This post documents a moderator action taken on the Alloyed BTC and Alloyed DOGE contracts.
The moderation subDAO was granted the ability to remove variants from alloys under Proposal 816.
The moderation subDAO is reviewing all alloys to assess the risk vs. benefit of their variants, as several have been active without change for some time and have seen varied levels of usage, while trading within an alloy generates no fees for Osmosis yet carries risk to the protocol.
Alloy Information
Alloyed BTC
Alloyed DOGE
Adjustment Summary
The Moderator subDAO will remove the following Omnity (ChainKey, via Internet Computer) variants from their respective alloys:
- ckBTC - Chain-key Bitcoin bridged from Internet Computer via Omnity, removed from Alloyed BTC
- ckDOGE - Chain-key Dogecoin bridged from Internet Computer via Omnity, removed from Alloyed DOGE
Both variants currently hold a zero balance within their alloys, so the removal has no impact on existing holders.
Following this adjustment, Alloyed BTC will consist of:
- WBTC - Natively issued on Osmosis
- WBTC.eth.axl - Axelar bridge from Ethereum
- WBTC.eth.atom - Eureka bridge from Ethereum
- cbBTC.axl - Coinbase Wrapped BTC via Axelar
- nBTC - Nomic bridge from Bitcoin
Following this adjustment, Alloyed DOGE will consist of:
- DOGE.int3 - Int3face bridge from Dogecoin
Replacement DOGE paths are being sourced to increase diversity pending governance approval.
Rationale
Observed usage of the ckBTC and ckDOGE variants shows minimal demand with no usage even for arbitrage opportunities.
Key considerations:
- No protocol revenue is generated from intra-alloy swaps due to zero swap fees.
- Each additional variant adds operational and bridge risk without corresponding economic upside.
- ckBTC shows minimal direct demand and is not actively traded.
- ckDOGE was never given a user-facing bridge path: Omnity’s transfer interface only ever surfaced ckBTC, leaving no route for organic ckDOGE demand.
- Omnity’s own development focus has moved to Bitcoin Runes infrastructure, away from the chain-key BTC and DOGE routes that back these variants.
Maintaining a broad set of variants therefore exposes Osmosis to asymmetric risk with little benefit.
Outcome
- The BTC and DOGE alloys are narrowed to their more widely supported bridge paths.
- The alloys remain functional while being materially simpler, easier to reason about, and lower risk.