This proposal signals that Supercharged pools composed of two Quote assets should be automatically included in the Osmosis incentives program.
This proposal builds on Proposal 638, which removed incentives from all non-strategic pairings by declaring that these pairings should be included by default.
This proposal asks for a narrower scope of strategic pools than Proposal 638 by only automatically making Supercharged pools with pairings of two Quote assets eligible for incentives.
Quote assets on Osmosis are currently:
Adding incentives encourages the formation of popular non-OSMO trade pairings, such as ATOM/USDC and ETH/WBTC, as well as promoting the creation of alternative OSMO pairings that already exist, such as an OSMO/ATOM pool with 0.05% spread factor.
Incentivizing these alternative pairings will reduce trader fees for popular trade routes by reducing the requirement for multihop trades, which are no longer discounted, and allowing liquidity providers to expand into lower fee pools without missing out on Osmosis incentives.
This reduction in fees for major routes should further increase the volume through Osmosis and increase taker fees for the protocol.
Further proposals will be needed to include new pools in the correct Volume Splitting Gauge for the pairing and adjust the incentives distribution to the new gauge.
Volume Splitting Gauges will continue to have incentives allocated to the pairing according to the methodology defined for pools in Proposal 578.
Target On-chain Date: 30th October 2023