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Jun 19 β€’ 15 tweets β€’ 6 min read Twitter logo Read on Twitter
Concentrated Liquidity is coming to Osmosis!

What is Supercharged Liquidity?
Proposals #432 & #433 (implementing CL & incentives)

READ this to get up to speed!πŸ§΅πŸ‘‡ Image
In short, Supercharged Liquidity is the @osmosiszone implementation of concentrated liquidity pools. This aims to improve pool depth to provide better experience for users.

To begin, let's explain Osmosis Proposals #532 & #533 πŸ‘‡πŸ§ͺ
Firstly,

Osmosis Proposal #532
Supercharged Liquidity Pools Rollout

β€’ Signals approval of CL rollout dubbed 'Supercharged Liquidity'
β€’ Implementation in a future upgrade proposal (V16)
β€’ Proposal PASSED!

Main details of Proposal #532, summarised by Chat-GPT 🀝πŸ§ͺπŸ‘‡ Image
How will Supercharged Liquidity pools be implemented? (1/2)

1⃣ Upgrade the Osmosis chain & include CL

2⃣ Create DAI/OSMO pool as the first CL pool

3⃣ Allow users to migrate from Existing --> Supercharged Pool

4⃣ Permissioned creation & migration for some Major Pools
How will Supercharged Liquidity pools be implemented? (2/2)

5⃣ Permissioned creation & migration of some stable & minor pools

6⃣ Permissioned creation & migration of remaining Major pools (higher liquidity pools)

7⃣ Proposal for Permissionless creation of Supercharged Pools
The rollout process is expected to last from late JUNE --> early AUGUST

Full information of proposal #532 & the process of implementing Supercharged liquidity pools:

commonwealth.im/osmosis/discus…

Also check out this thread on the same information, written in a different way! πŸ‘‡
NOTE ❗

Concentrated liquidity improves AMM efficiency by increasing depth of liquidity at a particular range. This also allocates more incentives for LPs within the specified range

There are risks however.

For more information check out this thread by a fellow #Cosmonaut πŸ‘‡
Secondly,

Osmosis Proposal #533
Supercharged Incentives Model

β€’ A new incentive model for CL pools
β€’ Designed to incentivise migration from classic --> CL pools
β€’ Proposal PASSED!

Main details of Proposal #533, summarised by Chat-GPT 🀝πŸ§ͺπŸ‘‡ Image
Currently, pools are allocated a share of $OSMO emissions as incentives (Column L)

As new pairs are added or incentives are adjusted, distribution of emissions changes

Sheet:
docs.google.com/spreadsheets/dβ€¦πŸ‘ˆ

So, how are incentives allocated when introducing a Supercharged pool? πŸ‘‡ Image
1⃣ A Supercharged pool goes live, users need to migrate liquidity to the new pool, or face a 5% penalty to incentives

2⃣ $OSMO incentives are allocated to a specific range in the new pool

3⃣ Liquidity concentrated in this range will receive a greater portion of incentives
NOTE

β€’ Liquidity that isn't ranged will still receive rewards
β€’ Liquidity in old pools will still receive rewards initially but with a penalty
β€’ Non-ranged liquidity will not receive as many rewards as CL positions

Make sure to migrate liquidity to the new pool! 🀝πŸ§ͺ
When managing LPs

β€’ CL positions cannot be superfluid staked
β€’ Incentives are allocated to a range (reducing APR for normal positions)
β€’ Rewards are claimed manually for CL positions
β€’ No bonding period for CL positions

More details on proposal #533:
commonwealth.im/osmosis/discus…
Remember! Concentrating liquidity requires more management of your position & has higher risks of IMPERMANENT LOSS.

An exact explainer of incentives and liquidity will be released in the near future by @osmosiszone

Meanwhile, check out this UX teaser for Supercharged pools πŸ‘‡πŸ§ͺ
'Supercharged Liquidity' is a major step forward in enhancing the already great exchange's product & user experience!

User flows will change! We believe in learning through repetition.. so check out a fellow #Cosmonaut's thread on Osmosis Supercharged liquidity πŸ‘‡
Thanks for reading!

Like, share & RT this thread to help spread the word and educate #Cosmonauts on the latest updates for $OSMO!

If you wish to support Stakecito on Osmosis you can delegate to our validator on @keplrwallet πŸ‘‡πŸ™πŸ§ͺ

wallet.keplr.app/chains/osmosis…

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More from @stakecito

May 2
Liquid Staking is an essential piece of the puzzle for birthing the $ATOM economic zone!

The full potential of ATOM can be unlocked, beginning with Proposal #790: Add Liquid Staking Module to the Cosmos Hub. πŸ‘‡πŸ§΅ Image
Before we dive into proposal #790, some resources πŸ‘‡

A) What is (Delegated) Proof-of-Stake?


B) What is Liquid Staking?
docs.stride.zone/docs/what-is-l…

Also check out the proposal:
mintscan.io/cosmos/proposa…

And FULL detailed draft:
forum.cosmos.network/t/signaling-pr…
So.. What is Proposal #790?

A signalling proposal to add a Liquid Staking Module (LSM) to the Cosmos Hub, replacing the current staking, distribution & slashing modules

If passed, a future software upgrade proposal will be submitted on-chain for voting to add the LSM (Q3 2023)
Read 12 tweets

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