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Persistence ($XPRT): Bringing DeFi to institutions?

Persistence ($XPRT) 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.

Check out our interview with CEO and Co-founder Tushar Aggarwal

Bridging DeFi and traditional finance- Persistence w/ Tushar Aggarwal

What is Persistence?

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 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.

Stablecoins are then 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:

  1. It allows for capital movement in a trustless, borderless, and “free from time constraints” manner.
  2. Blockchains permit invoices, letters of credit and bills of lading, etc. to be tokenized and turned into divisible assets as NFTs.
  3. Introduces the decentralized exchange for uncensorable and secure trading of real-world assets against stablecoins.
  4. Results in the creation of debt marketplaces for lending/borrowing.

Persistence’s approach

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 SDK is by far the platform’s most important implementation of the blockchain. The Software Development Kit is a system of highly effective modules that enable the creation of marketplaces, yielding to a fast and comprehensive exchange of value.

Overall, the SDK protocol is characterized by four key features, being accessibility, liquidity, innovation, and sustainability. These factors power the protocol and allow the Persistence One platform to elevate physical commodities on-chain as NFTs. 

Additionally, through the SDK factors, the platform can efficiently implement crypto with real-world use cases ensuring a continuous stream of sustainable income. By doing so, it unlocks a huge potential for MSME businesses in the DeFi sphere through untapped liquidity; thereby providing tremendous opportunities within the crypto space.

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.

Comdex is the result of a partnership between the Persistence One dynamic team and trading entrepreneurs in Singapore that rely on the platform’s ecosystem to bring forward blockchain integration. As per recent developments, the Comdex protocol has been gaining traction within the blockchain. 

Comdex has already managed more than $55 million in transaction volume, far ahead of its competitors in terms of assets on-chain.

What is pLend, Persistence’s lending platform?

Backed by real-world assets, Persistence Lend or pLend is a stable coin lending platform that facilitates the supply of liquidity to pools for all Comdex transactions and dealings. pLend empowers stablecoin holders and enables them to supply liquidity, generating huge returns from real-world income and assets.

So far, pLend’s unique implementation has bridged the gap between traditional finance (TradFi) and DeFi. The lending platform will allow users to engage in the $65B global trade within the financing sector.

Overall, pLend guarantees participants huge returns on their assets without the need of often unsure mainstream DeFi solutions.

AUDIT.one

Described as a subsidiary to Persistence One, AUDIT ensures top-tier validation services for leading PoS networks through secured Tier 3 and 4 data centers across the globe equipped with a multi-cloud architecture.

Presently, a total of nine networks has entrusted AUDIT.one with approximately $120M worth of assets, including Cosmos, Terra, Matic Network, and NEAR. Additionally, well-known networks like Polkadot and Ethereum 2.0 have shown interest in the Persistence-based protocol.

Persistence token ($XPRT)

Persistence has a native token known as $XPRT built as an ERC-20 based token (for now) and has a 100M 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 StakeDrop

The StakeDrop campaign is made possible through the pStake protocol that guarantees the issuance of representative tokens (stk Tokens) on Ethereum which are backed by the staked assets. 

In the case of ATOM; illiquid staked ATOM tokens can be converted to liquid representative ER-20 tokens that can be utilized within the immense and growing DeFi space, backed by the Ethereum blockchain. This means that newly staked ATOMS will now be able for use as collateral when borrowing different stablecoins.

Through this system, participants are provided with the opportunity to implement differential strategies in accordance with their needs within the blockchain. 

pStake offers a unique way to stake PoS tokens and in the near future, a percentage of all tokens staked via pStake will also be staked through the AUDIT.one validator, thus ensuring the growth of both protocols within the blockchain.

Benefits of staking Persistence token ($XPRT) (Image Credit: Persistence)

Can Persistence successfully appeal to 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.

Conclusion

Persistence is a strong contender for overcoming the obstacle to DeFi being widely used by institutional clients, companies and enterprises. It does this by offering anonymity, hidden transaction records and most importantly, be legally compliant. In these respects, Persistence can help blockchain move from a speculative phase to being used in the real world, including traditional finance.

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. As well as a deep dive into popular DeFi topics such as Reef.finance ($REEF) and Polkadot ($DOT)

The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur.

B.C.
Ben loves Bitcoin and Bananas!

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