Osmosis and Neutron are continuing to emerge as leading projects in the Cosmos ecosystem. I believe there is a lot to be gained by strengthening the direct collaboration between our communities and therefore propose to mutually bootstrapping each other’s ecosystem liquidity with valuable native assets.
Strengthen direct cooperation and the liquidity graph between Neutron and Osmosis by jointly bootstrapping 250K NTRN/OSMO liquidity on Osmosis and Astroport.
OSMO and NTRN are some of the most liquid tokens in the ecosystem, featuring high trading volumes relative to their respective market caps and serving as liquidity bridges in their respective ecosystems.
|Volume / MC
By bootstrapping OSMO / NTRN liquidity on both networks, we can increase the connectivity between the liquidity graph of each ecosystem and generate new arbitrage and onboarding opportunities, benefiting Osmosis’ volume as well as revenue thanks to Protorev and the Protocol fee.
Furthermore, this seems like a logical continuation of the cooperative history of the Neutron and Osmosis DAO:
As part of its work with Lido, Hadron Labs secured 1,000,000 AXL tokens to be deployed as incentives on Osmosis. Osmosis recognized Neutron’s wstETH denomination as and Hadron Labs prioritized the development on a 1-click bridge flow to Osmosis as requested by the community.
Increasing the direct collaboration between Neutron and Osmosis communities could have significant benefits to both projects. For example, joint grant funding that benefits both ecosystems for a fraction of the cost, and joint research and development initiatives that could result in technologies useful to both Osmosis and Neutron.
In the interest of time and simplicity, we propose to start with a minimal solution that can be deployed securely in the coming weeks, according to the following steps :
- Submit a proposal on Osmosis to transfer $250K worth of OSMO to a joint multisig on Osmosis
- Submit a proposal on Neutron to transfer $250K worth of NTRN to a joint multisig on Neutron
- Multisigs transfer 50% of the allocations over IBC
- Multisigs provide $250K of liquidity to the OSMO/NTRN pools on Osmosis and Astroport
We propose to maintain these positions for a year, but to enable the respective communities to signal their desire for the assets to be maintained as liquidity or returned to the DAO’s Treasuries freely via signaling proposals.
To simplify operations, once the final audit for Timewave’s Covenant contracts V2 has been released, the positions could be transferred to a dedicated covenant.
To perform these operations, we propose to rely on a simple 3/4 committee. We welcome volunteers and signers that the Osmosis DAO feels most comfortable with.
To ensure the liquidity is provided to the most adequate pool on Osmosis, we would like to gather the community’s preference between:
- Pool 1046 - NTRN OSMO (xyk)
- Or a new concentrated liquidity pool.
In the case of the latter, the range would have to be extremely conservative so as to ensure that price does not move out of bound as the liquidity would not be managed actively
Once this proposal is executed, if there is a desire from the Osmosis community to increase the NTRN liquidity available on Osmosis, a similar proposal to the Neutron DAO will be welcome.
The Neutron community will remain open to collaborating directly with the Osmosis community in the event that this proposal gets rejected.
We are excited to further the cooperation and economic ties bringing the Osmosis and Neutron communities together.