Pool Proposal - Operation Consolidation

1

Greetings community,

Considering the brutal bear conditions, I believe it is prudent to perform consolidation & simplification - acknowledging what liquidity has low demand. Thus, I would propose changes to “maintenance mode” a.k.a. 1 SHD of emissions per day.

I would propose the following to be converted to maintenance mode:

  • SILK / IST
  • OSMO/stOSMO
  • stOSMO/SILK
  • INJ/stINJ
  • SILK/stINJ

Additionally, as per @Jiricepelka.scrt recommendations, I would propose we remove the following pairs:

  • stkATOM / ATOM
  • qATOM / ATOM
  • stkATOM / SILK
  • qATOM / SILK

To replace these, two stableswap pairs would be started:

  • stkATOM / stATOM
  • qATOM / stATOM

Trades then look like: qATOM ↔ stATOM → SILK or ATOM ↔ stATOM ↔ stkATOM

This easily cuts 100+ SHD per day from emissions, and puts our staking derivative pairing infrastructure in a much more effective set up. Partner teams may be unhappy to hear about the cuts, but they are free to bring whatever incentives they’d like to these pairs - ultimately emission cuts during the bear market make a lot of sense, and most partners will understand / prefer to reduce emissions as is.

Note that in a bull it makes a lot of sense to revitalize some of these pairs.

Kind regards,
Carter W.

3 Likes
2

Full support, although my original goal was to remove only stkATOM/ATOM and stkATOM/SILK

qATOM has quite strong SILK liquidity in my opinion and can nagatively affect the amount of SILK minted by reducing the demand for it.

Anyway, yes, the market is in a condition where it probably makes sense to remove these incentives, saving 100 SHD/d is an important step.

3

I have examined the reward structure again, my conclusion is that if we want stATOM to become one of the primary tokens for liquidity and to be used as part of the LP pairs for SILK collateral, the Stride team should at a minimum either match Quicksilver and pSTAKE in the rewards that will go into those pairs, or match Shade in stATOM/ATOM and stATOM/SILK

Without Stride’s involvement I don’t find this move as beneficial for Shade, if Stride steps up I would consider it a win-win move.

1 Like