- Moderator edit to add link to on-chain proposal: Mintscan - Chain explorer by COSMOSTATION
Signal Proposal: Migration of Gravity DEX to a Separate Cosmos Chain
This governance proposal is to request approval from the Cosmos Hub community for the migration of Gravity DEX from Cosmos Hub to a separate Cosmos chain. By voting yes to this proposal, you agree that the Gravity DEX on Cosmos Hub should be migrated to a separate chain. When and if the proposal passes, another governance proposal will be submitted in near future to allow only withdrawal of funds from Gravity DEX.
1. History and Context
B-Harvest Team
The B-Harvest team consists of long-time Cosmos enthusiasts who have been actively participating in the Cosmos Ecosystem since 2018. B-Harvest has accumulated knowledge and experience in node operation from validator activities, but also through continuous R&D on Cosmos SDK and DeFi solutions.
B-Harvest has been closely collaborating with Ignite team and ICF since 2020 to design and develop multiple financial modules for Cosmos SDK, including the Liquidity Module (Gravity DEX protocol), and Farming, Budget, and Fundraising.
Gravity DEX and Emeris
The Liquidity module developed by B-Harvest is well-known as Gravity DEX protocol, which was funded and supported by the Ignite team. Gravity DEX has its strength in orderbook & AMM hybrid system and batch system, which allows a more capital-efficient and fairer decentralized marketplace.
The Ignite team collaborated with B-Harvest to provide the first web interface to integrate Gravity DEX protocol by developing the product called Emeris. Emerisâ vision is to provide various interfaces for IBC-enabled multi-blockchain environments.
Governances and Community Consensus
Early 2021, the Cosmos Hub community voted yes on adopting the Liquidity module (Gravity DEX protocol) on Cosmos Hub which was then deployed on Cosmos Hub in July 2021. In October 2021, Cosmos Hub community also agreed to adopting the Budget and Farming modules which are the necessary modules for allowing Gravity DEX to reward liquidity providers.
However, many Cosmos Hub community members raised concerns about utilizing Atom inflation for Gravity DEX farming. Not only does Atom inflation reduce staking rewards for Atom stakers, but more importantly, it is expected that the farming incentives of Gravity DEX will threaten the growth of other DEXs in the ecosystem. It was seen as breaking âCredible Neutrality,â which means that the Cosmos Hub should stay neutral in the general blockchain application area because it is the mother of the Cosmos ecosystem.
2. Migration of Gravity DEX Suggested
After many discussions with various Cosmos community members and core contributing teams, B-Harvest team, the creator of Gravity DEX, decided to suggest the migration of Gravity DEX to a separate blockchain for the reasonings below:
- Credible neutrality
From many discussions, we acknowledged that there are strong concerns that the existence of a competitive DEX on Cosmos Hub will significantly threaten the growth of new DEXs in the Cosmos ecosystem, thereby blocking open innovations of DEX and DeFi space in the Cosmos ecosystem.
- Adopting new features
Because the Cosmos Hub is a symbol of the entire Cosmos ecosystem and its development is overseen by many core entities, the community at large is very conservative on adopting new functionalities as resilience and security are seen as two major features that particularly differentiate Cosmos Hub from other Cosmos chains. This is being seen as a huge obstacle for Gravity DEX which needs to be continuously evolved over frequent upgrades with new functionalities.
When Gravity DEX is migrated to a separate Cosmos chain, the governance can be quicker and we expect a more positive sentiment toward decision on the adoption of new features.
Moreover, core genesis parameters related to inflation distribution and governance are just some of the parameters that can be customized to fit the ever evolving needs of Gravity DEX and its users.
- Liquidity incentives for Gravity DEX
B-Harvest realized that the Cosmos Hub community has significant disagreement on utilizing ATOM inflation for Gravity DEX LP rewards. Because ATOM tokens are the only potential source of farming for Gravity DEX on Cosmos Hub, it doesnât allow Gravity DEX to provide incentives for liquidity providers, therefore making the DEX a non competitive product in the Cosmos space compared to other DEXs that are running on their own chains and were able to build up their own tokenomics
However, if Gravity DEX is migrated to a separate Cosmos chain, it can create its own native token to be provided for liquidity incentives and also airdrop for ATOM stakers.
- More innovated DeFi features
When Gravity DEX is migrated to a separate Cosmos chain, B-Harvest team can provide improved Gravity DEX features and advanced connected financial features for DeFi investors in the Cosmos ecosystem. These advanced features will allow the Cosmos community to acquire better returns and risk management capabilities for their DeFi investment.
3. What Happens Next?
Sunsetting Gravity DEX on Cosmos Hub
When and if this governance proposal passes, it implies that the Cosmos Hub community agrees on sunsetting Gravity DEX on Cosmos Hub.
Crescent Chain
B-Harvest spun-off to establish a new project called Crescent, a team composed of 15 talented Cosmos SDK engineers and DeFi experts with a vision to pursue connected DeFi in the Cosmos ecosystem. Crescent is funded by Ignite Ventures and is collaborating with the Ignite team to support the Crescent project.
The plan is for Gravity DEX to be rebranded as Crescent DEX in the Crescent zone, improved and expanded with new features and more efficient order matching and liquidity providing methods.
Crescent Boost will also be one of Crescentâs most important features, providing leveraged and risk-managed DeFi investment utilities for the Cosmos ecosystem, by empowering IBC technology.
Crescent Derivatives will allow users to take leveraged positions by collateralizing their DeFi investment for better capital efficiency.
More Information about Crescent
Please visit Crescentâs medium blog(https://crescentnetwork.medium.com/) for more detailed information about Crescent Network, tokenomics and airdrop.
