Jing Cash Endowment STX Provision - Zero Fee Trading for Stacking Pools

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#1

Jing Cash Endowment Proposal: Zero-Fee STX Trading Infrastructure

Topic: Jing Cash Endowment STX Provision - Zero Fee Trading for Stacking Pools

Category: Apps • Stacks DeFi

Tags: stacking defi trading yield endowment proposal no-kyc

Overview

Jing Cash is currently offline but represents proven technology. The codebase has been battle-tested through previous live deployments and has undergone comprehensive security audits. The platform is deployment-ready and will operate as an L2 Stacks order book, similar to the STX/BTC market on Beefy Swap except only on L2.

The system requires no guarantee deposits - users simply lock STX or sBTC and unlock by sending the counterpart token. Most importantly, no KYC is required, addressing a critical pain point in the ecosystem.

The KYC Problem

Current trading solutions create significant friction for stacking pools. A recent example: 3hunna encountered unexpected KYC requirements when swapping via Changelly (https://x.com/3hunnatheArtist/status/1964039842326802451), causing transaction delays. This scenario is unfortunately common - multiple stacking pools have reported reward distributions being frozen pending ID verification and documentation requirements.

Proposal: Endowment-Backed Zero-Fee Trading

We propose the endowment provide STX liquidity to Jing Cash in exchange for zero or near-zero fees. This creates substantial benefits:

For Stacking Pools:

  • Eliminates the typical 1-2% fees charged by platforms like SimpleSwap
  • Removes exchange slippage costs
  • Provides superior pricing compared to existing alternatives
  • Increases net yields distributed to stacking participants
  • Maintains complete privacy with no KYC barriers
  • Enables seamless stacking reward distribution automation

Pool operators can now automate the entire flow: BTC rewards → bridge to sBTC → P2P orderbook conversion to STX. This eliminates manual intervention and creates a smooth, automated reward distribution system.

For the Endowment:

  • Automated STX liquidity distribution system
  • Portfolio diversification into Bitcoin
  • Reduced manual treasury management overhead
  • Win-win economic model with measurable ecosystem impact

Economic Benefits:

Stacking pools currently lose 1-2% on every swap due to platform fees plus slippage. By eliminating these costs, pools can increase their effective yield distribution by the same margin. The endowment’s STX provision enables this fee structure while ensuring adequate order book liquidity.

Pool operators can build fully automated conversion systems, removing operational friction and manual processes from reward distribution.

Technical Implementation:

  • L2 Stacks native operation for optimal user experience
  • Trustless lock/unlock mechanism without deposits
  • Proven order book architecture with audit history
  • Permissionless access - no registration or verification required

Conclusion

This proposal positions the endowment as critical DeFi infrastructure while delivering measurable value to stacking pools and their users. The combination of zero fees, no KYC, automated processes, and battle-tested technology addresses the ecosystem’s most pressing trading challenges.

Important Note: The code for this system is ultra simple and has been extensively battle-tested through Jing Cash deployments and previously via Friedger’s Catamaran swaps. The technical risk is minimal given this proven foundation.

Community feedback on implementation details and fee structures welcome.

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#2

tl;dr Jing Cash is a P2P platform that lets stacking pools swap their Bitcoin rewards for STX tokens without KYC requirements or the typical 1-2% fees charged by platforms like Changelly, SimpleSwap or Binance. The proposal asks the Stacks endowment to provide STX liquidity to enable zero-fee trading, which would save stacking pools money on every conversion while giving the endowment Bitcoin exposure. This would increase the actual rewards distributed to stackers since pools wouldn’t lose 1-2% to trading fees and delays from KYC verification. The system would need ongoing liquidity replenishment since stacking pools receive hundreds of thousands of dollars worth of Bitcoin rewards every two weeks that must be converted to STX, but price oracles like Pyth or DIA could automate the rebalancing process to make it a set-and-forget solution, though that requires additional work but can be done if mandated. Essentially it’s a win-win where the endowment funds a more efficient exchange system that benefits the entire stacking ecosystem.

2 Likes
#3

Filed here: Jing Cash Endowment STX Provision - Zero Fee Trading for Stacking Pools · Issue #5 · stacksgov/sip31-interim-grants · GitHub

1 Like
#4

this would be super useful to have

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#5

How will the endowment-backed zero-fee model ensure sufficient liquidity on Jing Cash, and are there plans to handle high-volume trading or edge cases where the order book might be thin?

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#6

I like this idea a lot. Right now pools lose 1–2% every time they swap BTC to STX, which means less rewards for us stackers. If Jing Cash can cut out the fees and KYC delays, we’d get more back and faster. Rapha and his projects always show that he’s here for the ecosystem, not only for gains in money.

Curious how the liquidity part will be handled long-term, but overall this feels like the kind of thing the endowment should support since it helps everyone in the ecosystem.

1 Like
#7

@FroggysOrd - Thank you! Really appreciate the support. The ecosystem definitely needs this infrastructure to stop the fee bleeding happening every cycle.

@Farhan - Great question! This will be more of a “for good” tool that enables the endowment and Stacks Foundation to trade against known whitelisted stacking pools, removing the 2% fee bleed. It’s not that the Foundation will power the entire order book, but rather optimize fees specifically for users stacking with known pools and make the rewards conversion mechanism fully auditable on-chain instead of happening off-chain through shady entities. It’s a win-win scenario where pools get zero fees and the Foundation gets Bitcoin exposure through verified counterparties.

@Fleetz - Thanks for the kind words and ecosystem support! You’re absolutely right about the 1-2% bleeding affecting stackers’ actual returns. As Warren Buffett said, “Compound interest is the eighth wonder of the world” - and that 1-2% saved every cycle compounds significantly over time for stackers. For the liquidity part - the 2nd milestone includes a feature that allows the Stacks Foundation and/or the endowment to set a bag of STX that gets auto-traded against whitelisted stacking pools at oracle market prices. This creates sustainable liquidity specifically for legitimate pools while giving the Foundation automated Bitcoin exposure.

Updated grant application with the $10k per milestone structure (audits excluded) can be found here: Stacking Rewards Optimizer - Transparent On-Chain Infrastructure Eliminating Hidden Fees · Issue #7 · stacksgov/sip31-interim-grants · GitHub

2 Likes
#8

i’ve used Rapha’s P2P platforms before with converting BTC to sBTC. Solid and smooth UX.

what would be the minimum STX liquidity you think would be needed to get something sustainable in the beginning?

#9

Since this proposal relies on the endowment providing STX liquidity, how will risks like impermanent loss or liquidity depletion be mitigated over time?