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Supercharged liquidity pools to deploy on Osmosis

source-logo  blockworks.co 20 June 2023 20:31, UTC

Osmosis’ community governance has successfully authorized the deployment of supercharged liquidity pools, meant to give liquidity providers the ability to concentrate their liquidity within a specific range of assets.

Concentrated liquidity pools can help users specify their positions, giving them the opportunity to gain more rewards.

“Incentives are now based on the actual usage of the liquidity rather than spread evenly across all liquidity,” a proposal that outlined the implementation of supercharged liquidity pools wrote.

The proposal passed with over 96% of Osmosis community members voting in favor of implementing the pools, with less than 4% of voters choosing to abstain.

As part of the v16 upgrade, the community will deploy a DAI/OSMO supercharged pool linked to the classic Pool 674.

The creation of any new pools and existing pools that want to migrate to a supercharged liquidity pool must go through a governance process.

This will be necessary until all classic curve pools on Osmosis migrate to supercharged pools.

Once the migration of all curve pools is complete, Osmosis will enable the permissionless creation of pools that involve a limited selection of whitelisted assets; these too will be managed by community governance. The initial set of whitelisted assets upon the implementation of Osmosis’s Supercharged liquidity pool will include OSMO, USDC and DAI.

V16 upgrade is currently planned for the end of June, with the migration of major smaller pools estimated to pan out in early July and the migration of significant pools planned for mid-July.

A proposal to enable permissionless creation with whitelisted assets is estimated to go live in August.

blockworks.co