[MRC-2] Osmosis LP Rewards

Summary

This proposal aims to 1) obtain 750k MARS from the community pool funds and 2) use these funds to reward liquidity providers on the MARS-OSMO pool on the Osmosis Dex for a period of 1 month.

Abstract

We propose to reward MARS-OSMO liquidity providers on the Osmosis Dex to the sum of 750,000 MARS for 1 month. We also propose here that the Mars Community pool fund this expense.

Motivation

This LP reward program is designed to increase the MARS governance stake of persons who contribute to the functioning of the Mars ecosystem by staking in MARS AMM pools (LPs)–thus making MARS readily available for those who wish to use it in the Mars ecosystem. As this forum post on commonwealth indicates, the Osmosis community pool and incentives pool are also intended to provide OSMO rewards to such LPs.

Specification

The objective of this LP reward program is to target a MARS-OSMO pool liquidity of approximately 30% of circulating supply at launch.

To do so, we propose the community pool provide 750k MARS to provide linearly distributed rewards to MARS-OSMO LPs for a month.

We expect this program to attract enough liquidity to this pool that would allow for better price discovery at this initial stage.

This LP rewards program is strictly for those LPs that have bonded for 14 days.

Risks

Risks involved in the proposal may include, among others::

  • The proportion of the circulating supply targeted to be bonded could fall short of the intended target
  • LPs might fail to bond for 14 days and instead bond for a reduced period.

In the event either of these 2 risks manifest, additional MIPs should be submitted to amend the reward staking program.

Implementation

The MARS community fund is held on the Mars Hub blockchain. Accordingly, if the proposal is approved, the required MARS would be IBC’d from the Mars Hub to the appropriate Osmosis external gauge.

Disclaimers/Disclosures

This proposal is being made by Delphi Labs Ltd., a British Virgin Islands limited company. Delphi Labs engages in incubation, investment, research and development relevant to multiple ecosystems and protocols, including the Mars Protocol. Delphi Labs and certain of its service providers and equity holders own MARS tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the “Delphi Digital” brand. Delphi Digital’s associated entities and/or equityholders or service providers of such entities may hold MARS and may have financial interests related to this proposal. All such entities, service providers, equity holders and other related persons may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Osmosis/OSMO. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.

This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.

9 Likes

We support this proposal. Sufficient liquidity is needed to ensure a diverse decentralized set of stakeholders around the cosmos. Incentivizing LP will help create a better distribution and network security.

1 Like

Although creating an LP token has risks, it will be beneficial for the development of Mars Protocol and expanding its product range. I support this proposal

1 Like

I fully embrace this proposal

Is this the time when MARS goes live on Osmosis or is that the next proposal to pass?

1 Like

seems expensive, but I guess its the way of the AMMs

1 Like