In yesterday’s IP spaces, there was a discussion about how reducing Collateralization Ratio will make it more appealing from a user’s perspective. Here’s another idea for boosting IST vault creation: sponsor the swap fee for CALC strategies. When you create an IST vault, you face the challenge of deciding where/how to deploy your IST, given the limited liquid options. This often leads to deploying via using CALC, which incurs a 0.5% swap fee.
To alleviate this cost, Agoric/Interprotocol could consider utilizing community funds to cover this fee for a limited time and value. For instance, sponsoring a 10 million swap would amount to a 50k $. This approach could potentially render IST Vaults more enticing, while also generating an interchain effect by connecting the Agoric ecosystem with other applications (you could also ask CALC project to put ad on their site to promote this offering).
I think this is interesting idea and has merit. Subsidizing CALC transaction costs for IST holders/users I think would generally also help increase the number of IST holders/users, particularly among axlDAI, axlUSDT, and axlUSDC holders/users on Osmosis.
While the Osmosis community has been reluctant to match BLD external liquidity incentives for the IST/OSMO pool, matching BLD community funds to subsidize CALC transaction costs for those using IST I think is a whole different story.
If the BLD community is looking to subsidize 10 million IST CALC transactions on Osmosis, I don’t think it would be unreasonable to see if the Osmosis community would match that. I think it would be a win for IST, Osmosis, and CALC.
I wonder too if a program like should be partially funded via a small and temporary increase in the cost of tx fees when using IST on Agoric. The additional IST that is collected would reduce the need to use community BLD funds.