This set of three proposals aims to increase the flexibility of the USDT alloyed asset by increasing the caps of three variants while it 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.
All 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 40%
This proposal requests expanding USDT.inj from the current static rate limit of 20% to 40%, 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 1.7 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) (20% Cap)
- USDT.pica (Picasso bridged from Solana) (20% Cap)
- USDT.inj (Injective Bridge from Ethereum) (20% 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: 28th November 2024
Alloyed USDT: Increase USDT.sol.pica static limit to 40%
This proposal requests expanding USDT.sol.pica from the current static rate limit of 20% to 40%, as it has been consistently near 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 1.7 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) (20% Cap)
- USDT.pica (Picasso bridged from Solana) (20% Cap)
- USDT.inj (Injective Bridge from Ethereum) (20% 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 Picasso
Picasso is a DeFi infrastructure-focused Layer 1 protocol that leads the industry in building the trust-minimized interoperability solution - Cross-Ecosystem IBC.
In collaboration with the University of Lisbon, Picasso has developed an innovation that allows Solana and other IBC-incompatible chains to be capable of supporting IBC for the first time. This solution is an AVS powered by the Solana Restaking Layer and deployed on Solana as a smart contract, providing all of the features needed to make Solana IBC-compatible. Operators of the AVS receive messages about transactions on Solana, using this information to create blocks on the AVS that reflect these Solana transactions.
Target Onchain Date: 28th November 2024
Alloyed USDT: Increase USDT.eth.wh static limit to 40%
This proposal requests expanding USDT.eth.wh from the current static rate limit of 20% to 40%, 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 1.7 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) (20% Cap)
- USDT.pica (Picasso bridged from Solana) (20% Cap)
- USDT.inj (Injective Bridge from Ethereum) (20% 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: 28th November 2024