Proposal #888
Passed on 13 Jan 2025 with 91.7% of the votes for yes.
Yes
91.7%
99.9% without abstain
Veto
0.0%
of votes cast
Ended
13 Jan 2025
91.70%
of votes cast
8.17%
of votes cast
0.13%
of votes cast
0.00%
of votes cast
This proposal would reduce the incentive emissions allocated to ETH.
ETH Liquidity on Osmosis is currently limited. The main [Hidden link] has 20k in liquidity, while[Hidden link] has only 8k. Both are incentivized but are failing to attract additional liquidity.
The 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.
The 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 [Hidden link] and wstETH liquidity, a premium collateral asset which is currently at cap on Mars.
Incentives 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. Forum Thread:[Hidden link]