This proposal would create four new Supercharged Liquidity pools:
- SEI/OSMO 0.2% Spread
- SEI/OSMO 0.05% Spread
- SEI/USDT 0.2% Spread
- SEI/USDT 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 are for the newly launched SEI mainnet.
Pairings with OSMO is standard for most new listings.
Pairings with USDT represent the stablecoin pairing.
The higher spread factors mirror the typical 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 but require more volume to reach the same fee generation and so are likely poor for initial bootstrapping purposes. The addition of two levels of the spread factor will enable the market to decide where liquidity reward collection is optimal as the markets grow.
About Sei
Sei is a general purpose, open-source Layer 1 blockchain specialized for for the exchange of digital assets. Leveraging a novel consensus and technical breakthroughs, Sei is the fastest blockchain in the industry.
Website: https://www.sei.io/
Target on-chain date: 21st August 2023
I am a bit curious about the reasoning behind acting so fast.
I have been following SEI and it is kinda controversial at the moment. It is very true they have certainly sparked a lot of attention with all the listings and promotions going on, but there is also a lot of noise involved.
At this moment they are just in beta and have not released a final product.
Are we “rewarding” SEI already with our prized not-freely-available-yet SuperCharged Liquidity to capture a piece of the pie with regards to trading volume against the CEX volumes?
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As with the other post, no real reason not to create pools.
The traffic around Sei has been huge, and they currently are forcing users to pass through Osmosis to transfer their ATOM to Sei. Having these pools will showcase Osmosis to the wave of users exploring Sei.
As for this being not freely available, almost everything that can be created with an OSMO pair is coming through on Wednesday with v17.
Wormhole pairings will likely be coming through this at the end of this week, roughly the same time as Sei will.
ATOM, USDC and ETH OSMO pairings following next Monday.
USDT pairings should also be going up en masse in the next few weeks.
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I share @LeonoorsCryptoman concerns. But since there is already a SEI/OSMO pool, pool #1086, with a 0.2% spread, perhaps a compromise would be to create just SEI/OSMO supercharged pools since someone already paid to create pool #1086, and allowing for the creation of SEI/USDT supercharged pools if/when one of the SEI/OSMO pools meets the OSMO in pool standard (50K OSMO if I am not mistaken) so that SEI can be accepted as an alt tx fee token.
Alternatively, like creating SEI/OSMO supercharged pools since someone already created a SEI/OSMO classic pool, if a SEI/USDT (or USDC) paired pool also pops up, I think it would be ok to create SEI/USDT (or USDC) supercharged pools.
Also are these supercharged pools being created in order that governance passes them? For example, if governance passes a proposal to create these pools, they would be created after the supercharged pools listed in proposals that governance has already passed right?
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The pools get created by the proposal itself - the one exception has been the signalling proposal for the bulk creation which goes in with v17 tomorrow.
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