Proposal #670

Preapprove Incentives for Quote Asset Pairings

Exec Legacy Content
passed
Expected result
Passed
Turnout / Quorum
95.68% / 20.00%

Voting period

Voting ended100.0%
Voting start 2023.10.30 at 11:14:10
Voting end 2023.11.04 at 11:14:10

Vote distribution

94.42%
187 285 235 osmo
Yes
0.00%
3 838 osmo
No
0.00%
368 osmo
Veto
5.58%
11 067 189 osmo
Abstain

Details

logo
Proposer
-
Total deposit
1 600 osmo
Submit time
2023.10.30 at 11:14:10
Deposit end time
2023.11.13 at 11:14:10

Description

This proposal signals that Supercharged pools composed of two Quote assets should be automatically included in the Osmosis incentives program. \n\n## Background \nThis proposal builds on Proposal 638, which removed incentives from all non-strategic pairings by declaring that these pairings should be included by default. \n\nThis 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. \n\nQuote assets on Osmosis are currently: \n* USDC \n* USDT \n* DAI \n* WBTC \n* ETH \n* ATOM \n* OSMO \n\nAdding 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. \n\nIncentivizing 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. \n\nThis reduction in fees for major routes should further increase the volume through Osmosis and increase taker fees for the protocol. \n\nFurther 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. \n\nVolume Splitting Gauges will continue to have incentives allocated to the pairing according to the methodology defined for pools in Proposal 578. \n\nForum Thread: https://forum.osmosis.zone/t/automated-incentives-for-quote-asset-pairings/480

Votes

Voter
Answer