Stargaze <> Osmosis Community Loan and LBP

Stargaze completed a Liquidity Bootstrapping Event on Dec 21 at 5pm UTC, achieving a market price of $0.107 for STARS.

The price started at $0.31, a bit higher than expected due to someone (a bot?) that aped in the second the pool was created. However, the curve ended up looking like a healthy reverse Dutch-auction, and achieved its intended function of distributing STARS and achieving a market price. As expected, the price fell like a falling knife in the beginning, until bottoming at $0.06. It then picked up towards the end to close at $0.107. Overall, 18M STARS were distributed during the LBP.

OSMO Community Pool Loan

The LBP was initiated with a 135,000 OSMO loan from the Osmosis Community Pool, a first of its kind DAO-to-DAO governance interaction in the Cosmos community.

The Stargaze community initiated a series of governance signaling posts and proposals to get buy-in from the Osmosis community:

Community Education

Since LBPs are still new in the Cosmos ecosystem, the Stargaze community did a lot of community outreach and education, with blog posts by Elizabeth Barnes from Figment Capital, and Xave Meegan from Chorus One that were widely distributed across Stargaze social media.

We also built an LBP simulation tool to assist the community in understand how LBPs work. It is open sourced here for other projects to use and learn from.

STARS/OSMO Liquidity Pool

After the LBP, the asymmetric pool converted into a regular 50:50 liquidity pool. This STARS/OSMO pool is live and open for trading on Osmosis now.

Staking rewards and liquidity incentives will be coming early in 2022. Stay tuned.

Loan Payback

The Stargaze community withdrew half of the liquidity from the LBP and paid back the OSMO loan with STARS on Dec 21. This resulted in diversifying the Osmosis community pool with STARS, and the Stargaze community pool with OSMO.

Calculations to pay back OSMO loan in STARS
Calculations to pay back OSMO loan in STARS

Transaction to fund the Osmosis community pool with STARS to pay back the loan:

Transaction to transfer funds over IBC from the Osmosis community multisig to the Stargaze community multisig:

And finally, Stargaze now has a reserve of OSMO in its community pool / treasury:

What Is Stargaze?

Stargaze is an interoperable NFT marketplace in the Cosmos ecosystem.

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