Osmosis Governance Corner — August 10, 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 forum.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:
570 — Allow Bonded Positions to convert to Staked Positions >> Passed
571 — Signalling Proposal for Supercharged Pools Creation >> 571
572 — Signaling Proposal: Matching External QSR incentives to QSR/OSMO pool #1060 on Osmosis AMM >> Passed
574 — Recognising USDT Canonical status for Osmosis >> Passed
575 — Enable the Creation of USDT Supercharged Pools >> Passed
576 — Add NOM/OSMO (#882) to External Incentive Matching program >> Passed
577 — Signaling Proposal for WHALE/OSMO External Incentive Match Extension >> Rejected
Proposals passed or rejected since Previous Governance Corner:
578 — Signaling Proposal for Incentives Program Update >> Passed
Proposal 578 went on chain on 04–08–2023 and was rejected on 09–08–2023.
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 proposal is the first result of that work and asked for the approval of bringing the first version of the new algorithm live for the incentives program. It is already noted that the program will develop over time, for which a small team is put together to oversee that development. If you are curious about the impact on the incentives on the pool, check here.
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 579 — Create USDT Supercharged Pools
In the past governance update prop #575 was shown which enabled the creation of Supercharged Liquidity pools for USDT. This proposal asks approval for the actual creation of 6 pools (USDT against USDC / ATOM / OSMO with different spreads). Tether is the first issued stablecoin in 2014 and still is the biggest stablecoin around and now natively available in the Cosmos ecosystem through Kava.
Arguments in favor of this proposal
- USDT is the biggest stablecoin around. Attracting more liquidity through the perks Osmosis can offer is a good thing for the future.
- Concentrated liquidity for USDT will give traders a better experience when trading due to lower slippage.
Arguments against this proposal
- Concentrated liquidity in USDT is risky considering the current regulatory framework. Upcoming legislative actions might cause depegs. Concentrated liquidity makes it harder to depeg, but due to the nature of the liquidity when the depeg is reality it goes faster due to a lower liquidity outside the concentrated liquidity upper and lower limits.
Proposal 580— Add ETH and WBTC as Quote Assets
Passing proposal #580 adds wBTC and ETH to the list of quote assets which can be used to create Supercharged Liquidity pools. This results in the following:
- the ability to derive that e.g. 1 OSMO is worth 0.000016 wBTC instead of 1 WBTC being worth 62,500 OSMO. The first looks more to the cryptomarket standard. This also applies to ETH.
- Besides the notation it opens the option to start creating pools which might stimulate liquid staked ETH to begin entering the Cosmos.
Arguments in favor of this proposal
- Improving the user experience for users which feels more natural in the cryptoworld is a plus.
- Enabling liquid staked ETH to enter the ecosystem and start earning rewards adds to the possibilities Osmosis has to offer to become the interchain DEX.
Arguments against this proposal
- None mentioned on the forum or on validator.keplr.app.
Proposal 582 — Add Wormhole as a Canonical Bridge Service Provider
Since proposal #206 Axelar has been chosen as canonical bridge provider for ETH and in later proposals for other chains as well. Wormhole steps in to challenge this position and comes with a proposal to recognize them as canonical Bridge Service Provider (BSP). Wormhole is entering the Cosmos ecosystem with their own chain, called Gateway, and via that route opens the doors to chains like ETH and DOT, but also to new chains like Solana, Near, Algorand, Aptos and Sui.
It will not result in an immediate change, but in the proposal it is included that if an asset bridged via Wormhole has a higher liquidity for 2 weeks in a row, the canonical asset is changed (e.g. the change from whETH to ETH and in parallel the change from ETH to axl.ETH for the Axelar bridged ETH). Applicable incentives for that specific asset will also change to the new canonical pool in that case.
Arguments in favor of this proposal
- Having a second bridge provider integrated is a long standing wish of multiple community members to increase security of the bridged assets and the bridges itself.
- Wormhole has no added fees. This should facilitate a much cheaper bridging experience than Axelar in times of high volume on Ethereum.
Arguments against this proposal
- None mentioned on the forum or validator.keplr.app.
Proposal 583 —Add MsgCreateBalancerPool into Approved ICA Messages list
Qwoyn Studios seeks approval for integrating MsgCreateBalancerPool into the approved ICA (Inter-Chain Account) messages on the Osmosis Mainnet. This integration aims to enable the Qwoyn Aquifer module’s on-chain, which is a decentralized solution to facilitate the creation of liquidity pools and incentivizing community involvement for new projects in the Cosmos ecosystem. This is a different method of performing an IDO-like process and might result in a better development of liquidity than providing incentives to a pool.
Arguments in favor of this proposal
- The module has been tested on the Osmosis mainnet and did not result in unforeseen situations.
- The Aquifer module can be implemented by other projects to attract liquidity on their pool as well.
Arguments against this proposal
- None mentioned on the forum or on validator.keplr.app.
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: Approve the Stride Delegation Process Osmosis Advisory Council
A while ago a request for validators was done to apply for the Stride Delegation program to be included in the set of 36 validators who get a share of the OSMO staked as collateral for stOSMO. At the same time a request was made for individuals to apply for the council who will assess the validator applications and make a recommendation to which validators the delegations will go. This council has now been chosen and is being discussed on the forum.
Thread — Osmosis support grants
The battle for the privilege to serve the community with support has started! In the coming weeks the current period for the support from the OSL will end (ending at the end of August) and Interbloc has created a competing proposal. The OSL has also created a new one. Both threads can be found on the forum. Since live support is crucial for the best user experience this is a very important topic and every input is welcome (and needed)!
Discourse link OSL draft
Discourse link Interbloc draft
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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