Persistence is a protocol powering Institutional Open Finance that bridges DeFi and Traditional finance by facilitating the borrowing of crypto assets (stablecoins) using real-world assets as collateral. On November 5th, Tushar, Deepanshu, Mikhil, and Abhitej joined us in Staking Hub to answer all of our questions.
- Persistence will be the hub for a suite of DeFi and TradFi products
- Persistence will give users the ability to trade real world assets represented as NFTs
- XPRT stakers will earn rewards from fees generated by applications
- Economic and network parameters will be similar to Cosmos at launch
Bridging DeFi and TradFi
The Persistence team believes that there is a natural progression where DeFi and TradFi will meet, but there are 3 key issues that need to be addressed first:
- Privacy must exist at the identity and transaction level.
- Institutional friendly fiat onramps (crypto native/friendly banks) must be more accessible.
- The complexities around custody, key management, and volatility of gas must be simplified.
The team aims to solve these issues with their Persistence SDK that expands off of Cosmos SDK.
“Persistence applications import the basic Cosmos SDK modules without modification. The Persistence SDK supplies additional modules for enabling more complex application logic, like inter-chain NFT issuance and transfers, sovereign Identity and reputation, NFT DeX, and metadata commit reveal.”Deepanshu Tripathi, CTO
The team believes that Persistence will act as a hub that offers a suite of financial products ranging from crypto native to traditional finance, which will ultimately connect the otherwise siloed DeFi and TradFi markets.
Real World Assets On-Chain
The team has been focusing heavily on real world asset tokenization. These assets would be represented on-chain as NFTs (non-fungible tokens), which can be traded or used as collateral to take out a loan.
Comdex, an application built on the Persistence SDK uses this technology to trade real world commodities represented as NFTs on on-chain. By leveraging Persistence’s technology, Comdex is able to offer more value to commodity traders in comparison to more traditional systems.
“Comdex’s target clients are SME trading organisations that do not have dedicated tools to manage documentation and create audit trails. Comdex acts like an end to end SaaS platform to cover the trading journey with an audit trail in case of any disputes while offering instant trade settlement and better access to financing opportunities.”Tushar Aggarwal, CEO
XPRT Token & Network Parameters
The XPRT token is the native token on Persistence and will primarily be used as a staking token. Similar to Terra, XPRT stakers will have the opportunity to earn fees from all applications and chains that are secured by Persistence.
“Today, most chains are reliant on network subsidy. Our dream is to have chains that have enough financial activity that you do not need inflation to sustain the chain(s).”Tushar Aggarwal, CEO
At launch, network parameters on Persistence will be similar to Cosmos.
“Inflation, slashing and other dPoS parameters on the Persistence Hub will very closely follow the parameters on the Cosmos Hub at genesis with governance proposals enabled to change them on run time. Why fix what’s not broken?”Deepanshu Tripathi, CTO
In the future, the team also plans to expand on its governance module to allow for inter-chain governance within the Persistence ecosystem.
“The basic governance will remain as is with an additional module being developed to enable inter-chain governance, validator elections, and slashing to allow for emergent shared security between the Persistence Ecosystem chains.”Deepanshu Tripathi, CTO
Feel free to join Persistence’s Telegram group if you would like to stay up to date on the project.
Special thanks to Tushar, Deepanshu, Mikhil, and Abhitej for spending an hour with Staking Hub to answer all of our questions!
Thank you Gavin for co-hosting and thanks to our Staking Hub community for all of your wonderful questions.
Feel free to join our Staking Hub Telegram group if you haven’t already.