- Problem Statement: The Genshiro DEX and money market are experiencing low levels of liquidity, hindering users' ability to trade and borrow. This issue affects all users of the Genshiro ecosystem.
- Significance: Low liquidity levels in DeFi protocols can lead to users' unwillingness or inability to utilize the system, affecting the overall growth and adoption of the ecosystem.
- Proposed Solution: The Genshiro team proposes to attract KSM liquidity into the protocol, distributing it among different products and pools to facilitate KSM DEX trading and borrowing. This includes allocating 5,000 KSM to a market maker pool, 15,000 KSM to a borrower pool, and 5,000 KSM to an insurance pool.
- Expected Outcomes: The proposal aims to promote KSM adoption, increase liquidity for in-protocol financial products, and enhance cross-chain communications within and beyond Kusama. The success metrics include achieving specific trading volume targets, maintaining average spread and liquidity numbers, and ensuring a certain amount of KSM is borrowed by users. If the goals are not met, all funds will be returned to the Kusama treasury at the end of the program period.

#1630 Liquidity funding proposal for Genshiro Money Market and DEX