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As discussed over DM, I feel some clarification here is helpful - It is NOT that i dont think Luna incentives on

@osmosiszone

is not valuable. It absolutely can be.

But I think if the Terra Community Pool is funding incentives, 1) the funds should be spent intelligently to maximize $UST adoption on Osmosis, 2) be done for the right reasons

First off, I think $LUNA incentives should be used to create a matching program for incentives for all pairs that use $UST as a quote currency. As for how much to each pool, think initial pools to be funded should be: OSMO-UST LUNA-UST USDC-UST

And we should absolutely apportion incentives for other pools, such as $XPRT-$UST $REGEN-$UST $AKT-$UST And others. These incentives should be matched dollar for dollar for incentives provided by each project, and should scale as other projects join the ecosystem.

Thoughts on incentives to $ATOM: I think $OSMO should be in the long term the vol quote currency of Osmosis and $UST the stable quote currency - Having two quote currencies for one dex is simply a waste of capital and is likely going to fragment liq

4:10 AM · Oct 18, 2021Twitter Web App

Think about what happend to $ETH pairs on most CEXs vs BTC pairs $ATOM pools should exist and should be incentivised, but competing with $OSMO on its own turf for liquidity (or at least incentivised competition) seems to be a waste of capital.

Replying to

Disclosure: I hold more $ATOM and $OSMO than anyone likely to comment on this thread. Capital efficiency drives my advice to the Terra community, not tribalism. Osmosis should have one vol quote currency, not many.

Replying to

As for the right reasons, it is inappropriate for the OP to claim that providing incentives on Osmosis "exposes Luna to the wider IBC ecosystem."

Mathias

@cryptolonggame