Alloyed Assets on Osmosis: Unifying UX and Solving Liquidity Fragmentation

[sunnya97]

@faddat

Well I certainly hope that alloyed assets will be in addition to as opposed to instead of.

I would hope that users can still access the underlying assets.

Yes, underlying assets will still be usable in pure form.

@zmanian

While the mitigations do provide some buffer against catastrophic failure, I think LPing in an alloyed asset pool make me pretty uncomfortable.

Including for in LP pools. Just as now, you can continue to LP in the OSMO/USDC.axl pool, post canonical ETH becoming the alloy, you will still be able to LP in ETH.axl pools.

@zmanian

I also worry a lot that adding an additional click/signature to common user flows like swap then bridge and introducing complexity where liquidity routers like skip/tfm will have to alloy/unalloy assets in their workflows.

Alloyed asset pools are implemented as cw_pools, meaning that to alloy an asset just requires doing a swap (similar to the existing transmuter pools). For example, going from ETH.axl → ETH is just a swap. As most APIs like Skip API and Squid already support triggering a swap immediately upon bridge deposit without need for an additional tx, from a user perspective this will be abstracted away.

The osmosis.zone frontend dev team is currently doing the same for the Osmosis site, that you will be able to deposit ETH via one of the bridges, and have it automatically alloy the asset using ibc_hooks .