osmosis

Prop 759: Add 1% and 2.5% fee options for Supercharged Pools

This proposal would whitelist the fee options of 1% and 2.5% for Supercharged pool creation.

Background

Supercharged pools have a fixed list of parameters that can then be created. This minimizes the number of alternative pools that can be made for the same pairing, allowing for more straightforward routing calculations.

The current set of permitted Supercharged pool spread factors are:

  • 0%
  • 0.01%
  • 0.05%
  • 0.1%
  • 0.2%
  • 0.3%
  • 0.5%

These were selected to cover a good range of usable fee options for traders while keeping the selection minimal.

Proposed additions

With the rise of meme coin trading in high-fee pools across decentralized exchanges, this proposal asks that two new spread factors be added:

  • 1%
  • 2.5%

1% has become a standard trading fee for meme coins across decentralized exchanges. Enabling this allows these pools to use concentrated liquidity rather than being restricted to Classic pools, improving the use of the Osmosis chain as a venue for this activity.

2.5% is an alternative high-fee pool for extremely volatile or low-liquidity assets. 2.5% is proposed rather than 2% as pools were previously created in error on Classic pools by creators using the wrong number of decimals when intending to make the typical 0.2% initial pool, and this whitelist can then act as a final confirmation.

Forum Thread:https://forum.osmosis.zone/t/add-1-and-2-5-fee-options-for-supercharged-pools/2587