Adding MsgCreateBalancerPool into Approved ICA Messages list

Proposal Discussion
1

Dear Osmosis Community,

We humbly present this formal proposal, seeking the community’s approval for the integration of MsgCreateBalancerPool into the list of ICA approved messages on the Osmosis Mainnet. This crucial proposal endeavors to advance the Cosmos ecosystem by providing an efficient and secure method for facilitating liquidity creation and incentivizing community involvement.

Background

The growth of the Cosmos ecosystem has brought forth challenges common to emerging projects striving to establish value, fungibility, and community engagement. A pivotal concern for these ventures is the creation of sufficient and sustainable liquidity, which proves to be particularly daunting for projects without significant financial backing.

Existing Approaches

Presently, two prevailing strategies address the liquidity challenge: external incentives and internal incentives. While external incentives offer a short-term boost to liquidity by rewarding liquidity providers, they may inadvertently impact long-term sustainability due to potential increases in circulating supply. Conversely, internal incentives, if sanctioned by stakeholders, can also foster liquidity, but their efficacy may diminish over time, especially in the context of a dynamic market environment.

Qwoyn Studios’ Innovative Solution

To overcome these communal hurdles, Qwoyn Studios has diligently developed an innovative on-chain, decentralized solution, aptly named Qwoyn Aquifer. Guided by principles of stability and utility in tokenomics, the Qwoyn Network community will establish a primary liquidity pool anchored to a stable asset, in this case axlUSDC. By mitigating the effects of market fluctuations on the governance token, this approach ensures the token’s value derives from utility and the active participation of stakeholders.

Qwoyn Aquifer Module and MsgCreateBalancerPool

The Qwoyn Aquifer module represents a robust and sustainable liquidity mechanism. It empowers users to acquire $QWOYN tokens by depositing USDC into the module, leveraging an automated IDO-like process with adjustable vesting periods. Subsequently, the deposited USDC is paired with $$QWOYN tokens from the Aquifer matching reserve, culminating in the expansion of the liquidity pool. This carefully crafted methodology cultivates a balanced ecosystem wherein users access tokens on-chain while simultaneously cultivating requisite liquidity for enhanced fungibility.

Proposal

Having diligently conducted comprehensive local testing of the Qwoyn Aquifer module, we are now resolute in submitting this proposal, which advocates for the inclusion of MsgCreateBalancerPool into the approved ICA messages on the Osmosis Mainnet. This crucial integration shall afford projects the capacity to deploy the Qwoyn Aquifer module effectively, empowering new initiatives to surmount liquidity and token distribution challenges.

Conclusion

In conclusion, we beseech the esteemed members of the Osmosis community to lend their invaluable support to this proposal, culminating in the seamless integration of MsgCreateBalancerPool into the esteemed list of ICA approved messages. We ardently believe that this enhancement shall prove instrumental in fostering an interconnected and vibrant Cosmos ecosystem, fostering a decentralized and enduring solution for liquidity and community involvement.

We extend our profound gratitude for your time and consideration and eagerly anticipate the opportunity to contribute further to the growth and prosperity of the Cosmos ecosystem.

To learn more about aquifer please see this medium article or visit our githubs aquifer module specs.

Respectfully,

Daniel Pittman, Founder Qwoyn Studios

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2

Thanks for your message!

I roughly understand where you want to go with the Aquifer model (nice naming btw looking at the meaning of the word ^^). Some questions;

  • did you already test this on the Osmosis testnet to ensure it works as desired?
  • are there risks involved in adding the command to the approved ICA list?
  • will projects need to deploy their pools on the QWOYN chain, or is it more like a module which can be integrated in their own chains as well?
3

Thank you very much for your questions. and thanks for the complement about the name, we felt it worked pretty good too :slight_smile:

  1. Testnet Validation: Yes, we have thoroughly tested the integration of MsgCreateBalancerPool on the Osmosis testnet to ensure its seamless functionality and compliance with the desired objectives. You can review the successful implementation on the Osmosis testnet through this link.
  2. Risks Assessment: While every effort has been made to ensure the robustness and security of the proposed integration, it is essential to acknowledge potential risks. Adding MsgCreateBalancerPool to the approved ICA list introduces the possibility of unforeseen interactions with other protocols or smart contracts. However, we have taken a diligent approach to testing, minimizing potential risks. It is crucial for the community to remain vigilant and conduct further audits if deemed necessary to mitigate potential vulnerabilities.
  3. Deployment Flexibility: The proposed Qwoyn Aquifer module is designed to be highly versatile and not exclusive to the QWOYN chain. The module is intended to serve as a standalone solution that can be seamlessly integrated into other projects within the Cosmos ecosystem. We actively encourage and support other projects to deploy the Qwoyn Aquifer module on their own chains to foster liquidity and community engagement within their respective ecosystems.
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4

Thanks for your reply!

Not other further questions :stuck_out_tongue:

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