This proposal would change the token that non-Quote assets are swapped to on Osmosis from USDC.axl to USDC via Noble.
Osmosis currently sends 33% of non-OSMO tokens collected via Taker fees to the community pool.
These are sent directly if they are an existing Quote asset and swapped to a denom set by governance if not.
This denom is currently set to USDC.axl. This proposal asks that it be adjusted to native USDC as the most native version of USDC.
Setting to be changed
Current setting: ibc/D189335C6E4A68B513C10AB227BF1C1D38C746766278BA3EEB4FB14124F1D858
New Setting: ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4
Target on-chain Date: 10th November 2023
Yes, since we have “native” USDC recognized in prop 624 we should swap this process as well to use the canonical version of Noble USDC.
Probably not something governance handles, but it would be great if the ‘featured’ assets listed at the top of the swap widget included USDC via Noble instead of USDC.axl. I believe the migration from USDC.axl to USDC via Noble is far enough along; USDC via Noble liquidity has grown substantially, volume is consistently among the top pairs, and it is listed on Mars, recognized as the native denomination. It may be confusing for unfamiliar users to see USDC.axl as a ‘featured’ swap router asset when they first go to make a swap. There is already confusion caused by Cosmos platforms having different ways of displaying Axelar-bridged USDC (formerly USDC on Osmosis, axlUSDC in Kujira, axlwETH on Crescent, etc.) and the Noble chain ‘caption’ throwing off users familiar with an ecosystem’s native USDC not having any extra prefix, suffix, or issuance chain identifier. Featuring assets in the swap router is a good way to signal to users what the DEX’s ‘native’ token is, imo.