RFP: Quasar + Osmosis Vault Strategies

RFP alert! In partnership with Quasar, the Osmosis Grants Program is looking to fund high-quality teams to build decentralized asset management vaults for deploying strategies to Osmosis. We hope that this is the first of many interchain grant initiatives that aim to accelerate the development of positive sum partnerships across the ecosystem. 

Quasar is a decentralized asset management (DAM) appchain for the creation of the first ever IBC-enabled vaults. These vaults are CosmWasm contracts that utilize Interchain Accounts (ICA) and Interchain Queries (ICQ) to execute strategies across any connected IBC chains. Quasar vaults can provide access to a wide range of sophisticated strategies such as passive yield, leveraged trading, and custom ETFs, among many others.

What are the benefits for Osmosis? 

• Increased TVL: All assets deposited through OGP-funded vaults will be deployed to the Osmosis AMM and other applications built on Osmosis
• Decreased TVL Volatility: capital deposited into vaults is predictable and oriented for the long-term, which should decrease TVL volatility for Osmosis. 
• Increased Volume / TVL Ratio: while the experience for depositors is similar to a passive LP position, the vault strategies will be actively trading this capital on the AMM. The combination of sticky but actively traded TVL will improve the capital efficiency of Osmosis.   

What is the structure of the grant and how will teams be evaluated?

• The OGP and Quasar will review applications on a case-to-case basis and evaluate potential funding based on the quality of the team and proposed strategy.
• Quasar will match any funding provided by the OGP for vault creation.  

What are qualities that we are looking for in these strategies?

• For Osmosis: strategies that actively trade on the AMM and utilize other Osmosis applications
• For depositors: algorithmically managed strategies that aim to provide a steady, predictable return for depositors

If you’re interested in building a Quasar vault that deploys capital to Osmosis, please apply here. In your application, please be sure to include detail on your background, the proposed strategy, and the benefits it would provide for Osmosis and Osmosis users.