IBC transfer USDT from KAVA to Persistence using Deposit on Dexter’s Assets Page.
- Transfer USDT from EVM Ecosystem
- Bridge USDT from any EVM Chain to KAVA EVM using Stargate.
- Transfer USDC from KAVA EVM to Persistence directly using TFM’s IBC Swap.
Conclusion
Overall, stablecoins like USDC and USDT on Persistence may increase on-chain activity and TVL, onboard new Persisters to the ecosystem, and strengthen Dexter’s position as a unique DEX in the broader Cosmos Ecosystem with liquidity for LSTs like stkATOM, Stablecoins like USDC and USDT, and native tokens like XPRT and PSTAKE.
In the future, the pSTAKE protocol could accept stablecoin deposits to mint stkTokens (USDC deposited on pSTAKE can be swapped as USDT->XPRT->ATOM on Dexter to then mint stkATOM), increasing User Experience significantly.
In the future, other DeFi legos, like a borrowing lending protocol or perpetual protocol, could significantly benefit from deep stablecoin liquidity. Today, the launch of USDC/USDT and USDT/XPRT pools on Dexter marks the beginning of Stablecoin use cases on Persistence.
A booming LSTfi economy will need a booming Stablecoin Landscape.
About Persistence
Persistence is a cosmos app chain for LSTfi (liquid staking finance) with the issuance of & DeFi for LSTs.
The Persistence core-1 chain hosts pSTAKE Finance–a multi-chain liquid staking protocol for issuing LSTs that allows users to earn staking rewards while participating in DeFi primitives, Dexter–the Interchain DEX for yield-generating assets like LSTs.
Persistence aims to offer a one-stop shop for liquid staking for PoS (Proof-of-Stake) users and enable developers to build innovative applications around LSTs.
Become a Persister today!
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