This proposal asks that the incentives program migrates from incentivizing USDC.axl pools to the equivalent IBC native USDC pairings.
With Proposal 624, Osmosis governance has recognized IBC native USDC via Noble as the canonical version of USDC.
This status comes with the promise that the canonical status of USDC will receive higher incentives than the non-canonical version.
This proposal would cause the transfer of incentives from the currently incentivized USDC.axl pools to the equivalent newly created USDC supercharged pools over a period of at least two weeks, culminating in removing the USDC.axl pools from the incentives system.
|Current Pool||Pool Number||Spread Factor||Daily OSMO Spend||New Pool||Pool Number||Spread Factor|
|OSMO / USDC.axl||1133||0.2%||5,370.63||OSMO / USDC||1221||0.2%|
|USDC.axl / USDT||1080||0.05%||89.22||USDT / USDC||1220||0.05%|
|USDC.axl / USDT||1081||0.01%||89.22||USDT / USDC||1220||0.05%|
As there is no bonding period for Supercharged liquidity pools and the Transmuter is in place for users to easily transfer their position between these pools, the two-week period only applies to the OSMO/USDC.axl pool, which is still undergoing migration from the original bonded Classic pool.
This proposal, therefore, directly transfers all native incentives from the USDC.axl/USDT pools to the new USDT/USDC pairing as well as directly transferring half of the current OSMO incentives from the OSMO / USDC.axl pool to the new OSMO / USDC pool.
The remaining incentives in the OSMO / USDC.axl pool will be moved to the OSMO / USDC pool in the next routine incentives proposal, expected at the start of November.
Target on-chain Date: 3rd October 2023
Clarification: External incentives on these pools are currently loaded weekly by the SubDao created in Proposal 593. These incentives will migrate to the USDT/USDC pools over a 2-3 week period as this spend was intended to incentivize USDT liquidity rather than USDC liquidity and this should be best spent on fully native pools for the lowest eventual maintenance APR that required less security compensation.
This proposal does not directly impact this process - but if it was to fail, then the working group would reconsider the rate of this migration.