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This proposal asks that the incentives program migrates from incentivizing WBTC.axl pools to IBC native WBTC pairings. This proposal directly moves half of the incentives from WBTC.axl pairings to WBTC pairings with the other half being moved at the next routine incentive proposal.

Background

With [Hidden link], Osmosis governance has recognized IBC native WBTC minted on Osmosis as the canonical version of WBTC.

This status comes with the promise that the canonical status of WBTC will receive higher incentives than the non-canonical version.

This proposal would cause the transfer of incentives from the currently incentivized WBTC.axl volume splitting gauges to the newly created WBTC volume splitting gauges over three weeks, culminating in removing the WBTC.axl pool from the incentives system.

This proposal directly transfers half of the current OSMO incentives from the OSMO / WBTC.axl pool to a combination of the OSMO / WBTC and WBTC / STABLE Volume Splitting Gauge groups.

This proposal also performs a routine move of incentives from individual pools to the VSG created in [Hidden link].

The remaining incentives in the OSMO / WBTC.axl group and the WBTC.axl/STABLE group will be moved to the OSMO / WBTC and WBTC/STABLE grouping in the next routine incentives proposal, expected at the start of March, meaning that both pools will receive a share of incentives for two to three weeks.

Liquidity for the WBTC.axl asset will be maintained by the incentivization of a WBTC.axl/WBTC pool as well as unsubsidized swap fees.

OSMO / WBTC.axl Current: 1894 This Proposal: 947 March Incentives: 0

WBTC.axl / STABLE Current: 111 This Proposal: 111 March Incentives: 0

OSMO / WBTC Current: 150 This Proposal: 624 March Incentives: 1571 (Subject to normal adjustment)

WBTC / STABLE Current: 250 This Proposal: 723 March Incentives: 834 (Subject to normal adjustment)

Forum Thread: [Hidden link]