We’re thrilled to unveil the first batch of grant funding since the launch of the third iteration of the Osmosis Grants Program. This batch includes 2 grants for a total of $109,000 in funding.
You can learn more about each grant below, including specific project and funding details.
Incentive Optimization Working Group
$84,000 (in USDC)
Hathor Nodes
$72,000 (Retroactive)
This is a grant to fund Hathor Nodes for previous and ongoing incentive optimization and leadership of the incentives working group. Hathor Nodes is a repeat grantee, having previously received a grant for researching and deploying an optimization model for Osmosis liquidity incentive expenditures. This was implemented as Osmosis’s canonical incentives mechanism as part of Osmosis proposal 578, which also formed an incentives working group to maintain and improve the incentives mechanism over time. Since that time, Hathor has done additional incentive optimization work outside the scope of the original grant as part of his involvement in the working group. This includes amendments to the incentive optimization algorithm based on the following: - Algorithm constraint refactoring to accommodate Mars Protocol liquidity requirements - Balancer to Supercharged liquidity migration incentive mapping - Osmosis volume splitting gauge implementation as part of the v20 Upgrade - Algorithm TWAP constraint refactoring based on protorev arbitrage resiliency These optimizations have resulted in a net liquidity incentive expenditure decrease of approximately 9,000 OSMO per day ($492,000 annualized at current prices). The total number of OSMO incentive expenses saved by the working group has exceeded 1 million OSMO, and can be tracked here. Hathor also maintains the incentive mechanism on a monthly basis by generating data that is implemented into monthly incentive adjustment proposals. Work involved in this maintenance includes monitoring incentives and liquidity via the Chaos Labs Dashboard, data quality testing, double-checking algorithm results to ensure no miscalculations make it into production, organizing and leading incentive working group meetings twice a month, and optimizing existing code.
The grant will maintain continued functionality of the incentives mechanism and help ensure that Osmosis does not overspend on liquidity
Sycamore Tax
$25,000
Defiant Labs
$6,250 (in USDC)
Defiant Labs is a repeat grantee, having been funded to launch and maintain Sycamore Tax in 2023. Sycamore is a transaction parsing tool that scrapes an address’ transaction history and returns CSVs in a format easily readable by popular crypto tax platforms like Accointing and Koinly. Using the tool, Osmosis users can more easily review and compile their transaction history to make reliable tax reporting simpler.
The grant funds maintenance of the tool for the entirety of 2024, as well as the addition of new message types that are not currently supported or may be added to Osmosis in 2024. Examples include the swap and forward message type used by the Skip API.
