Proposal #888

Reduce incentives on ETH grouping

Exec Legacy Content
passed
Expected result
Passed
Turnout / Quorum
94.28% / 20.00%

Voting period

Voting ended100.0%
Voting start 2025.01.08 at 18:08:53
Voting end 2025.01.13 at 18:08:53

Vote distribution

91.70%
179 222 737 osmo
Yes
0.13%
245 223 osmo
No
0.00%
3 190 osmo
Veto
8.17%
15 972 197 osmo
Abstain

Details

logo
Proposer
osmo19w2t4ue7qpdh6022...
Total deposit
1 600 osmo
Submit time
2025.01.08 at 18:08:53
Deposit end time
2025.01.22 at 18:08:53

Description

This proposal would reduce the incentive emissions allocated to ETH. \n## Current Liquidity \nETH Liquidity on Osmosis is currently limited. The main ETH/USDC pool has 20k in liquidity, while ETH/BTC has only 8k. Both are incentivized but are failing to attract additional liquidity. \n\nThe current emissions to the Volume Splitting Group (VSG) of ETH/BTC and ETH/USDC are 1,956 OSMO per day, a 200%+ subsidy to the swap fees. This is currently the only volatile VSG to which Osmosis emits incentives to at a greater rate than the protocol revenue generated by the grouping. \n\nThe lack of ETH liquidity on Osmosis has a subsequent impact on liquidity only connected to ETH, such as the protocol-owned ERC-20 token liquidity, established in Proposal 802, and wstETH liquidity, a premium collateral asset which is currently at cap on Mars. \n## Requested Incentive Adjustment \nIncentives will remain on ETH pairings at a reduced rate of 500/day, an LP fee subsidy level similar to BTC/STABLE of 50%. This will make this Volume Splitting Group break even regarding Protocol Fees generated compared to emissions. \nForum Thread: https://forum.osmosis.zone/t/deploy-eth-btc-liquidity-and-reduce-incentives-on-eth/3391

Votes

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Proposal #888: Reduce incentives on ETH grouping - Osmosis (OSMO) Mainnet Explorer