Proposal: SCRT on Osmosis - Early pool incentives to mitigate slippage and boost liquidity

Great idea. You have my support on this!

1 Like

That is a big yes for me as well.

If this gets the go ahead from the foundation then perhaps Luna/Secret pairs can also be added at a later date to the Pools if Atom and Osmo Pairs take off?

2 Likes

I like the idea, but the proposal lacks figures/goals IMO. Ideally, SCRT should be one of the most liquid/traded pairs on Osmosis – I’d say on par with its size which I believe is 3rd after ATOM and LUNA/UST.

Assuming this, I imagine we should provide rewards somewhere between what LUNA provides and what smaller chains provide. My guess is there’s an inverse correlation between rewards and organic demand. Could someone post more exact $ figures on what the main 5 IBC chains are providing, alongside how much liquidity and trading volume their respective pairs have?

I think based on that it would be easier to land on the right figure.

Also, how does OSMO rewards work. Do they automatically match reward? Do they give preference to particular chains? We should figure this out and see if there’s a business development effort to be made prior to landing on a final decision.

I’d say let’s move fast, but let’s get that data first.

Brendan Secret Agent
@guy does SCRT Labs plan on helping with incentivized pools, or should this be community funded?

This is more properly funded by the community pool, given the decentralized nature of the exchange and how it’s been done in other chains. That said, we’re open to looking into providing rewards as well (perhaps we match with the community pool?)

6 Likes

Unfortunately there isn’t a lot of data around it right now. There are only 5 pools that are externally incentivized right now, 2 of which being from Juno, and 2 from BCNA. Luna pools will be additionally incentivized soon, but it’s not active yet.

However, with Juno’s incentives, it had taken spots 3 and 4 of liquidity.

Luna’s rewards will be ~$6200 USD per day 0, Juno’s is ~$35,000 1, and BCNA’s is ~$4,000 per day 2. As the current proposal stands, SCRT would incentivize ~$4000/day. It’s also worth noting that BCNA is roughly liquidity spot 25 at ~600k USD each (as of this writing). Now, BCNA is also a newer project so that isn’t terribly surprising.

If you want to increase the incentives to be between Luna and Juno, are you in favor of doubling the incentives to 400 SCRT per pool per day, which would become ~$8000 USD per day, or perhaps triple to $12,000? Currently Juno’s market cap is ~400M 4, vs Luna’s 20.4B 5.

I have reached out to several Osmosis community leaders about this, and they outlined a 3-step process, of which I’ve already begun implementing:

  1. A proposal on the Osmosis chain for Osmosis incentives. 3
  2. A proposal from the native chain to add external incentives, which happens in tandem with the Osmosis proposal above.
  3. A final proposal on the Osmosis chain for Osmosis matching incentives.

5 Likes

This is actually all the data that’s needed. Thanks!

I think based on the numbers, it makes sense to give ~$10k rewards across the two pools. We’re happy to take half of the burden, so that would only require increasing the proposal to 45K (and we will match 45K on our end). However, we’re conditioning this on Osmosis community also taking their part and contributing an equal amount in OSMO.

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Excellent, I’ll revise the proposal above and get the ball rolling on initial incentives.

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Awesome work Schultzie. I was talking about this at the conference to a few people, but you were way ahead of the game here. Will be happy to vote on both chains for these proposals.

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Being involved in SCRT staking , SEFI LP & Osmosis, all of which I am more than happy with. The combining of Cosmo & SCRT through my Kelpr wallet could only increase the usage of both systems. Found Osmosis to be reliable & easy to use over the last 5 months.
So, Yes

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definitely yes from me

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At $5000/day, this comes to $450,000 over the 90 days. At current rates ($7.6), that comes to 59,210 SCRT.

The proposal is live: https://secretnodes.com/secret/chains/secret-4/governance/proposals/64

Most Definitely YES but
This sounds a little better
1-day bonding 45 SCRT/day
2-day bonding 100 SCRT/day
3-day bonding 135 SCRT/day
Maybe???

SCRT/ATOM
1-day: Mintscan - Chain explorer by COSMOSTATION
7-day: Mintscan - Chain explorer by COSMOSTATION
14-day: Mintscan - Chain explorer by COSMOSTATION

SCRT/OSMO
1-day: Mintscan - Chain explorer by COSMOSTATION
7-day: Mintscan - Chain explorer by COSMOSTATION
14-day: Mintscan - Chain explorer by COSMOSTATION

Frontend PR: Add SCRT External Incentives by dylanschultzie · Pull Request #107 · osmosis-labs/osmosis-frontend · GitHub

2 Likes