Supportive of this proposal.
To echo Sunny’s comments, Osmosis is the most popular onchain venue for trading both ATOM and stATOM. In addition, ATOM and stATOM also see significant usage in Osmosis’ ecosystem of DeFi applications - Mars, Levana, Membrane, etc. Users have a clear preference for using ATOM on Osmosis, and deploying ATOM liquidity where there is the greatest demand to use it makes sense.
While enabling increased onchain usage of ATOM would be the primary goal of this protocol-owned-liquidity (POL) position, let’s quickly consider the economic angle. Assuming $200,000 average daily volume in the stATOM/ATOM CL pool, and assuming the Cosmos Hub POL position captures half that volume - given the 0.3% swap fee on the pool, the position would generate $109,500 annualized. This is a very conservative figure, as it uses a low average swap volume and does not include OSMO and STRD incentives. A more realistic figure would be ~$250,000 of annual revenue.
To put that figure into perspective, $250,000 is roughly the same as the current total annualized revenue from ICS payments from all partner chains combined.
Taking a step back, Osmosis has always been highly supportive of Cosmos Hub and ATOM. Ever since Osmosis launched, back in June of 2021, it has continuously devoted more internal incentives to its ATOM/OSMO pool than to any other. And as a result, Osmosis has always offered the best experience for trading ATOM onchain.
So to sum up, this proposal would increase onchain usage of ATOM and stATOM, while at the same time generating significant revenue for Cosmos Hub. And after all, Osmosis has always been highly aligned with Cosmos Hub.