Persistence: Create stkDYDX/DYDX metastable pool on Dexter

Summary

Persistence Proposal 71 was a Dexter governance proposal to create a new stkDYDX/DYDX pool and incentivize it with 300,000 PSTAKE tokens for the first 31 days. Although Prop 71 passed XPRT governance, it failed during execution due to a minor bug in the Dexter Governance Admin Contract.

This proposal re-initiates the creation of a new stkDYDX/DYDX pool on Dexter as the fix has been proposed through a Dexter Governance Admin Contract upgrade (Proposal 74)

This proposal also incentivizes the newly created pool with 300,000 PSTAKE tokens for the first 31 days.

Proposal

Create a new stkDYDX/DYDX pool on Dexter with the following parameters:

Pool Type: Metastable Pool
Pool Weightage: 50/50
Spread Factor: 10%
Amplification: 50
Swap Fees: 0.3%

Benefits

stkDYDX will be the latest LST to go live on Dexter, providing users with a new trade and yield avenue.
Dexter’s Metastable pool efficiency is expected to give the best swap rates for stkDYDX, increasing trading activity.
stkDYDX provides another LST yield opportunity through swap fees and other incentives on Dexter.
Liquidity Providers will suffer minimal Impermanent Loss as both tokens are very closely tied to each other.
stkDYDX utility on Persistence One will onboard the dYdX community, one of the most seasoned DeFi users, to the ecosystem.

Incentivization

PSTAKE governance passed the incentivization of stkTokens in Cosmos proposal in April 2023. As XPRT is the governing token of Dexter, reward schedules need to pass through XPRT governance, too.

It is proposed that the pool will be incentivized as follows:

Tokens - 300,000 PSTAKE tokens
Start Date - 13 February 2024
Duration - 31 days

Conclusion

Bootstrapping deep stkDYDX liquidity on Dexter is vital in attracting new traders and LPs, supporting the adoption of stkDYDX in Cosmos, and expanding the liquid staking economy on Persistence One.

Voting