Proposal: Begin to brainstorm liquidity bootstrapping measures for gravity dex

Hi,

With the decentralized finance providing a solid use case for what cryptocurrencies can be used for The immense success that we have seen other DEX’s accrue through proper liquidity mining and bootstrapping incentives (Sushiswap, Uniswap, Osmosis, and more recently the success of Avalanche and projects on AVAX), I believe that it’s time we begin to discussion for how should we think about bootstrapping liquidity and providing an incentive for users to bridge their assets into Cosmos.

This is a proposal to begin brainstorm ideas around bootstrapping the Cosmos ecosystem, starting with Gravity Dex liquidity. We have to have these discussions now because the space moves quickly and we need to fight for attention span among future investors and users.

Gravity DEX is a huge step forward for Cosmos and this is a unique opportunity to ride this momentum towards a more self-sustaining and vibrant ecosystem (e.g. how BSC took the opportunity of high gas fees on Ethereum and now they have a self-sustaining economy). These opportunities do not come often and we need to be thoughtful but also decisive in our approach. With the proper set-up and cryptoeconomics, I believe that now is the time to think about methods of bootstrapping the Cosmos economy and how we can create a successful flywheel effect that will sustain and grow in the coming months and years.

Thanks for your time and hopefully we can come up with some interesting ideas!

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Hi. David. Thanks for raising this issue.
Our team is also seriously considering methodologies for incentivizing Gravity DEX liquidity.
Below are our current technical effort to give the Cosmos Hub ability to source, plan and distribute liquidity incentivization.

Budget Module for planning and spending of Atom inflation by governance : GitHub - tendermint/budget

Farming Module for planning and distributing rewards for any kind of incentivization scheme : GitHub - tendermint/farming

We started designing and implementing these two modules for the Cosmos Hub for several months.
It is likely that these two functionalities will be adoption ready in 2 months from now.
When it is adopted on Cosmos Hub, liquidity incentivization for Gravity DEX is possible by governance.

It is up to the atom staker community to decide belows by governance procedure.

  • adopt above 2 modules on Cosmos Hub
  • how many proportion of Atom inflation should be utilized for Gravity DEX liquidity incentivization
  • list of pools we want to incentivize for
  • how long we want to provide the incentivization
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