Great idea, I would like to collaborate on this.

We should differentiate asset transfer (bridge) with asset conversion (swaps). I assume you are looking to implement swaps, hence the liquidity needed.

I spent some time researching atomic swaps between KSM and DOT. Apart from the tech, there are some legal and financial challenges:
- operating an exchange - we would need some legal advice
- order book - we need a way for DOT and KSM holders to find each other - smart contract or pallet 
- oracle - where would the platform get up-to-date exchange rates?
- margin - what % goes to fees, how do LPs get rewarded, is there any compensation for developers etc.

As reference, there is an implementation of 
- atomicswap pallet, and 
- [XMR BTC atomic swap](https://github.com/comit-network/xmr-btc-swap)


[@METASPAN](HyLisujX7Cr6D7xzb6qadFdedLt8hmArB6ZVGJ6xsCUHqmx-kusama) Yes, this initiative related to swaps, specifically for incentivizing holders of KSM and DOT to add liquidity to the **pool 11** in the asset conversion pallet in Kusama AssetHub. The way the system is currently designed, whenever somebody adds liquidity to a pool they get LP tokens in return, the LP tokens don't have any utility but can be transferred to other parachains where they can be used to claim rewards/incentives for example. That's the plan I propose, we deploy a smart contract in Kreivo that will take care of the reward distribution for people that bring their LP tokens.

About the legal implications of operating an exchange, it's outside of my domain but I suspect it's not an issue for the underlying permissionless asset convert infrastructure, I guess it becomes relevant for teams that use said infrastructure to create a UI like dotswap.org

Order books are outside of the scope of asset convert pallet but I agree we need a place for KSM and DOT holders to find each other. A bit related, we are not looking into high performance order books(yet) but hope at some point a "OTC DAO" will form in Kreivo that can make use of the nft based "listings" system we planned and the payments pallet with its built-in escrow to enable people trade larger quantities at fixed prices.

I'm not sure I get the concern about the oracles in this context as the price of a pair is given already by the share of one token vs the other in the pool, but I can use this chance to mention that trading pairs in AssetHub can be used as "XCM powered oracles", for example Kreivo won't need its own dex to allow paying fees in different tokens as it can use AH as an oracle and read the price of a given asset compared to KSM if the pair exists.

Talking specifically about the current [configuration](https://github.com/polkadot-fellows/runtimes/blob/main/system-parachains/asset-hubs/asset-hub-kusama/src/lib.rs#L411) of KAH, there's a fixed LP fee of 0.3% and if the incentives initiative moves forward LPs would be getting rewards by staking their LP tokens with the smart contract deployed in Kreivo. As the smart contract needs to be developed, deployed and funded by *someone*(e.g. a Kreivo DAO), I imagine said entity would take care of requesting funds to the treasury not only for the LP incentives but also to cover the development costs.

Time to celebrate the sister chains can talk and share with each other! 

I'm excited to announce the creation of a KSM/DOT liquidity pool on Kusama's AssetHub. With the recent launch of the Polkadot-Kusama bridge, this pool aims to enhance the synergy between these sibling networks that share more than just code, offering improved liquidity and seamless asset swaps, while also helping to bring more attention from the Polkadot community to Kusama, showcasing our innovative capabilities.
To ensure the long-term success and growth of this pool, I propose implementing an incentives plan for liquidity providers. The plan would feature:

- Rewards distributed in KSM, sourced from the Kusama treasury
- A smart contract deployed on the Kreivo parachain to manage reward distribution
- Time-locked rewards to encourage sustained liquidity provision

This structure aims to align incentives with the long-term health of the Kusama ecosystem while leveraging the advanced capabilities of the Kreivo parachain.
I'm reaching out to our community to start a discussion on how we can best support and grow this pool. Your input is crucial in refining this incentives structure and ensuring its success. What are your thoughts on this initiative? How can we improve the proposed plan?
Let's collaborate to make this pool a cornerstone of interoperability within our shared ecosystem, and a showcase of Kusama's innovative spirit!

### Summary

- A new KSM/DOT liquidity pool has been created on Kusama's AssetHub, leveraging the Polkadot-Kusama bridge.
- The pool aims to improve liquidity and asset swaps between Kusama and Polkadot.
- An incentives plan is proposed to support the pool's growth, including rewards in KSM from the Kusama treasury.
- Rewards will be managed by a smart contract on the Kreivo parachain and will be time-locked to encourage long-term liquidity provision.
- Community input is sought to refine the incentives plan and ensure its success.
- The goal is to make the pool a key example of interoperability and innovation within the Kusama ecosystem.

Liquidity incentives for KSM<>DOT pool

Summary