Approve allASI as Migration Mechanic

Description

This proposal recognizes allASI as the canonical version of ASI on Osmosis as a mechanism to smooth the migration of FET to ASI for users as well as removing rate limits on FET to allow full migration to occur.

The Fetch to ASI merge

Fetch.ai (FET) is merging with two other AI sector projects, SingularityNET (AGIX) and Ocean Protocol - OCEAN, to form a new project, Artificial Superintelligence (ASI).

The merger was approved by the Fetch Community in Fetch.ai Proposal 26.

The merge will be triggered by the renaming of the current Fetch.ai chain from fet-1 to asi-1 and the FET token on that chain to ASI.

Due to the nature of this chain upgrade, all existing IBC transfer links between Fetch.ai/Artificial Superintelligence and the wider Cosmos will need to be renewed.

When channels are re-established after the merge, the token known as FET on Osmosis will be transferable to the new chain for redemption through the SingularityDAO’s website.

As a decentralized exchange, Osmosis cannot automatically exchange a user’s FET for ASI, as each user owns their tokens.

Token Migration via allASI

To simplify the migration process for users, a new Alloyed Asset, allASI, will be created, which has two significant benefits:

Redemption Contract on Osmosis

Alloyed assets utilize a Transmuter pool, which enables 1:1 redemption of one asset for another. Holders of FET on Osmosis can exchange 1 FET for 1 allASI (or 1 ASI for withdrawal) in perpetuity.

Any participant in the alloy can then perform the transfer and redemption mechanism of the underlying FET within the Alloy to return the proportion of ASI within the alloy to 100% through bulk redemption movements.

This mechanism enables all holders to convert FET to ASI more easily as part of the swap and withdrawal process, simplifying the migration process for most Osmosis users.

Enable Supercharged pairings of ASI/USDC

While a Cosmos-based token, FET has seen relatively low trading on Osmosis until recently due to its accuracy of 18 exponents.

Due to limitations in the Supercharged pool model, 18-exponent tokens cannot be paired with Cosmos standard 6-exponent tokens such as USDC, USDT, or OSMO if the ratio of these is below 1:1.

This enabled trading of FET on Osmosis in Supercharged around four months ago when the price rose above 1 USDC.

Alloyed assets such as allASI can reduce the exponent of 18 exponent tokens to 12, enabling Supercharged trading to be more independent of the price ratio between assets by moving the range of exponents in use towards the Cosmos standard.

Specification of allASI

Denomination: allASI

Description: Alloyed ASI

Symbol: allASI

Assets: FET, ASI

Normalization Factors: 1(1000000,1000000)

Static Rate Limits: None

Change Rate Limits: None

Administrator: Osmosis Governance (osmo10d07y265gmmuvt4z0w9aw880jnsr700jjeq4qp)

Moderator: osmo1ugrn8qgsvyr8zwrv8h2g4r8ascngxk7qeaz7e0htjq3znswkh4cqhjdpgy

About Alloyed Assets

Alloyed Assets comprise multiple underlying bridged assets within a tokenized CosmWasm Transmuter pool type and aim to provide a superior cross-chain experience to users while optimizing the capital efficiency of liquidity required for asset composability and minimizing the risk of exposure to a variety of bridges.

By swapping into an alloyed asset, a user receives a representative token of the underlying assets within the pool, which can then be used as a risk-diversified version of the asset that is usable throughout the Osmosis Ecosystem.

This results in a user flow similar to major CEXs, which accept deposits from multiple chains and increase a user’s balance, but with an entirely decentralized, on-chain mechanism.

When a transaction is initiated, IBC hooks are used to transfer the asset along the selected bridging option and automatically join or exit the Transmuter pool.

As this flow will be frontend only, advanced users, or those interacting with frontends that have not integrated the IBC hooks will be able to retain the un-alloyed asset on Osmosis.

From there a swap would route through the Transmuter pool as usual, not stranding these users if they do arrive on Osmosis via a frontend without this full integration.

For a full description of Alloyed Assets, see the Blog Post

Forum Thread: https://forum.osmosis.zone/t/approve-allasi-as-migration-mechanic/2924