Batch 25: Approved Grants

This is a retroactive grant to Deividas Petraitis for a number of OSS code contributions made to the Osmosis github repository in May and June of 2024. Deividas is a volunteer developer that has made a number of small contributions and bug fixes to Osmosis in the last several months. Osmosis contributors recommended Deividas to the OGP as a potential grant candidate after being continuously impressed with his work.

This grant funds the Margined Protocol team to build a series of LST redemption rate arbitrage vaults for the largest LSTs supported by Osmosis liquidity pools. The vault design will allow users to deposit OSMO, TIA, ATOM, and more, which will then be used to purchase LST versions of these assets on Osmosis at a discount and unstake them with the relevant LST provider. Depositors will profit from the difference in value between the market rate of the LST and the LST's redemption rate. The vault is applicable to major LST providers that support a given asset and will optimize for the most profitable (i.e., the most discounted) arbitrage opportunity. Milestone 1: Deployment of TIA and OSMO vault strategies / Milestone 2: Deployment of ATOM vault strategy.

The Bitcoin Builders Conference is a side event to Bitcoin 2024, the largest Bitcoin conference in the world. The event will happen on July 25-26 at Acme, which is just a short walk from the Bitcoin 2024 conference in Nashville. The event will include thought leadership talks, panels, parties, dinners and networking with the top Bitcoin L2's. The organizers are expecting 500-600 registrants and have partners involved, including Stacks, Rootstock Labs, BOB, Botanix, OKX, Blockspace, Dfinity, Sovryn, Velar, Trust Machines, Hiro, and Aptos to name a few.

Since receiving a grant from the OGP 4 months ago, Hathor has continued to work with Osmosis contributors and the grants program to optimize LP emissions, and has delivered successfully on the entirety of the scope of work outlined in that grant proposal (including the 4 month maintenance period). As a result, the working group has slashed LP emissions further, leading to an additional 1.7 million OSMO in emissions reductions over the last 4 months (total: 2.7 million OSMO saved). This grant would fund ongoing maintenance of the incentives optimization mechanism until the end of 2024. During this time, Hathor will maintain the APIs and adjust the algorithm based on fluctuations in the market or addition / subtraction of certain assets. Hathor will also be working with the Osmosis Foundation team to design a bootstrapping model by which incentives are temporarily allocated to new strategic assets and then slowly phased out. In this approach, all pools are assessed as potential candidates for incentives. Pools in need of additional liquidity are given incentives for the month. Every month, incentives are disabled for all pools that do not meet the criteria. The model will need to be approved by Osmosis governance before going live. Payment structure is 3000 USDC per month from July through December 2024.