Osmosis Volume 28

May 15, 2022

Welcome back, Osmonauts 🧑‍🚀 Today’s Osmosis update covers Props 222 to 226 following the Terra blockchain halt, as well as the latest Updates from the Lab, Zone, and OGP. The team’s recent area of focus: Capital Efficiency.

Because of Terra’s blockchain halt and subsequent IBC deactivation, $UST could no longer be sent to Osmosis as of May 13. Props 222 through 225 have since passed in favor of reallocating half of all incentives on OSMO/UST, OSMO/LUNA and LUNA/UST to the respective USDC, ETH, and DAI pools. Prop 226 has also passed and is under way to implement emergency unbonding of $UST pools.


Thanks to @RoboMcGobo on Twitter, a non-technical write up explaining the functions behind Props 222-226 is available on Reddit. The post debriefs the emergency hard-fork upgrade, depooling $UST liquidity, reallocating incentives to alternative stablecoin pools, and the implementation of these upgrades.

For further proposal information, read his post on Reddit using the link below ⬇️

The Recap for May 4th’s Updates from the Lab reviews the latest news on Osmosis tooling and bridge apps before diving into a stablecoin discussion on Capital Efficiency.

One major project that has been under development is Telescope, a tool that would enable a simple Osmosis plug-in for front-end use on other apps. As for bridge updates, as Axelar pools are being migrated to Osmosis, users will still be sent to Satellite for bridge transactions until Osmosis’ native-UI integration goes live in the upcoming weeks. The AMM’s v8 upgrade is scheduled to go live on May 18th, which will include:

  • Stableswap
  • AMM Refactor
  • Multi-Hop Discounts
  • Custom CosmWasm Bindings
  • Reduced Fees on ATOM/OSMO Pool (to 0.2%)
  • CosmWasm Token Factory

The Lab discusses various ways that Osmosis could reduce incentive fragmentation and maximize stablecoin deposits through Isotonic lending and StableSwap liquidity pools. Sunny proposes 3 main options for risk mitigation:

  1. Reallocate inactive stablecoin deposits into StableSwap LPs
  2. Turn Stableswap LP shares into Osmosis dollars ($OSD)
  3. Create Osmosis Dollars by using Isotonic CDP positions

Full recap linked in OSL’s Tweet: 👇

The Osmosis Grants Program recently published a vision statement sharing the background and purpose of the OGP. Designed to serve the expansion of Osmosis from a single-app chain to a robust Layer 1 ecosystem, the program seeks to fund developers of  applications, core infrastructure, analytics & tooling, and other projects that can add further utility to Osmosis and the greater Cosmos.

To read the full statement and find out more about program funding, click their link below ⤵️

Highlights from Osmosis’ most recent Zone Update include:

New Listings

  • GLX - Galaxy
  • HASH - Provenance Utility Token
  • BLOCK - Marble’s DEX Token
  • FET - Fetch.ai
  • MNTL - AssetMantle’s one-stop NFTs
  • RAC - Raccoon’s AI NFTs
  • INJ - Injective Protocol

The $RAW airdrop for Juno LPs on Osmosis, as well as the $MEME and $GLX airdrops for $OSMO stakers, can now all be claimed.

Peep the full blog update for more news on external liquidity incentives 👇

May 11th’s Updates from the Lab covers the recent shock of Terra’s $LUNA and $UST tokens, and how it has triggered rapid volatility throughout the Cosmos ecosystem. Sunny goes in-depth on the resulting proposals that have since passed in the pursuit to mitigate loss within Osmosis’ $LUNA and $UST LPs; Given the height and damage of the situation, securing a diverse suite of stablecoins is a main priority for Cosmos now more than ever.

The latest weekly meeting also features Berrey from the OSL, Bit Song, and other community members as they host a comprehensive discussion on Cosmos stablecoin trading and upcoming stableswap features to leverage.

Tune in to the full conversation for all the alpha ⬇️

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