Migration of Incentives from OSMO/axlUSDT to OSMO/USDT

Proposal Discussion Liquidity Incentives
1

Migration of Incentives from OSMO/axlUSDT to OSMO/USDT

This proposal asks that the incentives program migrates from incentivizing the axlUSDT/OSMO pool to the pools comprising the OSMO/USDT Supercharged pairings created in Proposal 579.

Background

With Proposal 574, Osmosis governance has recognized USDT via Kava as the canonical version of USDT.

This status comes with the promise that the canonical status of USDT will receive higher incentives than the non-canonical version.

This proposal would cause the removal of incentives from the OSMO/axlUSDT pool at the next incentives proposal, removing the pool from the incentives system. As incentives proposals now occur monthly rather than weekly, this will take place in a single proposal, with the passing of this proposal being advanced notice of the change.

The two OSMO/USDT Supercharged pools created in Proposal 579 will be added to the incentives system at the next incentives proposal.

Both pools are added to the incentives system to allow the optimal spread factor to be used from the two options of 0.20% and 0.05%. The pools will therefore be incentivized based on their performance. As there is no bonding period for normal Supercharged liquidity, this should encourage the movement of liquidity between the two pools as required to provide optimal trading liquidity. This represents a movement towards the incentivization of pairs rather than pools.

Target on-chain date: No earlier than 14th August 2023

1 Like
2

Did you mean 0.20% and 0.05%?

Will SFS be enabled on both supercharged OSMO/USDT pools?

3

Yes, and yes I would think so, but not immediately. Figured we would make that another prop in the future.

1 Like
4

Following our own guidelines regarding incentives on native assets, this is a go.

1 Like