Persistence One ($XPRT): Crypto asset loans with NFTs?

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 One

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:

  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’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.

How Comdex works
How Comdex works

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 StakeDrop

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.

Conclusion

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:

For in-depth information other specific DeFi projects, check out our DeFi token guides:

Tutorials and guides for the ESSENTIAL DEFI TOOLS:

More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel and (for now) FREE weekly newsletter so you can be notified as soon as they come out!

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!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay Connected

13,855FollowersFollow
105,748FollowersFollow
216,000SubscribersSubscribe
- Advertisement -

Latest Articles

Developing story: OKEx suspends withdrawals…but is there more to this?

What happened? On 16th October 2020 OKEx suddenly announced that one of their private key holders (later confirmed to...

Stacks ($STX): Bringing Bitcoin’s security to decentralised apps

Stacks ($STX) (formerly Blockstack) is an open-source network that allows developers to easily build decentralised applications (such as decentralised finance DeFi applications)...

Linear Finance ($LINA): The future of synthetic exchange platforms?

Linear Finance ($LINA) understands that decentralized finance (DeFi) has opened new possibilities for derivative offerings and that many exchanges have the apparent...

Ledger Nano X Review: Best Bitcoin Wallet of 2020?

Ledger Nano X is the next generation of Hardware wallet with smartphone support, a larger screen and more storage space for Apps....

Ledger Nano S Review (2020): Bitcoin Wallet on a Budget?

Ledger Nano S is the most popular cryptocurrency hardware wallet (more than 1.4 Million units sold). The Nano S is the most...