This proposal would create six new Supercharged Liquidity pools, establishing initial Supercharged liquidity venues for IBC Native USDC:
- USDT/USDC, 0.05% Spread
- USDT/USDC, 0.01% Spread
- ATOM/USDC 0.2% Spread
- ATOM/USDC 0.05% Spread
- OSMO/USDC 0.2% Spread
- OSMO/USDC 0.05% Spread
Background
During the rollout period, the creation of Supercharged Liquidity pools is permissioned by governance as established in Proposal 532.
Choice of Pools
The proposed pools should be the most impactful to establish native USDC liquidity before rolling out to a wider range of pools.
The USDT/USDC offers an improved stable pairing in the Cosmos, with IBC native USDT via Kava being paired with IBC native USDC via Noble.
The ATOM/USDT and OSMO/USDT pairings provide trading locations for Osmosis’ most liquid volatile assets.
WBTC pool creation will be alongside the launch of Native WBTC. ETH pairing would require ETH to be the quote asset due to the 18 exponent issue still existing as stable tokens should ideally be the Quote asset when possible. This is deferred until the issue is resolved.
These pairings should quickly enable Native USDC liquidity in the most common routes.
The higher spread factors mirror the current spread factors used on Classic pools. The lower spreads will potentially be more efficient at collecting rewards for the same liquidity, as seen in other concentrated liquidity models. The addition of two levels of the spread factor will enable the market to decide where liquidity reward collection is optimal.
Target On-chain Date: 18th September 2023 (Blocked by Proposal 624)