Create Supercharged Pools: Community Requests

Proposal Discussion
1

This Proposal is open for additions while Supercharged liquidity pools are permissioned. If there is a Supercharged pool that you want to see that is not included in another proposal and is not an 18 exponent token (most EVM assets), please post below with a brief reason to add.
Pairings must include a quote asset of:
ETH
USDT
OSMO
or ATOM

This proposal would create many new Supercharged Liquidity pools, which have either been requested by the community, are upcoming listings, initialized on StreamSwap, or historically had insufficient liquidity compared to trading demand without receiving incentives.

Stablecoin Pairings

  • SILK/USDT 0.05% Spread
  • USK/USDT 0.05% Spread

Like Pairings

  • YieldETH/ETH, 0.05% Spread
  • ETH.hole/ETH, 0.05% Spread
  • USDT.axl/USDT, 0.05% Spread

Composable Pairings

  • KSM/OSMO, 0.2% Spread
  • KSM/USDT, 0.2% Spread

StreamSwap Alumni

  • PASG/USDT, 0.2% Spread
  • MPWR/USDT, 0.2% Spread
  • QSR/USDT, 0.2% Spread
  • PICA/USDT, 0.2% Spread
  • NLS/USDT, 0.2% Spread
  • LORE/USDT, 0.2% Spread
  • FLIX/USDT, 0.2% Spread

High Slippage pools

  • ARCH/USDT, 0.2% Spread
  • KUJI/USDT, 0.2% Spread
  • LUNC/USDT, 0.2% Spread
  • LUNA/USDT, 0.2% Spread
  • NTRN/USDT, 0.2% Spread

Requested

  • BCNA/USDT, 0.2% Spread
  • CUDOS/USDT, 0.2% Spread
  • JKL/USDT, 0.2% Spread
  • MANTA/OSMO, 0.2% Spread
  • REGEN/USDT, 0.2% Spread
  • SHD/USDT, 0.2% Spread
  • USDC.hole/OSMO, 0.2% Spread
  • WHALE/USDT, 0.2% 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 those that have either been requested by the community for listing or have struggled to gain sufficient liquidity to facilitate trading by having consistently high swap APR and no incentives.

As these are currently tail assets on Osmosis, they are being created with just the one higher spread factor, which should make LPing more profitable for immature markets compared to the current pools in use.

This is 0.2% for volatile assets and 0.05% for Stable or Equivalent pairings.

SILK and USK Supercharged pools add USDT pairings for two stablecoin projects that have never been incentivized outside of their native chains.

YieldETH brings Sommelier’s Real Yield ETH strategy into the Cosmos over the Axelar bridge. The addition of a Supercharged liquidity pool for this should allow functional trading to occur with minimal barriers from bridging fees.

Wormhole pairings do not guarantee inclusion as verified assets, but provide an alternative liquidity route for assets transferred via Wormhole from Ethereum to trade on Osmosis until the future Transmuter contract is in use.

Composable is preparing to launch the IBC connection to Polkadot, and this proposal would create initial pairings as Supercharged pools.

StreamSwap alumni often have large pools from the initial launch, but have no stablecoin pairings. Several teams have requested Supercharged pools, so these are being proposed as a category.

Current volatile Classic pools:

  • ARCH - 1061 - 47% Swap APR
  • KUJI - 744 - 47% Swap APR
  • LUNA - 726 -18% Swap APR, functional liquidity currently failing to establish on Osmosis.
  • LUNC - 800 - 83% Swap APR
  • NTRN - 1046 - 68% Swap APR

Requested by their communities include USDT pairings for pools of BCNA, CUDOS, JKL, REGEN, SHD and WHALE.

MANTA will also be listed soon and wishes to have the liquidity efficiency that comes from the Supercharged pools.

Target on-chain date: 4th September 2023

6 Likes
2

Would love to see supercharged pools for:

  • stUMEE / UMEE (maybe)
  • stLUNA / LUNA
  • stINJ / INJ

These 3 assets are highly underrepresented on Osmosis.

With the exception of stUMEE (which recently got a stableswap on Osmosis) the LSTs listed above are not tradeable on Osmosis currently, forcing traders to astroport on each of these respective home chains.

We should create trade routes and LP routes for these assets (the base pairings of which already have OSMO pairs on Osmosis). An example usecase for these pools would be STRD stakers wanting to use Osmosis to convert their stAsset real yield staking rewards to other assets or LP them for additional yield opportunities.

The one i’m not certain about is stUMEE, bscause a stableswap could be preferable here as long as someone is adjusting the scaling factor.

Edit: stLUNA is tradeable but the pool is suboptimal.

1 Like
3

I should mentioned that they have to include the current quote assets of
WBTC
ETH
USDC
USDT
OSMO
ATOM

and the WBTC and USDC we should probably hold off for native

3 Likes
4

Carter from Shade Protocol here - would love to see a SHD/USDT pool.

Some stats on SHD:

  • ~$10M in SHD volume on ShadeSwap since May = $2.5M in SHD volume per month. This equates to ~$583k in weekly volume. If demand for SHD extends onto the Osmosis trader base, I would project this would make a SHD pool a rank #15-25 pool in terms of volume & fee generation.

  • ~$1.4M in pair TVL tied to SHD on ShadeSwap - this creates interesting arbitrage opportunities between Osmosis and Secret Network that can be captured. There is also a SHD/MNTA pool on Kujira that would also generate cross-chain arb.

  • There may be a large number of interested traders that are comfortable on Osmosis as their trade venue that don’t want to deal with the privacy friction of Secret Network but still want exposure to SHD

4 Likes
5

I would love to see AVAX /OSMO pool in supercharged . Can you also add this pair in the list.

1 Like
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Would also love to see that! Unfortunately, AVAX has 18 decimal places so we have to wait for a future upgrade to support.

1 Like
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My wish list:

  • CUDOS/USDT
  • BCNA/USDT

Really happy to see Silk/USDT on the list!

2 Likes
8

Ah, yeah forgot about that.

Ok, then I’d really like to see:

  • Wormhole USDT / OSMO
  • Wormhole USDC / OSMO
  • Wormhole ETH / OSMO

To open up a few more routes for Wormhole users to get to Osmosis. I can provide you with the denoms for these if you need them! These were registered on the chainregistry with the other Wormhole assets.

1 Like
9

I wonder whether ETH.worm/ETH and USDC.worm/USDC might be better alternatives here until we have a sustainable transmuter alternative available?

1 Like
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We could do those as well but it would be nice for people coming over via wormhole to have a place to put liquidity that gives them fee revenues.

This could also be used to arb against the transmuters in the event that Axelar assets end up outweighing the wormhole ones, as well as a direct hop route through OSMO.

Actually now that i think about it, we should do all 5 of these picks if possible! Eth / eth and usdc / usdc would help with counterbaling the transmuters as well.

1 Like
11

If we do this then we should also really do USDT.axl/USDT then.

All just as backstops in case transmuter is out of funds on one side.

2 Likes
12

When will permissionless supercharged pools be made available?

With there already being 25 pools on the list, and potentially at least 2-3 more based on @RoboMcGobo requests, and if permissionless supercharged pools won’t be available any time soon, by October 1 for example, I wonder if there should be a small fee requestors should have to pay, which you can collect and deposit into the community pool (minus the cost of at least a coffee or subsidize something stronger :beer: for your troubles as I definitely think you deserve it :smile:) to get on this list and ultimately create if governance approves the proposal, which you can deposit into the community pool to make things a little more equitable and less confrontational/controversial. Perhaps 5 OSMO per pool? With potentially 27-28 pools being created this go around, 5 OSMO per pool would generate 135-140 OSMO for the community pool.

Just thinking out loud here. More than happy to cough up 10 OSMO for the 2 pools I requested if governance approves the proposal. Hopefully other requestors are too.

1 Like
13

That makes sense to me! Will there be a transmuter pool with USDT?

Or do you mean there will be one for whUSDT / axlUSDT?

1 Like
14

There will be a transmuter pool for it, yes, but a 0.05% pool may even self sustain functional liquidity rather than relying on an altruistic maintainer. Worth a go!

2 Likes
15

Likely v20, main obstacles are:

  • repeat pools then competing for liquidity and further complicating routing
  • 18 exponent pools can technically be made, but if the spot price falls below a certain point they totally break so want to restrict those for now
  • tick spacing is set in these proposals. We probably should just settle on a default rather than that being the case.

The fee is more of an anti-spam measure rather than revenue source, I’m happy to get these up and running, there are several in this list I think could be great to have!

1 Like
16

It would be great to see an IST/USDT pool as well.
There is already a SuperCharged, SuperFluid pool (#1088) for IST/OSMO with >$500k liquidity, and adding an IST/USDT would be in alignment with the above proposal.
Sorry about not chiming in sooner, it seems the discussion was only about 5 days before it went to vote.

The proposal is for a Stablecoin Pairing: IST/USDT 0.05% spread

The current vote already has a 23% turnout (93% Yes), so this would require another Vote.
If there is any concern, please comment.
Target on-chain date: September 13, 2023

1 Like
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@JohnnyWyles

USDC.hole?

From both a Wormhole and USDC PR/marketing/advertising perspective, the suffix .hole has a meme-able quality to it, and not one I think Wormhole or USDC would appreciate very much being associated with.

Could I suggest using the suffix .whole for Wormhole bridged assets?

I would think .whole, like the adjective, would project a much better image for Wormhole bridged assets compared to .hole, like the noun.

1 Like
18

It’s actually going to be wh.USDC ^.^

1 Like
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@RoboMcGobo

Oh thank god.

But can I suggest using USDC.wh instead of wh.USDC?

The practice seems to be to use prefixes for classification of LSTs, like stATOM and wstETH for example, and suffixes for classification of bridged assets like USDC.axl, USDC.grav, and DOT.comp.

The use of prefixes for LSTs and suffixes for bridged assets are probably very helpful little trick our brains use to more easily and quickly distinguish an LST from a bridged asset from a native non-LST or non-canonical token when scanning through tokens on the asset page or searching for a token using the drop down menu on the swap page.

4 Likes
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My mistake, it will be a suffix! Check here for an example: Pool #-

2 Likes