Summary

This proposal aims to deploy 20M OSMO to the stOSMO/OSMO stableswap pool 4 (#833).

Doing so would eliminate the need to spend internal OSMO incentives for stOSMO liquidity, reducing OSMO emissions. Furthermore, this would create deep stOSMO liquidity, enabling Mars to safely approve stOSMO as collateral. Membrane and Levana would also likely be able to use stOSMO as collateral.

The amount of OSMO specified was calculated using Mars' rigorous Risk Framework. This amount would enable Mars to safely add stOSMO as collateral, with decent parameters.

The OSMO would be sent to a 4/6 signature scheme DAODAO multisig controlled by trusted community members. The multisig would provide the OSMO as liquidity, and then transfer the resultant LP tokens to the Osmosis community pool.

So instead of the 20M OSMO sitting idle in the community pool, it would be sitting in the stOSMO/OSMO pool, facilitating efficient stOSMO trading and generating fee revenue for OSMO stakers. And by holding the LP tokens, Osmosis governance would have complete control of the liquidity position.

Governance votes

The following items describe the voting options and their significance for this proposal:

• YES: You wish to deploy 20M OSMO to the stOSMO/OSMO stableswap pool, to enhance Osmosis DeFi
• NO: You do not wish to deploy OSMO protocol owned liquidity
• NO WITH VETO: You 1) consider this proposal to be spam, 2) believe it infringes on minority interests, or 3) believe it violates the rules of engagement as currently set out by Cosmos Hub governance. If the number of NoWithVeto votes is greater than a third of total votes, the proposal is rejected and the deposits are burned
• ABSTAIN: You wish to contribute to quorum but you formally decline to vote either for or against the proposal See full details and the community discussion on the forum: https://forum.osmosis.zone/t/deploy-20m-osmo-to-the-stosmo-pool