SFS for Osmosis IST/OSMO Pool

I was wondering if there is community support to seek SFS (superfluid staking) status for the IST/OSMO pool.

The IST/OSMO pool has approximately 3x more liquidity and for the month of March 35% greater volume than the USDT/OSMO pool in which enabling SFS is currently being voted on.

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Thanks for starting this discussion here! Looking forward to seeing comments and feedback from other community members. To start off by building on your comment here I gathered some data on other SFS pools. Focusing on stablecoins IST:OSMO is 3rd behind USDC and DAI respectively, but has more liquidity than USDT:OSMO (though USDT has higher 24hr volume).
IST has more liquidity than 10 SFS pools and higher 24hr volume than 8 of those. Based on this observation there looks to be a strong case to be made for IST:OSMO to be supported as an Osmosis SFS pool.

Pool data (approx. at the time of writing)

Pool Liquidity Volume (24 hrs)
USDC:OSMO $16,317,777 $1,895,782
DAI:OSMO $2,746,878 $101,250
IST:OSMO $1,075,375 $26,361
wMATIC:OSMO $639,131 $15,965
REGEN:OSMO $612,677 $11,205
wBNB:OSMO $533,749 $17,339
wDOT:OSMO $532,195 $8346
BLD:OSMO $512,278 $20,061
NGM:OSMO $374,988 $9190
USDT:OSMO $365,476 $47,113
wAVAX:OSMO $326,007 $10,799
HUAHUA:OSMO $250,202 $13,748
wFTM:OSMO $210,960 $8725
XPRT:OSMO $184,780 $28,522

Edit: added BLD:OSMO pool to chart

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Here are some other data points to consider:

From Nov. 2022 to March 2023 liquidity in the IST/OSMO pool has increased by 59%. In comparison, liquidity in USDC/OSMO and DAI/OSMO pools have seen a 46% and 50% decrease in liquidity, respectively.

stablepool

There is roughly 520K OSMO in the pool, of which at the current 50% SFS discount rate, approximately 260K OSMO would go towards securing the network through staking. In comparison, when SFS status for the STRD/OSMO pool was enabled the STRD/OSMO pool had only a total of approximately 277K OSMO in total, and of which 135K would go towards securing the network through staking (Source: Gov Prop 419 - Interchain Explorer by Cosmostation). When SFS was enabled for the NGM/OSMO pool, there was roughly 200K OSMO in the pool that went towards securing the network. (Source: Gov Prop 361 - Interchain Explorer by Cosmostation)*

While I haven’t looked closely at the figures for the BLD/OSMO pool, it seems that along the objective metrics of liquidity, volume, and number of OSMO tokens that a strong case for enabling SFS for it as well can be made as well and with IST being built on Agoric it seems it would make sense to seek SFS status for it as well.

I thought it was important to first breach the subject here first and have the support of the IST community (and from the Econ Committee whether it be implicit, explicit, or even tacit) before initiating the subject on Osmosis Commonwealth.

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Thanks for starting this thread and sharing the thoughtful analyses @RedRabbit @JDLorax. I agree we have a strong case to make to the Osmosis community for enabling SFS on IST/OSMO and BLD/OSMO.

I’m also interested in hearing thoughts from econ committee members, but personally am supportive and appreciate the initiative!

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To any and all that are interested, I just started the following discussion thread on Osmosis Commonwealth requesting that SFS be enabled for both the IST/OSMO and BLD/OSMO pools along with a more comprehensive analysis justifying SFS for both pools is provided.

See: Commonwealth

I hope I did not step out of line by moving forward with such a request.

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FYI:

The proposal to enable SFS for the IST/OSMO and BLD/OSMO pools is currently on-chain. Voting for the proposal will end on May 3.

Big thank you to Luisqa from Interbloc for sponsoring the proposal, Osmosis validator Leonoor’s Cryptoman and Johnny Wyles from Osmoisis for their support.

If anyone is looking for quality validators to delegate their OSMO to, I hope they will consider Interbloc and Leonoor’s Cryptoman.

Leonoor’s Cryptoman is also validator on Comdex, Stride, Quicksilver, HuaHua, Omniflex, Passage, Terratori, and BitCanna.

Interbloc is also a validator on Juno, Stride, Bitsong, and Evmos. (Interbloc is also a merger of two validators, Coldy and Zenith Station)

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Appreciate that you took the lead with this and helped get it to the onchain voting period. I was happy to see this proposal come from a community-led initiative. Big ups to you @RedRabbit!

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@JDLorax thank you!

It will be interesting to see what effects SFS. I suspect that it will allow Osmosis to compete more effectively for IST (and stablecoin liquidity) and BLD liquidity, which benefits the entire Cosmos ecosystem.

SFS also seems to perhaps have acted as a leading indictor for tokens like AXL and STRD. While there are many factors to consider, it will be interesting to see if there is any substantial boost to see if the market is perhaps reacting to which tokens with liquidity pools receive SFS status.

=)

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