These two proposals aim to increase the flexibility of the USDT alloyed asset by increasing the caps of variants while the alloy has relatively low liquidity. Static caps should be loose while an alloy develops and grow tighter or be supplemented by change limiters when an alloy is fully liquid and less prone to legitimate significant changes in composition.
USDT.axl and USDT.kava remain at 75%, as the market establishes a preferred USDT
Proposals will be submitted individually to allow governance to decide on increasing the exposure to each bridge individually - the majority of text below is therefore repeated.
Alloyed USDT: Increase USDT.inj static limit to 75%
This proposal requests expanding USDT.inj from the current static rate limit of 40% to 75%, as it has been consistently at the cap recently, indicating a market desire to move into Osmosis via this route.
Increasing the static limit according to demand allows the USDT alloy room to expand controllably into the most popular variants while minimizing any potential impact of a security issue with the less popular variants.
For a full description of Alloyed Assets, see the Blog Post
Alloyed USDT
Alloyed USDT was recognized as the canonical USDT on Osmosis in Proposal 792.
It currently has around 2.3 million in supply on Osmosis, and consists of:
- USDT.axl (Axelar bridge from Ethereum) (75% Cap)
- USDT.kava (IBC from Kava EVM) (75% Cap)
- USDT.wh (Wormhole bridged from Ethereum) (40% Cap)
- USDT.pica (Picasso bridged from Solana) (40% Cap)
- USDT.inj (Injective Bridge from Ethereum) (40% Cap)
- USDT.rt (Router Bridge) (20% Cap)
- USDT.e.op.axl (Axelar bridge from Ethereum, via Optimism bridge) (20% Cap)
- USDT.e.arb.axl (Axelar bridge from Ethereum, via Arbitrum bridge) (20% Cap)
- USDT.e.matic.axl (Axelar bridge from Ethereum, via Polygon bridge) (20% Cap)
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: 6th January 2025
Alloyed USDT: Increase USDT.eth.wh static limit to 75%
This proposal requests expanding USDT.eth.wh from the current static rate limit of 40% to 75%, as it has been consistently at the cap recently, indicating a market desire to move into Osmosis via this route.
Increasing the static limit according to demand allows the USDT alloy room to expand controllably into the most popular variants while minimizing any potential impact of a security issue with the less popular variants.
For a full description of Alloyed Assets, see the Blog Post
Alloyed USDT
Alloyed USDT was recognized as the canonical USDT on Osmosis in Proposal 792.
It currently has around 2.3 million in supply on Osmosis, and consists of:
- USDT.axl (Axelar bridge from Ethereum) (75% Cap)
- USDT.kava (IBC from Kava EVM) (75% Cap)
- USDT.wh (Wormhole bridged from Ethereum) (40% Cap)
- USDT.pica (Picasso bridged from Solana) (40% Cap)
- USDT.inj (Injective Bridge from Ethereum) (40% Cap)
- USDT.rt (Router Bridge) (20% Cap)
- USDT.e.op.axl (Axelar bridge from Ethereum, via Optimism bridge) (20% Cap)
- USDT.e.arb.axl (Axelar bridge from Ethereum, via Arbitrum bridge) (20% Cap)
- USDT.e.matic.axl (Axelar bridge from Ethereum, via Polygon bridge) (20% Cap)
About Wormhole
Wormhole was recognized as a canonical bridge for Osmosis in Proposal 582 and caters for around 91M USD in volume per day across a wide variety of blockchain ecosystems.
Target Onchain Date: 6th January 2025