Summary

-To ensure stTIA trading liquidity on Osmosis, 75,000 STRD will be deployed as incentives over the next three months

-An additional 75,000 STRD for another three months is tentatively planned, for a total of 150,000 over six months

-The Osmosis trading pool to be incentivized is stTIA / TIA, pool #1476

-The STRD incentives are sourced from the Stride Incentive Council, which received STRD from the Stride community pool

-Incentives will be live today

Importance of LST trading liquidity

Since its launch nearly two years ago, Stride governance has always undertaken to ensure the availability of trading liquidity for Stride LSTs.

Liquidity for LSTs makes them far more useful, as users can instantly swap out of an LST. Furthermore, LST trading liquidity is needed for lending applications, like Mars and Inter Protocol, to support LSTs as collateral. For leverage apps, LST trading liquidity often serves to provide an oracle price; the deeper the liquidity, the more resistant the oracle price is to manipulation.

Currently, deep liquidity for stATOM and stOSMO on both Osmosis and Neutron is being maintained through protocol-owned-liquidity deployments from the Cosmos Hub and Osmosis community pools. In addition, stEVMOS, stJUNO, and stSTARS trading liquidity is being maintained through similar arrangements. This is an ideal way to maintain liquidity, as it incurs no cost to Stride governance.

Incentives for stTIA

Given the strategic importance of stTIA, it is vital that adequate trading liquidity be maintained. And so the Incentive Committee, to whom Stride governance has delegated incentive decision-making, has determined the above-mentioned incentive plan for stTIA.

Although directly incentivizing liquidity through use of STRD is unsustainable in the long run, over the history of Stride it has proven to be an effective short-term solution. Over the long run, a more permanent solution to stTIA trading liquidity will be sought.

As mentioned above, the Incentive Council is deploying 75,000 STRD to an Osmosis stTIA/TIA trading pair, with a three month duration. Thereafter the Council is likely to re-up incentives at the same rate for a further three months, for a potential total of 150,000 STRD over the next six months.

The stTIA incentives will be live today. Notably, this incentive program is the only incentive program currently being undertaken by the Stride Incentive Council.