Penumbra Community Call Notes - July 9, 2025

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Community Call #18 Summary: Liquidity Tournament Progress & Product Iterations

1. Liquidity Tournament: Tranche One Results & Tranche Two Kickoff

Penumbra’s Liquidity Tournament has successfully completed its first two-week tranche of rewards, with 100,000 $UM distributed evenly between delegators and liquidity providers.

Key Results from Tranche One:

  • 22 pages of unique delegator participation, with streaks growing over 8 epochs.
  • Liquidity providers (LPs) earned based on actual execution volume, not idle deposits.
  • Some LPs earned rewards with small but well-priced positions, showing that quality liquidity—not just size—wins.
  • Trading activity increased notably across pairs, especially USDC/UM and TIA/USDC.

Tranche Two:

  • A new proposal approved a second tranche: 150,000 $UM distributed over 21 days.
  • This round places slightly more emphasis on LP rewards to further bootstrap meaningful liquidity.
  • Voting and streak tracking continue

2. UX Enhancements & Bug Fixes in Vail

Thanks to community feedback, Penumbra Labs rolled out several user-facing improvements:

Liquidity Provisioning Improvements:

  • One-Click LP Tool: Streamlined interface with pre-filled curve shapes (e.g. stable or volatile presets).
  • Liquidity Presets help guide new LPs without requiring deep market knowledge.
  • Adjustable price range sliders improve control over position targeting.
  • Execution Volume Metrics visible per position to help evaluate impact.

Tournament Interface Improvements:

  • Clearer language around reward eligibility.
  • Liquidity buttons added to gauge results to simplify LP onboarding.
  • Tooltip and countdown fixes improve clarity for voting deadlines.

Leaderboard Clarifications:

  • Leaderboards show anonymous “tournament addresses”—these are not linkable to wallet identities, maintaining default privacy.
  • Users can opt in or out of having voting streaks publicly displayed.
  • Reward histories and voting streaks remain private unless users choose otherwise.

3. Ongoing Development & Upcoming Features

Penumbra Labs is pushing beyond bug fixes into proactive improvements:

  • Ledger support for CLI is nearly finalized, with Prax wallet integration coming soon.
  • UI tweaks and clarifications continue, driven by real-time community usage.
  • A mysterious product update was teased but withheld—pending public confirmation.

4. Community Contributions & Feedback

Radiant Commons emphasized the instrumental role of validators, testers, and Discord contributors in shaping the product:

  • Validators are creating guides, memes, and engaged in Telegram strategy groups to increase engagement.
  • Penumbra Labs team are iterating quickly based on Discord, Telegram, and Twitter feedback.
  • The LQT now acts as an entry point for new users, reinforcing Penumbra’s “privacy-by-default” ethos without sacrificing usability.

Final Thoughts: Penumbra’s Engine Is Running

With rising trade volume, engaged community governance, and privacy-preserving infrastructure, Penumbra is maturing rapidly. The Liquidity Tournament is no longer just a pilot, it’s becoming the protocol’s incentive engine, rewarding thoughtful participation and deepening market utility.

Community members are encouraged to:

Follow Discord LQT updates for deeper involvement.