Proposal to upgrade the Dex Keeper Contract (Corrected Address)

Summary

This proposal seeks to upgrade the Dexter Keeper Contract to enable the withdrawal and swapping of accumulated protocol fees (approximately $35,000) into Protocol-Owned Liquidity in the ATOM/XPRT pool.

Proposal #130 for this upgrade was previously approved by governance but failed upon execution due to an incorrect contract address. In that proposal, we mistakenly used the address persistence1ery8l6jquynn9a4cz2pff6khg8c68f7urt33l5n9dng2cwzz4c4qs72n0q instead of the correct Keeper contract address persistence1sthrn5ep8ls5vzz8f9gp89khhmedahhdqd244dh9uqzk3hx2pzrsvpslsg. This proposal corrects that error by using the proper Keeper contract address.

Background

Since the launch of the Persistence DEX (formerly known as Dexter) in late March 2023, the protocol has accrued approximately $35,000 in fees from swap fees and instant unbonding fees. Currently, these fees are locked in the Keeper Contract without the ability to withdraw or swap them.

To optimize the treasury's fee management and liquidity provision, this proposal seeks to:

1. Upgrade the Keeper Contract to enable withdrawal and swapping of the accumulated assets.
2. Convert all non-XPRT assets into ATOM and pair them with XPRT in the ATOM/XPRT liquidity pool.
3. Request a top-up from the Persistence Foundation to bring the position to a 50/50 ratio in terms of value.

By forming a dedicated Protocol-Owned Liquidity (POL) position in the ATOM/XPRT pool, we aim to strengthen overall liquidity depth, enhance trading efficiency, and generate sustainable fee revenue for the Persistence ecosystem.

Post-Upgrade Action Plan

Upon successful contract upgrade, the Keeper Contract administrator (secured by a 2/3 multisig) will:

1. Withdraw Non-XPRT Assets and convert them into ATOM
2. Redeem LP Tokens and swap the redeemed tokens to consolidate holdings in ATOM and XPRT
3. Pair ATOM and XPRT into the ATOM/XPRT Pool with a Foundation top-up to achieve a 50/50 ratio
4. Maintain the Protocol-Owned Liquidity Position to generate ongoing fees for the treasury

For further context and community discussion, refer to the forum thread: https://forum.persistence.one/t/persistence-dex-protocol-owned-liquidity/669

Governance Votes

• YES: Approve the upgrade of the Keeper Contract and subsequent swaps to form Protocol-Owned Liquidity in the ATOM/XPRT pool, including the requested Foundation top-up.
• NO: You do not approve this exact request. You believe the motivation is valuable but request changes.
• NO (VETO): You veto the entire motivation for the proposal.
• ABSTAIN: You are impartial to the outcome of this proposal.