As early supporters of each other, the Persistence One and Osmosis Ecosystems have a symbiotic relationship that has crossed paths on multiple occasions since Genesis. Both communities would benefit from co-deploying POL on the XPRT/OSMO pool on Osmosis. With this discussion, I would like to propose the Osmosis Community Pool to match $250k in OSMO liquidity (the Persistence One Community Pool will provide the other $250k in liquidity, subject to Governance) to deploy in the XPRT/OSMO Supercharged pool (pool #1101).
- Persistence One <> Osmosis was one of the first IBC connections (Osmosis channel-4) in Cosmos
- XPRT/OSMO was one of the first pools to go live on Osmosis (Pool #15) and enable Superfluid Staking.
- At its peak, XPRT had $30M+ liquidity and was one of the most traded tokens (~$35.7M avg monthly volume) on Osmosis before the Terra collapse.
- Persistence Labs runs the Audit One validator on Osmosis (100% uptime) and 78.46% (out of 650) governance participation.
- Persistence One contributors are closely following the development of Mesh Security, believe in the benefits it can bring, and are strongly supportive of Cosmos app chains adopting it when it goes live.
- pSTAKE, a Persistence One Ecosystem dApp for LST issuance, has launched OSMO liquid staking that focuses on transparent OSMO delegations and decentralization of the Osmosis chain.
Persistence One is on a mission to maximize liquid staking yield in Cosmos. Expanding liquid staking to the biggest Cosmos Ecosystems like Cosmos Hub, Osmosis, and dYdX will bring a new wave of DeFi and users to Cosmos.
Osmosis has solidified its position as the central liquidity hub of Cosmos. Currently, Osmosis facilitates ~30% of the daily XPRT trading volume across CEXs and DEXs. Undoubtedly, Osmosis will be the premier place for XPRT trading and act as a gateway to the Persistence One Ecosystem.
The most significant benefit to the Persistence One Ecosystem is having deeper liquidity for its native token on the leading exchange in Cosmos, attracting more volume, LPs, and eyeballs.
- Increased trading volume on Osmosis
- XPRT monthly volume has increased ~4x since its lows from September 2023. As the Persistence One Ecosystem expands (within and beyond Cosmos) through new products, partnerships, and targeted efforts on distribution, XPRT trading volume on Osmosis is expected to increase.
- Higher volume will bring more taker fees for OSMO stakers and generate additional yield for the Osmosis Community Pool through this POL injection.
- Diversified Osmosis POL
- Beyond being a show of support and alignment, POLs can be an excellent way for the Community Pool to increase liquidity, facilitate trading, and ultimately act as a strategic revenue source for Osmosis.
- Through its Community Pool, the Osmosis Ecosystem can benefit from deploying diversified strategic POLs that capture potential upsides.
- Distribution for Persistence One
- More spotlight on Persistence One can result in people looking more into its Ecosystem offering like stkOSMO by pSTAKE. With its additional focus on decentralizing the Osmosis chain, this can be a fruitful flywheel for Osmosis.
- The potential success of Persistence One’s LSTfi Ecosystem will directly tie in and contribute to Osmosis’ success.
- Increased arbitrage opportunities on Osmosis
- XPRT/ATOM on Dexter, a DEX on Persistence One, has ~$750k+ liquidity and does ~$30k daily trading volume. While it is proposed that this joint POL be deployed only on Osmosis, more visibility and deeper XPRT/OSMO liquidity can empower more arbitrage opportunities on Osmosis.
- This can lead to more trading on Osmosis and increase IBC volumes between the two ecosystems, an additional mutual benefit.
- More DeFi usage with a possible vault on Quasar
- With deeper liquidity via the POL and higher community incentives, XPRT/OSMO can become a great candidate for a vault on Quasar to attract more liquidity providers and increase pool activity.
To start things simply and efficiently, the following steps can be followed:
- Put a proposal on Osmosis for $250k worth of OSMO to a multisig
- Put a proposal on Persistence One for $250k worth of XPRT to a multisig
- IBC transfer XPRT tokens to Osmosis
- Deploy ~$500k liquidity on the XPRT/OSMO pool on Osmosis
It is proposed that the POL be deployed for at least one year on the XPRT/OSMO Supercharged pool (#1101). ONLY OSMO governance will hold power to continually re-evaluate the POL’s duration, size, withdrawal, and any further actions.
OSMO governance can transfer the POL position to Timewave’s non-custodial POL solution once its Covenant v2 is audited and released.
The XPRT/OSMO Superchated pool #110 is currently incentivized with ~15,000 XPRT tokens monthly. The Persistence One Community, through XPRT governance, can substantially increase this amount to support the POL with more liquidity providers to amplify its benefits further.
We look forward to hearing Osmonauts’ thoughts and feedback on this proposal to strengthen ties between the Osmosis and Persistence One communities and provide substantial value to the Osmosis Ecosystem.
Notably, we request your feedback on the following:
- What do you think of the proposed joint XPRT/OSMO POL?
- What are your thoughts on deploying liquidity on the XPRT/OSMO supercharged pool (#1101)? Are you aligned with the pool’s current parameters to host this POL?
- Who do you suggest be a part of the ⅗ multisig that will hold the POL?
- How should the POL’s LP tokens (and subsequent swap fee yield) be split?
- Do you believe this proposal has merits and benefits for the Osmosis Ecosystem?