Osmosis Governance Corner — August 03, 2023
This is the Osmosis Governance Corner, featuring the Osmosis governance proposals that are on-chain for voting this week. Governance proposals are topics where the opinion from the community is requested. Not sure what a governance proposal means or how to vote on it? Read below for a brief summary, and arguments for and against passage of the proposal.
By voting, you have influence on the outcome of the proposal and the direction Osmosis takes. It is important that Osmosis users vote to ensure the voice of the community is heard.
Osmosis allows everyone to voice their thoughts. You can vote on Osmosis governance proposals using various platforms. Scroll to the bottom to find links to them. Participate in ongoing governance discussions at gov.osmosis.zone. Join the discussion and take control of your vote!
Last Weeks Proposals
In this section you will find information about:
- Proposals which have been described in the previous governance corner update. Only the outcome of the proposal will be listed.
- Proposals which have not been discussed in the update that may have been put on chain and passed between governance corner articles. For the second category a small summary of the proposal will be given, along with the outcome of the voting.
Discussed in Previous Governance Corner:
567 — Disposition of ProtoRev Collected Revenues >> Rejected
568 — Create Supercharged Pools for CRO, MATIC and BNB >> Rejected
Proposals passed or rejected since Previous Governance Corner:
569 — Signaling Proposal for WHALE/OSMO into Regular Incentive Program on Osmosis >> Rejected
Proposal 569 went on chain on 27–07–2023 and was rejected on 01–08–2023. This proposal requested the inclusion of the OSMO/WHALE pool (#960) in the Osmosis liquidity incentives program. Upon passing, the pool will move from the incentive matching program to the regular incentive program. WHALE is the native gas asset of Migaloo and a utility token in the White Whale dApp. Migaloo is a permissionless blockchain built with the Cosmos SDK, and the White Whale Protocol is the first live Interchain Liquidity Protocol in the Cosmos Ecosystem.
Proposals on chain
In this part of our governance corner update you can find a short description of the proposals which can be currently be found on chain. Read more to find out what the proposal is about and some arguments for and against passage of the proposal. These arguments are not made up on the spot, but retrieved from the conversations on Commonwealth /Discourse or abstracted from the reasoning validators post on validator.keplr.app. This should help you form an opinion on the proposal, and don’t forget to vote!
Proposal 570— Allow Bonded Positions to convert to Staked Positions
Since the inception of Osmosis it has been possible to lock your funds in a Liquidity Pool to earn LP-rewards. With the start of Supercharged Liquidity this belongs to the past. You already earn based on your position and bonding is only required when entering a full-range position in combination with SFS to have the same requirements as natively staked OSMO. To migrate from the classical pools to the new Supercharged Liquidity in combination with SFS a user has to unbond, wait 14 days, swap the non-OSMO assets to OSMO and then stake the OSMO. This proposal seeks approval for the creation of a feature which would users to switch without the need for unbonding; enabling them to convert their current SFS-enabled position (consisting of at least 2 assets) in a liquidity pool to a staking position at a chosen validator with purely OSMO.
Arguments in favor of this proposal
- Users who wish to migrate from their SFS-enabled position in a liquidity pool to a staking position can do so without any interruption. This will give users the possibility to mitigate impermanent loss by converting into a staked OSMO position benefitting the security of the Osmosis chain.
Arguments against this proposal
- It is unknown how many users will use this feature. It is therefore not sure if the effort put in to develop this feature is effective.
Proposal 571 — Signalling Proposal for Supercharged Pools Creation
This proposal seeks approval for the creation of a list of Supercharged pools during the upgrade of the Osmosis chain to v17 (date to be announced). Only pools with less than 18 decimals are included (thus excluding assets like ETH, BNB, EVMOS). A full list can be found here. Furthermore a migration link for users to migrate their liquidity to the new pools will be created, SFS will be enabled (as long as it is also enabled on the current classic style pool) and per pool 10 OSMO will be used from the community pool to set the initial liquidity with the correct price during creation of the pool. This process has already been following with the creation of the first Supercharged Liquidity pool OSMO/DAI (#1066) approved in prop #532. This proposal is asking for the whole list of pools at once to relieve the burden on governance, since in the current form the creation of the pool and the creation of the migration link are only created after governance approval.
Arguments in favor of this proposal
- Since creating Supercharged Liquidity pools are currently authorized through governance this proposal to create a set of the new pools during the next upgrade is a good method to relieve pressure on Osmosis governance.
- Migrating these classic pools to a concentrated liquidity pool benefits Osmosis by improving liquidity efficiency & reducing slippage for users and thereby improving UX. Pools included in this proposal are safe to migrate and omitted pools will be migrated later, after a software upgrade.
Arguments against this proposal
- None mentioned on Commonwealth / Discourse or validator.keplr.app.
Proposal 572 — Signaling Proposal: Matching External QSR incentives to QSR/OSMO pool #1060 on Osmosis AMM
This is a signaling proposal to match the externally provided incentives on the QSR/OSMO pool (#1060) with OSMO incentives for a duration of 90 days. The proposal for the incentives in QSR already passed on the Quasar chain. Upon passing, the pool will be included in the external incentive matching program. QSR is the native gas asset of the Quasar blockchain. Quasar is building the primary asset management hub of the Cosmos ecosystem, representing the gateway to IBC-enabled yield opportunities. They are a global team passionate about improving the Cosmos UX by making the use of the Cosmos technology as easy as it can be; for example with their app to provide liquidity in multiple LPs on Osmosis with just 2 clicks.
Arguments in favor of this proposal
- With Quasar’s use of Osmosis liquidity and imminent deployment of vaults the success of Quasar is also of added value for Osmosis.
- Matching external incentives to new tokens finding liquidity on Osmosis continues to position osmosis as the go to exchange for new tokens bootstrapping in the ecosystem. This positioning from Osmosis is of great benefit to the network.
Arguments against this proposal
- The matching policy on Osmosis is not correct. The matching should only be a fraction of the supplied external incentives and an upper limit of the amount of OSMO incentives should be in place.
Proposal 574 — Recognising USDT Canonical status for Osmosis
A long time ago in a combination of prop #205 and prop #206 Axelar was chosen as the canonical bridge provider for Ethereum based assets. With the deployment of native USDT on Kava it is time to change this for USDT. This proposal seeks approval for making the Kava-issued native USDT the canonical asset on Osmosis. This means that:
- all other forms of USDT will become xxx.USDT (like axl.USDT, grv.USDT, etc)
- Osmosis incentives will prioritize pools with the canonical USDT over pools with other forms of USDT. This will for now not affect pool #831 (after passing of this proposal axl.USDT/OSMO, but it might be relevant to migrate incentives in the future once Supercharged Liquidity pools are deployed)
Arguments in favor of this proposal
- USDT is around for a long time and it the major stablecoin in the crypto-markets.
- Even though people might not be a huge fan of USDT; using a native resource as opposed to bridged resources as the canonical version of something always increases user security. This is the safest route of action for all users.
Arguments against this proposal
- None mentioned on Commonwealth / Discourse or validator.keplr.app.
Proposal 575 — Enable the Creation of USDT Supercharged Pools
Just like done in proposal #532 and proposal #571 (included earlier in this governance update) this proposal asks for the approval of the creation of USDT pools with Supercharged liquidity in addition to OSMO, ATOM, USDC, and DAI. Tether is the first issued stablecoin in 2014 and still is the biggest stablecoin around.
Arguments in favor of this proposal
- USDT is the biggest stablecoin around. Making this a quote asset and improving the possibilities and trading experience for this asset is of great importance in the growth of Osmosis and the UX for users.
Arguments against this proposal
- None mentioned on Commonwealth / Discourse or validator.keplr.app.
Proposal 576 —Add NOM/OSMO (#882) to External Incentive Matching program
This is a signaling proposal to match the externally provided incentives on the NOM/OSMO pool (#882) with OSMO incentives. The Onomy DAO will supply external incentives with 10k NOM over 90 epochs starting 13–08–2023 at 15:00 (so at the epoch following that timestamp). Upon passing, the pool will be included in the external incentive matching program. NOM is the native gas asset of the Onomy blockchain. Onomy is a Cosmos-based, vertically-integrated ecosystem designed to converge Forex and decentralized finance. They have deployed a the Arc Bridge Hub (a bridging solution integrating the IBC and many EVM chains) and plans to deploy The Onomy Exchange and the Onomy Reserve.
Arguments in favor of this proposal
- (Putting the looming issue with the NOM ticker aside) there is not much against matching the incentives like we have done on many other projects.
Arguments against this proposal
- The ticker NOM is perceived to be claimed by Nomic (which is not tradeable yet) during their initiation of the chain, while the ticker NOM is first claimed by Onomy on Osmosis when they opened their pool. Validators indicate that they wish to see this issue solved.
Proposal 577 — Signaling Proposal for WHALE/OSMO External Incentive Match Extension
This is a signaling proposal to extend the inclusion of the OSMO/WHALE pool (#960) in the Osmosis liquidity incentives program. Upon passing, the pool will continue to receive incentives as part of the incentive matching program. WHALE is the native gas asset of Migaloo and a utility token in the White Whale dApp. Migaloo is a permissionless blockchain built with the Cosmos SDK, and the White Whale Protocol is the first live Interchain Liquidity Protocol in the Cosmos Ecosystem.
Arguments in favor of this proposal
- None (new) mentioned on Commonwealth / Discourse or validator.keplr.app.
Arguments against this proposal
- This proposal follows closely on the rejected proposal #569, which was rejected due to the recent loss of funds. Too many question marks still surround this which are left unanswered at this point in time.
Interesting proposals on Commonwealth
This part of the governance corner update will always contain a maximum of 2 Commonwealth threads which are highly interesting to visit. The threads highlighted here will have a major impact on Osmosis on the long term, so participating in these conversations will allow you to contribute to the future of the project.
Thread — Signaling Proposal to Update the Incentives Program
Hathor Nodes is leading the development of a new structure for the incentives program which is based on an algorithm which determines how much liquidity is needed to offer the user a low-slippage experience of Osmosis as a DEX, while still guarding the risk of over-incentivization. This is a thin balance and work has been done on the background for the past few months, but now it is time to see the outcome. There is way too much information included to put it all in here, so check out the link to Discourse, read all the content and let us know your thoughts!
How to vote?
You can vote using various platforms for Osmosis. Simply log in with your wallet (you might need to import your wallet first) and choose Yes / No / NoWithVeto / Abstain on the vote following your own beliefs using the information provided in these blogs. Your own vote always overwrites the vote done by the validator you delegated to, but only for the voting power your address represents.
The following platforms can be used:
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