Proposal #214

Reduce OSMO/ATOM Pool Swap fee to 0.2%

Exec Legacy Content
passed
Expected result
Passed
Turnout / Quorum
42.32% / 20.00%

Voting period

Voting ended100.0%
Voting start 2022.04.29 at 21:04:54
Voting end 2022.05.04 at 21:04:54

Vote distribution

93.86%
82 355 458 osmo
Yes
0.23%
203 810 osmo
No
0.02%
16 007 osmo
Veto
5.89%
5 167 232 osmo
Abstain

Details

logo
Proposer
-
Total deposit
500 osmo
Submit time
2022.04.29 at 21:02:35
Deposit end time
2022.05.13 at 21:02:35

Description

Voting YES for this proposal would reduce the Pool 1 (OSMO/ATOM) swap fee from 0.3% to 0.2% \n\nVoting NO for this proposal indicates that the Pool 1 (OSMO/ATOM) swap fee should remain unchanged at 0.3%\n\n Background\n With the passing of Proposal 187 (Multihop Discount on Osmosis Pools) most trades should be routed through OSMO pools. \n OSMO pools mostly have swap fees set at 0.2%, however the major ATOM/OSMO pool (#1) has a swap fee of 0.3%. This causes some direct trades between ATOM/X to have a lower, or identical cost in swap fee to the multi-hop routes. As trades via OSMO pools usually benefit from their higher liquidity and so have lower slippage costs in comparison to non-OSMO pools they may still be the more optimal route for larger trades. The use of OSMO pools as the optimal trade route for user purchases is beneficial for Osmosis.\n Ideally this would be voted on purely by Pool 1 Liquidity Providers, however pool sub-governance is not functional yet and so this will be asked of all Osmosis governance and implemented during the next software upgrade if passed. \n Pool 1 Liquidity Providers specifically should see compensatory swap fees generated from the new routes passing through the pool as well as increased frequency of volatility harvesting as mentioned in the multihop proposal.\n\n Affected routes:\n From Identical swap fees to Multihop being having lower swap fees: ATOM/JUNO, ATOM/STARS, ATOM/CMDX, ATOM/LUM, ATOM/NGM, ATOM/IOV\n From higher swap fees in Multihop to Identical swap fees: ATOM/IXO, ATOM/DEC, ATOM/CHEQ\n\n For a full comparison of the swap fees by route before and after the change proposed see here: https://docs.google.com/spreadsheets/d/1yFI4S5wqDoC-WiUbWoLJ0dRbylqbvQ1ZTjpiN71lkGA\n\nFurther details and discussion: https://commonwealth.im/osmosis/discussion/4340-reduce-osmoatom-pool-swap-fee-to-02

Votes

Voter
Answer