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.