XPRT Liquidity Bootstrapping (XLB) incentives on Dexter and Osmosis - October 2023
Persistence Proposal 21 allocated 1M XPRT from the Ecosystem wallet to bootstrap XPRT liquidity on Dexter and Osmosis. So far, 683,700 XPRT tokens (68.37%) have been used via governance approval. In-depth insights around the use of the incentives, their efficacy, and learnings can be found in the public XPRT Incentives Log.
Proposal 40 allocated 21,000 XPRT tokens as 30-day XPRT/OSMO pool incentives. However, the Persistence Incentivization Multisig has not yet added these incentives. This was done to study and analyze the imminent introduction of Supercharged pools on Osmosis at the time.
Considering the above, this proposal suggests an approx. 15% reduction in XLB incentives after the current liquidity incentives end in the coming weeks. This suggestion is also influenced by three other key factors:
- Reducing token incentive spend while growing liquidity
- Striking a balance between staking and LPing XPRT
- Testing the waters with a 30-day period
The next leg of XLB incentives from the Persistence Incentivization Multisig in October 2023 is proposed as follows:
- Allocate 55,000 XPRT to ATOM/XPRT on Dexter for 7-day LP bonding over 30 days, starting around 8 October 2023
- Allocate 10,000 XPRT to XPRT/OSMO (Pool #1101) on Osmosis Supercharged Liquidity over 30 days, starting around 8 October 2023
Persisters are requested to share their feedback on the progress of XPRT Liquidity Bootstrapping (XLB) so far, the conservative incentivization approach taken, and vote on the on-chain proposal.
Hi in my opinion incentives on OSMOSIS must be deprecated, since OSMO removed incentives from all pools except just a few they consider “strategic” this was done in proposal #638, benefiting STRIDE in just 3 liquid staking assets STETH, STATOM and of course STOSMO, since OSMOSIS has close the door at more than 60 pairs incentivized i see no reazon to keep incentivation on their platform, all persistens must migrate their assets to DEXTER, and maybe DEXTER should add some of those disincentivized chains that looks promising in a form of new pools, OSMOSIS was a good place to provide liquidity and has a lot of diversity now they are focusing more on sofistication, soon with the supercharged liquidity nobody can be able to track an manage their position in pace whit the market because all of this would be managed by bots and algorithms, it remainds me high frecuency trade in traditional markets and maybe is the natural evolution of things for OSMO but this move open a new oportunity for us as a liquidity hub for COSMOS in general. Thanks.
Echoing here what was mentioned in the Community Chat:
It’s definitely an interesting proposition.
For now, looking at Osmosis data for the XPRT/OSMO pool (Osmosis Info) - the usage of the pool has surely declined but that decline was steep just for September and with the new pool: Osmosis Info, even with low liquidity there’s decent usage of this pool.
For token incentives - the incentives to pool 15 are most likely going to be stopped if proposal 48 passes (Mintscan) and the same incentives will be routed to pool 1101. Again incentives will be cut by more than 50% if the proposal passes
Incentives on Dexter will be 5x of the incentives on Osmosis