Persistence One ($XPRT) attempts to amalgamate real-world assets with blockchain-based finance. There has been a need for this because decentralized finance (DeFI) protocols still rely on assets with little tangible value outside of the blockchain. As a result, some have called DeFi a speculative bubble similar to the ICO craze in 2017-2020, despite its high interest and activity. This change is necessary for the field to progress further, attain maturity, and for mass adoption or usage.
Persistence is an asset-based lending/borrowing and debt issuance/management hybrid protocol, bringing the power of real-world assets to DeFi. It does so by facilitating crypto-assets borrowing, using real-world assets as invoiced NFTs, and then using them as wrapped financial products.
Persistence One is designed to enhance the transfer of value between the two worlds of finance by enabling value transfer through seamless interoperability via on-off ramps. It was developed to promote open and inclusive finance in addition to solving inefficiencies in payments and financing.
Background And History
The project was launched in January 2020. The Persistence team is multicultural and consists of experienced members with sound technical backgrounds. They come from various traditional finance and blockchain companies. As such, they are familiar with the limitations of the current DeFi and centralised finance (CeFi) systems and are aware of what needs to be improved.
Persistence protocol is led by CEO Tushar Aggarwal and CTO Deepanshu Tripathi, both with legacy finance applications development experience. The team believes that three core elements namely Capital, Technology, and Media are crucial for the success of a project and work to establish a balance between them.
How does Persistence One work?
Their mode of operation lies in four steps of (1) tokenization; (2) trading; (3) the origination of debt and (4) its securitization. The process begins with tokenizing real-world assets’ invoices as NFTs. This is done so that the assets can be represented adequately on the blockchain.
Next, comes the trading of such NFTs against stablecoins.
Thirdly, stablecoins are borrowed by putting real-world assets representing NFTs as collateral, the birth of loans. The fourth and last step is the packaging of the loans into different pools to create fixed income investable products – a process known as securitization of debt.
Why use blockchain?
A key question at this point relates to the reason and advantages of using blockchain for such activities. The mission of Persistence is to increase the speed and efficiency of value transfer, as well as make it more secure. As it happens, blockchains specialize in such matters.
Some advantages for Persistence to use blockchain for their operations includes:
- It allows for capital movement in a trustless, borderless, and “free from time constraints” manner.
- Blockchains permit invoices, letters of credit and bills of lading, etc. to be tokenized and turned into divisible assets as NFTs.
- Introduces the decentralized exchange for uncensorable and secure trading of real-world assets against stablecoins.
- Results in the creation of debt marketplaces for lending/borrowing.
Persistence has applied a dual-focus approach for the successful execution of the project. The institutional focus utilizes the asset-based lending use case for physical commodity traders and financiers. Secondly, is the crypto focus, which allows blockchain-based assets to integrate with real-world yield-bearing assets.
Persistence blockchain system
As a Proof of Stake (PoS) blockchain system, the protocol has three layers of Persistence chains (app-chains deriving security from the main-chain and its validators), Persistence SDK (a plug and play module system powering functionality on the network), and Persistence dApps (finance-based applications).
Its design principles are chain sovereignty (independent secure blockchain operation), liquidity, and usability for business purposes. The Persistence protocol blockchain system is privacy-preserving by default yet legal and regulatory-compliant, is integrated with FIAT on and off-ramps, and allows for simplification of processes.
Persistence’s asset-based lending platform Comdex
The protocol has developed the Comdex decentralized commodities trading and financing platform that connects commodities traders, while also providing financing facility to sellers. It is commodity agnostic and can allow for trading diverse groups of commodities, ranging from metal to food products.
Comdex, for regulatory compliance, would require Anti Money Laundering (AML) / Know Your Customer (KYC) checks before on-boarding. It would also feature a trader’s right access system to determine access to particular commodities, opening trade, executable trade size, etc. On top of everything, all activities will be recorded on the open blockchain.
Persistence token ($XPRT)
Persistence One has a native token known as $XPRT built as an ERC-20 based token (for now) and has a 100B supply). Its main uses are staking (for participation in network security), community governance (allowing holders to vote on important matters), rewards (for contributing to the network), and work token (deriving value from the activities on the network).
XPRT has not started a public sale yet and the token is not tradable. However, they currently have a StakeDrop campaign on Cosmos Network which will begin at 7:00am on 26th October (UTC). During this StakeDrop, a total of 200,000 XPRT (worth approx. USD$50,000) will be allocated to those who stake $ATOM tokens.
According to the Team every person that stakes ATOM on the Cosmos Network can earn up to 5,000 XPRT.
More details on this StakeDrop campaign are available here.
Persistence appeals for institutional clients and companies
The current DeFi infrastructure isn’t conducive to institutional clients and companies. This is mostly because current DeFi projects have institutional red-flags such as pseudo-anonymity, open transaction and activity details, having no legal compliance, having only crypto-based settlements, and having complexities transferred to the users (gas payments, security, key management, risk management, etc.)
However, the Persistence protocol offers verifiable anonymity, hidden transaction details and records, is legally compliant, has FIAT-based settlement guarantees and simplified process – gas payments, security and key management run by the platform. It also provides an institutional-grade infrastructure that these clients are used to.
It can be seen that Persistence is a strong contender for taking DeFi related services mainstream and allowing for their usage by institutional clients, companies, and enterprises. Persistence can help blockchain move from a speculative phase to being used in the real world, including traditional finance.
The protocol allows businesses and traders to take loans against assets in order to meet their needs. This is especially useful if they can’t access the high requirement and strongly gate-keeped traditional finance industry.
At the same time, Persistence allows lenders to generate interest in their idle assets and current low-interest banking environment.
Decentralised Finance (DeFi) series: tutorials, guides and more
With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. We also take a deep dive into popular DeFi topics such as Yearn.finance ($YFI), Balancer ($BAL) and ($COMP).
The DeFi series on this website also covers topics not explored in YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency
Learn about Yearn.finance ($YFI) and all its various hard forks and iterations:
- Yearn.finance ($YFI) farming with yEarn Pool
- YFII Yield Farming- the controversial $YFI Fork
- YFFI Yield Farming – Another fork of the popular yield farming Dapp
- Andre Cronje, Founder of yEarn.Finance ($YFI) talks DeFi with FTX
For in-depth information other specific DeFi projects, check out our DeFi token guides:
- AAVE ($LEND)
- Ampleforth ($AMPL) review: The essential guide to this DeFi protocol
- Balancer Finance Guide and Review ($BAL)
- ChainLink ($LINK) guide: A key link in the DeFi space
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- THORChain ($RUNE) information and guide
- Trustswap ($SWAP) explained- Next generation of DeFi transactions
- YF Link ($YFL): Combining the best of ChainLink ($LINK) and Yearn Finance ($YFI)?
- YFV Finance Yield Farming
Tutorials and guides for the ESSENTIAL DEFI TOOLS:
- MetaMask Guide: How to set up an account? PLUS tips and hacks for advanced users
- Uniswap review and tutorial: Beginners guide and advanced tips and tricks
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