We are excited to announce that Chaos Labs has been awarded a grant from the Osmosis Grants Program and will partner with Hathor Nodes on optimizing the Osmosis incentives program.
Osmosis is the largest interchain DEX on the Cosmos ecosystem, with over $268M in TVL, and its incentives program is one of its core features. Approximately 547.9K Osmos (~$870K) are distributed daily among Liquidity Providers, Stakers, Developers, and the Osmosis Community Pool. At the moment, 45% of these Osmos go to Pool Incentives.
In collaboration with Hathor Nodes, we are evaluating how Osmosis can optimize Osmos distribution to drive user acquisition and exchange volume growth.
This is a repost from the Osmosis Grants announcement here
The new incentives model aims to optimize LP incentive allocations across pools and significantly reduce costs for Osmosis by ensuring that the protocol is not overpaying for liquidity. The end result is an improved trading experience for users by reducing slippage for under-incentivized pairs. This model also aims to reduce governance overhead associated with regular incentive adjustment proposals, as it will be dynamic and partially automated.
We have divided the Incentive Recommendation Grant into a milestone-based roadmap.
- Milestone 1
- Implement data pipelines and simulation dashboards using the data collected from Hathor Nodes. New incentive recommendations will be based on varying market volatility, volume, liquidity, and more.
- Milestone 2
- Chaos will collaborate with Hathor to create a governance proposal that will detail an initial set of parameters for a new incentive distribution model and propose a full-fledged incentives system.
- Milestone 3
- Submission of a governance proposal for a new incentives system based on data engineering and web application development efforts.
- Milestone 4
- Successful governance proposal and implementation of a new incentives system.
- Milestone 5
- Delivery of community-facing dashboards.
We are already in the midst of implementation! We’re excited to begin contributing to the Osmosis community. We’ll be sharing product developments with the Osmosis community over the coming weeks and look forward to your feedback!
About the Osmosis Grant Program
If you want to learn more about the Osmosis Grants Program, check out their blog.