Osmosis Proposal: #891

Unwind OSMO paired liquidity pools for lower cap assets

Status:

Passed

Yes97.6%

Turnout:57.16%

Quorum:20.00%

Yes: 97.6%

179,775,206 OSMO

No: 0%

34,452 OSMO

No With Veto: 0%

7,470 OSMO

Abstain: 2.4%

4,361,332 OSMO

Voting Period

Proposer

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Deposit End

Submit Time

Description

This proposal would dissolve protocol-held OSMO paired pools against non-correlated minor assets to support the strategy of OSMO decoupling.

This strategy aims to increase the independence of OSMO as it moves from the previous routing use case to being primarily used for governance and revenue.

Stable tokens such as USDC and USDT and high market cap tokens that trade primarily against stable tokens are the desired pairings to maintain liquidity.

OSMO Liquidity Pairings Impacted

AXL- $570k

Deployed to Astroport in Proposal 756
Initial liquidity of 650k OSMO, 443k AXL
Current liquidity of 612k OSMO, 477k AXL
While performing acceptably in terms of liquidity ratios, this deployment does not facilitate as much volume as originally predicted in the deployment. The non-protocol liquidity Supercharged pool facilitates around 4 times more volume per unit of liquidity, while the classic pool facilitates similar amounts as the Astroport deployment.
Both assets would be withdrawn and returned to the Community Pool as liquid assets.

WHALE- $64k

Initially Deployed by SAIL DAO
Clawed back from SAIL DAO during Proposal 812
Initial Status: 136.3k OSMO, 5M WHALE
Current Status: 68.6k OSMO, 11.12M WHALE
The WHALE removed from this liquidity position will be returned to SAIL as the original source.
The OSMO will be returned to the Community Pool.

WYND- $1.3k

Token Swap from Proposal 420
Initial Status: 21.7k OSMO, 85k WYND
Current Status: 2.9k OSMO, 734k WYND
52,000 OSMO originally with 26k swapped. Now valued at 3k OSMO.
Both assets would be withdrawn and returned to the community pool, as there are no markets for disposing of the WYND side.

Other - $125

These pools were created during the v17 Software Upgrade to enable direct migration from Superfluid Classic pools to Superfluid Supercharged pools.
They consist of a range of assets that would be added to the relevant Alloy if one is available before being returned to the Osmosis community pool.

Implementation

This proposal would send all liquidity receipts to the Osmosis Liquidity subDAO for action as detailed.

Forum Thread: https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412