Osmosis Updates From The Lab

Lava Network | Notifi | July 12, 2023

Hosts: Aaron Kong | Sunny Aggarwal (Osmosis)
Guests: KagemniKarimu , Ethan (Lava Network) | Paul Kim (Notifi)

TL;DR

• Concentrated Liquidity (CL) will go live with the chain V16 upgrade, starting with the Osmo/Dai pool. CL allows for migration of existing positions to full-range positions and removes the need for bonding.
• The rollout of CL will be a staged process, starting with a single pool and gradually adding more.
• Osmosis plans to introduce more CLpools, including stablecoin-dominated pairs like Atom/USDT or USDC, passed by governance.
• Quasar, Astroport, Apollo and other projects are developing automated vault management systems for concentrated liquidity positions, allowing for tighter ranges and continuous monitoring.
• Levana is set to launch this weekend, and DaoDao multisig tool has a governance proposal to deploy on Osmosis. DaoDao enables migration of multisig processes on-chain for community Daos like OGP and OSL.
• Osmosis has introduced a new Governance forum at forum.osmosis.zone, transitioning away from Commonwealth for improved performance.
• Lava is an open-source solution for accessing decentralized public APIs and RPC, offering a gateway and SDK. Lava supports multiple chains, including Cosmos, and aims to become the leading RPC protocol for Cosmos and Osmosis. Visit Lava docs to explore its capabilities.
• Notifi provides notifications and messaging services for web3 projects/protocols, supporting multiple chains. Soon to be integrated with Osmosis Appstore to offer transaction alerts, liquidations, CL range alerts and more.
• Osmocon is an upcoming event scheduled for July 21st in Paris.

Aaron
Hello everyone. Sunny, bring us the updates from the lab and we will also have Lava and Notifi speaking.

Sunny
Concentrated liquidity (CL) goes live tomorrow with the chain V16 upgrade. It’s a beta launch starting with the Osmo/Dai pool. Existing positions can be migrated to CL, turning into full-range positions. Bonding is no longer applicable in CL. To concentrate your position, remove/cancel it and create a new one with a concentrated range. If you are superfluid staked, you can still migrate your position, but to concentrate it, you’ll need to go through a two-week unbonding period before creating a new position with the contracted range. Currently, only full-range positions can be superfluided, but more concentrated positions will be supported in the future.

Aaron
How is the technical lift to change that from full-range positions on the superfluid staking?

Sunny
Superfluid staking focuses on risk parameterization rather than technical lift. Concentrated liquidity carries the risk of a significant drop in Osmo amounts within a short period compared to regular LP shares. With concentrated positions, the entire Osmo amount can swiftly convert to another token, leaving no Osmo to secure it. However, as we move towards Mesh security, concentrated positions can be utilized, regardless of whether it’s Osmo or Atom, as long as staked Atom helps secure Osmosis. This implies that the integration of more concentrated positions in superfluid staking may align with the implementation of Mesh security.

Sunny
We’ll start with the Osmo/Dai pool and consider adding more pools based on governance decisions. An informal Twitter poll showed the Atom/Usdt pool as a popular choice. Currently, there are no Atom/stablecoin pools available, making it an attractive pair to introduce. This presents an opportunity to incorporate Tether, which recently launched on the Cosmos network, providing stablecoin diversification. The long-term vision is to have CL pools paired with stablecoins like USDC and Tether, shifting from Osmo-centric pairs to stablecoin-dominated pairs.

Aaron
What would the timeline for every single token that’s integrated with Osmosis, moves over to a stable pair?

Sunny
Once permissionless pool creation for concentrated liquidity is live, it is expected that users will quickly create pools pairing with various stablecoins like USDC and Tether, leading to a gradual shift in trading volume. The Quasar team aims to launch a vault within the next week, simplifying position management for users. LPs can leverage the Quasar vault and allow them to handle active strategy management on behalf of all LPs.

Aaron
How’s the competition looking for quasar?

Sunny
Multiple teams, such as Quasar, Apollo, Astro Port, Elixir, and Sommelier, are actively developing various vault systems for Concentrated liquidity. So there will soon be a wide range of options available for users seeking Concentrated liquidity vaults.

Sunny
The rollout of the new Concentrated liquidity pool will be a slow and staged process, starting with a single pool initially. This phase will run for at least a week or two, ensuring stability and then we’ll add more pools after Osmocon. It’s expected that there may be bugs discovered during this period, primarily on the frontend rather than critical pool draining issues. The focus in the upcoming weeks will be on bug fixing and ensuring a smooth experience on the mainnet.

Sunny
Other updates- Levana is set to launch this weekend, and DaoDao has a governance proposal to deploy on Osmosis. DaoDao is considered one of the best multisig tools in the Cosmos ecosystem, enabling migration of multisig processes on-chain, including community subdaos like OGP and OSL. Osmosis has introduced a new Governance Forum at forum.osmosis.zone, transitioning away from Commonwealth for improved performance.

Aaron
Awesome. Thank you for sharing. We should hop over to Lava.

KagemniKarimu
Greetings! I’m Lava dev rel engineer. Lava is an open-source community-driven solution for accessing decentralized public APIs and RPC. It offers a gateway and has recently launched its SDK publicly. The SDK is in an alpha stage and is guided by the community’s input. RPCs are widely-used in web3 apps, can sometimes be unreliable and lack privacy verification. Lava addresses this by connecting developers, consumers, and apps with multiple providers, ensuring a more reliable, private, and accurate user experience. The Lava SDK, implemented in TypeScript and JavaScript, facilitates direct peer-to-peer communication between developers and RPC providers on Lava.

KagemniKarimu
Web3 builders require a user-friendly interface to access reliable multi-chain RPC. Lava offers various solutions, and the lava SDK stands out as an exciting option. With the rise of cross-chain apps and dynamic RPC acquisition, Lava simplifies the process. The SDK fetches a pairing list from the Lava blockchain and establishes connections with providers via RPC, requiring minimal code from developers. Whether on the front end or back end, a simple send relay function is all that’s needed. To explore further, visit docs.lavanet.xyz. Just want to say that we do support Osmosis.

Aaron
So with that know, who else do you support?

KagemniKarimu
I think over 20, like Evmos, Avalanche, Celo, Sui, Juno, Cosmos-hub, Polygon, Ethereum, Filecoin etc.

Aaron
Who are your biggest competitors on the service that you provide?

Ethan
I guess you’re asking about companies or other projects that provide RPC. Developers often run their own nodes or use public RPC on various chains. Lava doesn’t necessarily view them as competitors but rather as alternative or competitive solutions that developers have adopted to address their RPC needs. Providers like Alchemy, Infura, Anchor, and QuickNode can be seen as competitors, but they can also be potential partners for Lava. Lava aggregates these different providers on its protocol and connects applications to them, creating a valuable ecosystem.

Aaron
So you’re also an aggregator?

Ethan
Applications and providers join the Lava protocol, and users make relays that are routed to multiple providers simultaneously. So we aggregate providers in that sense.

Aaron
Has this already been put in motion, that these should all be working with lava regardless?

Ethan
We are currently in discussions with major providers and have recently announced our first partner, InfStones, known for providing public RPC on platforms like BNB. We are also exploring partnerships with other providers. We welcome node runners of all sizes to join the Lava protocol, not just major providers.

Aaron
Awesome. How do you envision the next three to nine months playing out for Lava?

Ethan
Our primary focus in the next three to nine months is the mainnet launch, particularly on supporting the Cosmos ecosystem. We aim to address the lack of reliable RPC providers in the Cosmos space and become the leading RPC protocol for Cosmos and related chains like Osmosis. Additionally, we aim to cater to the RPC needs of other ecosystems, such as Avalanche. Our goal is to establish a decentralized, resilient, and scalable RPC infrastructure for these ecosystems.

Aaron
Do you see any competition in the cosmos? Or do you think it’ll be just pretty much default to you?

Ethan
We believe our solution is highly beneficial for developers on Cosmos. While there are other providers like Coinbase and Blockdaemon, the involvement of centralized providers such as Alchemy and Infura has been limited. Our aim is to ensure that our solution stands out and effectively supports developers on Cosmos.

Aaron
Okay. How will the value prop of the token work?

Ethan
Tokens and the mainnet are part of an incentive program for Node runners, approved by Dao independently from Lava. Lava is a global marketplace connecting applications to node runners. We’re developing an on-chain subscription service for applications to purchase compute plans tailored to locations and chains. Subscriptions are distributed based on service quality and volume. Lava’s token captures network growth value, driven by increased demand for RPC and APIs. Tokens pay node runners in subscription plans, enhancing token value within the ecosystem.

Aaron
Thank you for the explanation. Could you touch on how governance will be on the lava?

Ethan
Lava is a fully decentralized Dao owned by the community. Government proposals are being discussed, such as determining new protocol specifications. The activity on bd.lavanet.xyz shows validators voting for new chains and networks to be added. Protocol changes may involve adjusting subscription plans and compensating providers and node runners. The Dao plays a significant role in tokenomics and the supported chains and networks. So these are the areas where we believe the Dao can contribute a lot

Aaron
Is governance going to be like a signaling thing, where anything that happens on governance signals to your foundation, act on those other chains? Or will this be some decentralized manner?

Ethan
It doesn’t matter, what chain spec is proposed on chain, the Dao can vote to support it. It shouldn’t impact the actual technical implementation of new chains beyond the cosmos ecosystem.

Aaron
Awesome. Do you have anything more to add?

KagemniKarimu
The lava SDK is highly recommended for developers experienced in web3. Visit docs.lavenet.xyz to explore its capabilities for both front and backend development. The testnet release invites builders to provide feedback and improve the platform. Community support and input are valued, and projects powered by the SDK will be spotlighted. Join the discord for further engagement and exciting developments with osmosis.

Aaron
Awesome. How are users going to find your socials?

KagemniKarimu
The easiest place is our website. You can see our light paper, or socials or docs, everything is there.

Aaron
Thank you. Notifi, please open those mics.

Paul Kim
I’m Paul Kim, CEO and co-founder of Notifi. With a background in web2 and experience at AWS, my co-founder and I recognized the need for enhanced communication services in web3. We built Notifi to bridge the gap between web three projects/protocols and their users through notifications and messaging. We offer alerts for announcements, product updates, trade alerts, liquidation notifications, Concentrated liquidity range alerts and more. Our platform supports multiple chains, including Solana, Terra, EVM, and Cosmos, powering over 40 dApps across 16 chains.

Aaron
Gotcha. When you were integrated with Terra, were you guys integrated when the collapse was happening?

Paul Kim
Prior to the collapse, we were launching several projects, focusing on Dao proposals, price change alerts, and liquidations. But not a lot of it went to production, and not a lot of users could sign up. So no one really got the alerts because it was just never really working in their application experience.

Aaron
Okay. You have had these testruns already. So coming to Osmosis in the cosmos, seems like it’ll be a pretty streamlined operation?

Paul Kim
We’ve been actually testing currently with Osmosis to launch it this week. Most of it’s already ready to go.

Aaron
What other Cosmos chains are you going to be working with?

Paul Kim
I think the theory of app chains is actually pretty cool. We’re going to support anyone that actually has functional experiences for UI/UX. We are working with providers building more app chains on Cosmos or using Cosmos, whether it be like a Solana VM or Moonbeam on cosmos. So we are we’re partnering with a lot of legacy ecosystems around them.

Aaron
Gotcha. Can these notifications go cross chain?

Paul Kim
Our system focuses on providing native experiences within applications. For example, on Osmosis, users will have a bell icon in the UI, enabling transaction alerts, announcements, price changes, and more. We designed our system this way to cater to users with multiple wallets across various L1 networks like Ethereum, Solana, and Osmosis. Our goal is to optimize and centralize the inbox experience for users, allowing them to manage and observe their interactions across multiple chains.

Aaron
Is that something that’s already been built or planned?

Paul Kim
Yes. Our developer tool, Notifi Hub, connects and manages multiple wallets, providing a web three inbox. It allows users to consolidate messages, manage subscriptions, and set preferences across applications. Updates made in one place reflect changes across integrated dApps. The hub also facilitates the discovery of supported applications, projects, and protocols, offering a centralized view of the ecosystem.

Aaron
What are some of the most interesting ways these other apps have utilized Notifi?

Paul Kim
Range alerts are incredible for managing CL ranges. Customizing pools without constant screen monitoring improves the user experience. Our goal is to empower web3 users to step away and return when needed. Orca, a Solana customer, values notification experiences. Alerting users when their positions go out of range has greatly helped them manage their yield effectively.

Aaron
For the sake of UX, when you’re out of range, and it pops up on your native homepage, will you be able to click that notification and it takes you straight to the page in question? That way, you’re able to immediately pop over there instead of clicking on pools and then finding the pool.

Paul Kim
We have a deep link features. We support a variety of channels for notifications, including email, SMS, phone, voice, Telegram, and Discord. Users can directly access relevant pages based on the channel used. Our roadmap includes facilitating user execution. Notifications prompt actions for staying updated. Streamlining actions saves time and improves the user experience, especially for range alerts.

Aaron
Gotcha. Can these alerts be right click on read so that they can be saved for later?

Paul Kim
Currently, we do not have a specific feature for saving notifications. However, there are alternative options available. Many users prefer email, so you can save the email or bookmark the text or Telegram message for future reference. Additionally, we are actively working on incorporating a save feature within our channels. This way, users can easily save notifications for later review or action.

Aaron
Gotcha. On the osmosis side, can you describe how the initial rollout will look?

Paul Kim
We’re excited about our integration with Osmosis during Osmocon, offering a seamless native experience within the DApp. Our platform powers transaction alerts, staking rewards, liquidations, and range alerts. By empowering DApps to directly communicate with users in real-time, we eliminate the need for relying solely on platforms like Twitter and Discord. Messages can be promptly observed and addressed, enhancing the overall user experience.

Aaron
Gotcha. Thank you.

Sunny
The Osmosis app store aims to provide a more integrated experience for the apps built on the Osmosis ecosystem. This includes features like wallet connectors and notifications. Initially, we focus on notifications related to the Osmosis chain and DEX. However, the vision is to enable users to receive notifications from other apps within the Osmosis ecosystem. Whether it’s receiving alerts about positions close to liquidation on Mars or notifications about completed DCA transactions on platforms like Calc Finance, the Osmosis website will serve as a central notification hub for the entire ecosystem.

Aaron
Let’s say, Mars or Levana, is adding a new asset for lending or leverage, how would the technical flow be for them to get that notification out to users?

Paul Kim
Osmosis serves as the central hub for user experience and discovery. Notifications, alerts, and user experiences are centralized within Osmosis, creating a seamless and accessible ecosystem. Through our SDK, we enable monitoring and observability, persisting the history of notifications and alerts directly within the Osmosis front end. This approach ensures that the community and individual users can easily discover and access the information they need within the Osmosis app.

Aaron
Awesome. What about mobile? How is the experience going to be there?

Paul Kim
We offer support for push notifications on iOS and Android devices. To enable push notifications in our new product called Streaming, users can provide the API key or key required for secure delivery of alerts. Streaming acts as a stream of events or alerts that can be consumed, allowing for the triggering of push notifications in a secure manner.

Paul Kim
In today’s mobile-centric world, email, SMS/text alerts, and popular messaging apps are more effective than app alerts. Text alerts have a visibility rate of 80–90% within minutes. We suggest using these channels to reach users efficiently. Mobile push alerts can complement these channels. Leveraging multiple channels is advantageous for critical events. Our approach is to provide various channels and encourage users to sign up for multiple options for comprehensive coverage.

Aaron
Awesome. That’s a very good recap of Notifi. Any questions from listeners?

Joe
I just wanted to know, what’s the advantage of using something like Quasar to participate with concentrated liquidity rather than directly with osmosis?

Sunny
When manually managing contract liquidity, you need to set the range yourself and adjust it if it goes out of range. For example on Osmo, you set your range from 25 cents to 75 cents, which is good. But then it goes out of that range, you have to manually set it again yourself. However, using a solution like Quasar, enables automated management, where they can actively adjust your position by adding or removing liquidity based on the current range. This active management allows for tighter ranges and continuous monitoring without the need for constant manual checks.

Joe
Okay. So this passive investment in pools that we’ve been doing on Osmosis really isn’t going to be a thing if we move more into concentrated liquidity?

Sunny
Yeah, the idea is that the people who want to be more passive are probably going to go into these vaults like Quasar and Astroport, where you just deposit into their vaults and they use some strategy for placing concentrated liquidity positions.

Aaron
Awesome. Thank you Sunny. Thanks to the Lava team and Notifi team for joining today. See you all at Osmocon. July 21, 9am breakfast. Take care.