persistence

Prop 110: Whitelist Skip API team address for the Persistence DEX integration

Introduction

This proposal seeks to whitelist the Skip API team address (persistence1raa4kyx5ypz75qqk3566c6slx2mw3qzs6dk8rc) on the Persistence Core-1 chain. This will allow them to deploy and manage their Skip API system (ibc.fun), specifically the Skip Router contracts, for seamless interaction with the Persistence DEX (previously Dexter) on the Persistence One blockchain.

The source code for these Skip Router contracts is publicly available on GitHub: https://github.com/skip-mev/skip-api-contracts

Benefits

  • Streamlined Development: Whitelisting the Skip API team's address eliminates the need for separate governance proposals for each smart contract deployment or upgrade. This significantly reduces development time and operational overhead for the Skip API team.
  • Enhanced User Experience: By integrating with Persistence DEX, the Skip API can offer users access to a wider range of liquidity options within the Persistence ecosystem, improving user experience and convenience.
  • Increased Liquidity and Network Effects: Whitelisting the Skip API team and facilitating their integration with the Persistence DEX will drive increased trading volumes on the DEX. This will attract more users and liquidity providers (LPs) to the Persistence ecosystem, creating a network effect. Deeper liquidity on the persistence DEX will make it a more attractive venue for traders, leading to higher swap fees for LPs and contributing to the overall growth of the Persistence DeFi landscape, creating a flywheel.

Proposal Details

We propose whitelisting the Skip API team's address on the Persistence Core-1 chain. This will grant them the ability to:

  • Store their Skip Router contracts directly on the Persistence chain.
  • Instantiate (deploy) their initial set of contracts.
  • Upgrade their contracts in the future, ensuring continuous improvement and adaptation.

Risks and Considerations

The Skip API Contracts are fully open-sourced and audited by Oak Security, with the API having processed over hundreds of millions of volume since inception. With that said, it is important to acknowledge that all smart contracts carry inherent risks. By interacting with the Persistence DEX through the Skip API, users will be exposed to the smart contract risk associated with the Skip Router contracts. These risks include, but are not limited to:

  • Code vulnerabilities: Even with thorough audits, unforeseen vulnerabilities in the Skip Router contracts could lead to loss of funds.
  • Unexpected behavior: Unintended functionality or interactions between the Skip Router contracts and other components within the Persistence ecosystem could produce undesirable outcomes.

Users should carefully consider these risks and conduct their own research before utilizing the Skip API for interacting with the Persistence DEX.

Note: ‘Persistence DEX’ is the new brand name for Dexter, with transition currently underway.

Governance Vote

The following options summarize the voting options and their implications:

  • YES: Approve the proposal to whitelist the Skip API team's address for code storage, instantiation, and upgrade purposes.
  • NO: Request refinements or adjustments. While acknowledging the proposal's merits, a NO vote suggests the Skip API team submit a revised proposal incorporating the requested changes.
  • NO (VETO): Strongly disagree with the proposal's core motivation. A NO (VETO) vote signifies that the Skip API team should not pursue a follow-up proposal.
  • ABSTAIN: Remain impartial regarding the proposal's outcome.