Willszal / Greg this is quite an amazing proposition being put forth by the Regen Network!
It just goes to show how truly committed the Regen team and community is to finding avenues for mutual value accrual within the Cosmos ecosystem while walking the walk with regard to showing selfless support for the vision of an internet of blockchains.
It looks like the discussion has started and centered around the potential use of an Osmosis Community Pool allocation of these $REGEN tokens as additional Liquidity Mining incentives through the gauges. I’d like to propose something that has received much discussion in the Ion Governance Working Group TG chat, the concept of protocol owned liquidity.
How would the Regen community feel about locking in say 1M of the 1.4M REGEN tokens that would be endowed to the Osmosis Community Pool into Pool #42. This would require ~650k OSMO from the Osmosis Community Pool be matched based on current token prices and would amount to the creation of ~$6M worth of Protocol Owned Liquidity which would create a floor level of liquidity for the REGEN token on the Osmosis DEX.
I’m looking at this as a (,) move to avoid the potential toxic liquidity trap of using these tokens purely as Liquidity Mining incentives and instead create persistent liquidity that is more useful to the growth of both Regen and Osmo communities.
I would propose that the liquidity would be added to the pool but NOT bonded to any gauge so there should be no dilution of existing liquidity mining incentives to existing LPs, although the increased depth of the pool could have some implications in how incentives are calculated going forward (would have to defer to @Unity | Chaos or @Jeremy Parish on those mathematical particulars). Swap fees would be diluted as the POL would get it’s share of those.
I’m seeing the process be something like this:
1 - Regen side would entail the mutli sig IBC transfer to the Osmosis Community Pool
2 - A pair of Osmosis governance props for community spends to a multi sig wallet to receive the 1M REGEN & ~650k OSMO (community pool spends can only handle one amount and address)
3 - If the proposals pass then those in control of the multi sig would make the transaction to add the tokens as liquidity to Pool #42
4 - Then multi sig fund-community-pool transaction(s) would be made to send the acquired GAMM-42 tokens and any leftover OSMO’s back to the osmosis community pool.
If this does indeed come to fruition, to me, this act would reverberate through the Cosmos as a rallying cry for more zones/hubs to collaborate and find the means to create alignment of objectives so we can all grow together!
Then the remain ~400k REGEN could be allocated to gauges as additional mining incentives down the line or held for a period to assess if they too should be added as more liquidity to Pool #42 to further raise the floor of liquidity for REGEN on Osmosis.