This set of three proposals would add an array of USDT variants to the USDT alloy, grouped by bridge exposure.
- USDT.rt, from a variety of chains including the 50% of all USDT that is issued on Tron, capped at 5%, using Router Protocol
- USDT.arb.axl from Arbitrum, capped at 20%, using Axelar
- USDT.matic.axl from Polygon, capped at 20%, using Axelar
- USDT.op.axl from Optimism, capped at 20%, using Axelar
- USDT.eth.inj from Ethereum, capped at 20%, using the Injective Peggy bridge
Proposal 1 - Add USDT variants from ETH L2s via Axelar to Alloyed USDT
This proposal would add multiple USDT variants from Ethereum Layer 2s via Axelar constituents of Alloyed USDT with static limits of 20% each, as well as adding static limits to the existing assets within Alloyed USDT.
Alloyed USDT
Alloyed USDT was recognized as the canonical USDT on Osmosis in Proposal 792.
It currently has around 1.8 million in supply on Osmosis, and consists of:
- USDT.axl (Axelar bridge from Ethereum)
- USDT.kava (IBC from Kava EVM)
- USDT.wh (Wormhole bridged from Ethereum)
- USDT.pica (Picasso bridged from Solana)
This proposal requests the addition of multiple USDT variants from Ethereum Layer 2s via Axelar bridge to the USDT Alloy. This brings more direct connections to USDT liquidity on Arbitrum, Polygon and Optimism utilizing the Axelar bridge which has previously been used to connect to Ethereum as an Osmosis Canonical Bridge.
Connecting directly to this liquidity represents around:
Arbitrum: 2.35% of Circulating USDT
Optimism: 0.94% of Circulating USDT
Polygon: 0.8% of Circulating USDT
Source: DefiLlama
This proposal adds these assets with static rate limits of 20% each, as well as adding static rate limits to the assets already included in the USDT Alloy as follows:
- USDT.axl - 75%
- USDT.kava - 75%
- USDT.wh - 20%
- USDT.pica - 20%
- USDT.arb.axl - 20%
- USDT.matic.axl - 20%
- USDT.op.axl - 20%
For a full description of Alloyed Assets, see the Blog Post
Proposal 2 - Add USDT.rt to Alloyed USDT
This proposal would add USDT.rt as a constituent of Alloyed USDT with an introductory static limit of 5%.
Alloyed USDT
Alloyed USDT was recognized as the canonical USDT on Osmosis in Proposal 792.
It currently has around 1.8 million in supply on Osmosis, and consists of:
- USDT.axl (Axelar bridge from Ethereum)
- USDT.kava (IBC from Kava EVM)
- USDT.wh (Wormhole bridged from Ethereum)
- USDT.pica (Picasso bridged from Solana)
This proposal requests the addition of USDT.rt to the existing USDT Alloy, enabling USDT to be deposited via Router Protocol. This connects Osmosis to 25+ chains that are served by Router Protocol.
Connecting directly to this liquidity represents access to 50% of circulating USDT with previously unconnected bridges.
Source: DefiLlama
Router Protocol has had multiple audits, however, as a relatively new bridge, this proposal adds a static rate limit of 5% to minimize risk to Alloyed USDT.
For a full description of Alloyed Assets, see the Blog Post
About Router Protocol
Router Protocol is an extensible multi-directional bridge connecting existing and emerging layer 1 and layer 2 blockchains to allow contract-level data flow across them.
Router Protocol is secured by Router Chain, a Proof of Stake blockchain leveraging Tendermint’s BFT consensus engine. Validators running on the Router Chain can also monitor state changes on other chains. Applications on the Router Chain can write custom logic to trigger events in response to these external state changes. Additionally, applications on the Router Chain can leverage a trustless network of relayers to update states on external chains. Simply put, the Router architecture allows contracts on one chain to interact with contracts on other chains in a secure and decentralized manner.
Proposal 3 - Add USDT.eth.inj to Alloyed USDT
This proposal would add USDT.eth.inj as a constituent of Alloyed USDT with a static limit of 20%.
Alloyed USDT
Alloyed USDT was recognized as the canonical USDT on Osmosis in Proposal 792.
It currently has around 1.8 million in supply on Osmosis, and consists of:
- USDT.axl (Axelar bridge from Ethereum)
- USDT.kava (IBC from Kava EVM)
- USDT.wh (Wormhole bridged from Ethereum)
- USDT.pica (Picasso bridged from Solana)
This proposal requests the addition of USDT.eth.inj as a constituent of Alloyed USDT with a static limit of 20%.
There is approximately 24M of USDT in use on Injective, bridged from Ethereum via the Peggy bridge. As the main stablecoin in use with Injective applications this connection will faciliate the flow of liquidity between Injective and Osmosis.
For a full description of Alloyed Assets, see the Blog Post
About Injective and Peggy
Injective is a lightning-fast, interoperable, layer one blockchain optimized for building premier Web3 financial applications. Injective provides developers with robust plug-and-play modules such as a fully decentralized orderbook, binary options, real-world asset (RWA) module, and more, allowing developers to build a diverse array of sophisticated applications.
The Peggy module enables the Injective Chain to support a trustless, on-chain bidirectional ERC-20 token bridge to Ethereum. In this system, holders of ERC-20 tokens on Ethereum can convert their ERC-20 tokens to Cosmos-native coins on the Injective Chain and vice-versa.
This decentralized bridge is secured and operated by the validators of the Injective Chain.
Target onchain date: 21st August 2024