persistence

Prop 140: Upgrade the Persistence Dex Vault contract for stkASSET deprecation process

Summary

This proposal seeks to implement the ‘pool defunct functionality’ on Persistence DEX to manage the deprecation of PSTAKE stkASSETS (this does not include stkXPRT) . Following PSTAKE's decision to deprecate stkASSETS, all associated liquidity pools on Persistence DEX containing these assets must be defunct to return original liquidity back to LP token holders.

This proposal contains two Cosmos messages:

  1. Contract Migration: Upgrading the vault contract to enable defunct pool functionality
  2. Whitelisted Authority Grant: Granting pool-wide authority to a Persistence-controlled address to facilitate pool deprecation and user refunds

Proposal

The proposal aims to:

  • Implement Pool Defunct Functionality: Deploy the enhanced vault contract with defunct pool capabilities
  • Grant Administrative Access: Provide limited authority to a Persistence-controlled address specifically for pool deprecation and refund processing
  • Mark stkASSET pools as defunct: Prevent new operations (joins, swaps, exits) on pools containing deprecated "stk" assets
  • Return Original Liquidity: Allow LP token holders to recover their proportional share of the original underlying assets

Authority Delegation

The whitelisted address will have limited control restricted to:

  • Deprecating pools containing stkASSETS that PSTAKE is discontinuing
  • Processing user refunds in batches to return original liquidity
  • Ensuring successful completion of the refund process

This authority does not extend to any other vault operations or fund management beyond the defunct pool mechanism.

Benefits

  • User Protection: LP token holders receive their proportional share of original underlying assets
  • Orderly Transition: Prevents new liquidity from entering pools with deprecated stkASSETS
  • Efficient Processing: Dedicated authority enables timely pool deprecation and liquidity returns
  • Risk Mitigation: Prevents issues from continued operation of pools containing deprecated assets

Rollout Timeline

  • Day 1-5: Community review and voting period
  • Day 5: Upon approval, contract migration is executed and authority is granted.
  • Day 6+: Begin pool deprecation and user refund processing one-by-one for each pool.

Technical Details

The defunct pool functionality includes:

  • Pool Status Management: Atomic operations to mark pools as defunct
  • Operation Blocking: Prevents all operations on defunct pools
  • Refund Mechanism: Proportional asset distribution based on LP token holdings

Voting

  • YES: Vote in favor of implementing the defunct pool functionality and granting limited authority for pool deprecation
  • NO: Vote against the implementation
  • NO WITH VETO: Vote if you believe this proposal is spam or fundamentally flawed
  • ABSTAIN: Abstain from voting while contributing to quorum requirements