This proposal removes the effective static limit on natively issued WBTC within Alloyed BTC, by raising it from 75% to 100%. The limits on all other constituents are unchanged.
Alloyed BTC
Alloyed BTC (allBTC) was recognised as the canonical Bitcoin on Osmosis in Proposal 813. Each constituent carries a static limit that caps its share of the alloy, so that exposure to any one bridge stays bounded.
The alloy holds about 68.07 BTC (6 November 2026):
| Constituent | Amount | Share | Static limit |
|---|---|---|---|
| WBTC (natively issued on Osmosis) | 52.59 BTC | 77.3% | 75% |
| WBTC.eth.axl (Axelar from Ethereum) | 11.45 BTC | 16.8% | 75% |
| cbBTC.axl (Coinbase BTC via Axelar) | 3.98 BTC | 5.8% | 75% |
| WBTC.eth.atom (Ethereum via the Cosmos Hub’s Eureka) | 0.04 BTC | 0.1% | 75% |
Live compositions can be viewed on the Alloyed Asset Dashboard.
Rationale
Native WBTC now makes up 77.3% of the alloy, above its 75% limit. A static limit is enforced whenever a swap raises that asset’s share. Every withdrawal of allBTC into WBTC.eth.axl, cbBTC.axl or WBTC.eth.atom removes one of those assets from the alloy and raises native WBTC’s share, so each one is rejected. Only withdrawals into native WBTC succeed.
The result is that the roughly 15.5 BTC (22.7% of the alloy) held in the bridged variants cannot be withdrawn from allBTC at all. Holders who want to leave through Axelar or Eureka have no direct route, and routers detour through other assets at a higher cost.
The conversion of native WBTC into bridged variants is a time consuming process and has met with delays. Until it completes, the 75% limit only stops users from withdrawing the bridged variants, which is the direction that reduces bridge exposure. Raising native WBTC’s limit to 100% lets those withdrawals go through.
Native WBTC is issued on Osmosis directly, which is why it was originally listed with a 100% cap (see Proposal 899). Proposal 963 registered a 45% limit to cap total WBTC exposure and make room for BTC representations that connect directly to Bitcoin (nBTC, ckBTC). That cut routing through the alloy, so Proposal 966 raised the limit to 50%, and Proposal 1006 raised it to 75%. Those direct-to-Bitcoin representations are no longer in the alloy, and every remaining constituent is a form of WBTC or cbBTC, so the limit no longer serves its original purpose.
The backing of WBTC can be seen on the WBTC Transparency site.
The bridged variants keep their 75% limits, so deposits through any single bridge remain bounded as before.
The contract does not allow an asset’s only limiter to be deregistered, so the limit is raised to 100% rather than removed.
Proposed change
| Constituent | Current limit | Proposed limit |
|---|---|---|
| WBTC (native) | 75% | 100% |
| WBTC.eth.axl | 75% | 75% (unchanged) |
| cbBTC.axl | 75% | 75% (unchanged) |
| WBTC.eth.atom | 75% | 75% (unchanged) |
This proposal updates a single limiter parameter. It involves no contract migration or code change and can be reversed by a later governance proposal.
References
- Alloy dashboard: https://alloyed.osmosis.zone/
- Previous WBTC limit changes: Proposal 963 (registered at 45%), Proposal 966 (50%), Proposal 1006 (75%)
- allBTC transmuter contract: osmo1z6r6qdknhgsc0zeracktgpcxf43j6sekq07nw8sxduc9lg0qjjlqfu25e3
Target Onchain Date: As this is directly impacting users and trading activity, this will go onchain today, 6th November 2026, similarly to the partial reversion of the WBTC cap in Proposal 966