External Incentives

Osmosis not only allows the community to add incentives to gauges. Anyone can deposit tokens into a gauge to be distributed. This feature allows outside parties to augment Osmosis’ own liquidity incentive program.

For example, there may be an ATOM<>FOOCOIN pool that has a one-day gauge incentivized by governance OSMO rewards. However, the Foo Foundation may also choose to add additional incentives to the one-day gauge or even add incentives to a new gauge (such as one-week gauge).

These external incentive providers can also set up long-lasting incentive programs that distribute rewards over an extended time period. For example, the Foo Foundation can deposit 30,000 Foocoins to be distributed over a one-month liquidity program. The program will automatically distribute 1000 Foocoins per day to the gauge.