Change Scaling Factor Controller Address to stToken Scaling Factor Auto-update Contract

Proposal Discussion DApps / Tooling
1

Change Scaling Factor Controller Address to stToken Scaling Factor Auto-update Contract

Passing this proposal will change the scaling factor controller address of pools 922 (stEVMOS/EVMOS), 817 (stJUNO/JUNO), and 810 (stSTARS/STARS) from osmo1k8c2m5cn322akk5wy8lpt87dd2f4yh9afcd7af to osmo12yvjuy69ynnts95ensss4q6480wkvkpnq2z2ntxmfa2qp860xsmq9mzlpn.

Summary

The stToken Scaling Factor Auto-update Contract makes use of the Stride Redemption Rate Oracle Contract to automatically update the scaling factor for stToken stableswap pools.

Currently, the stOSMO/OSMO pool makes use of these contracts to update the scaling factor in an automated fashion (see proposal #668). However, the scaling factors for pools 922 (stEVMOS/EVMOS), 817 (stJUNO/JUNO), and 810 (stSTARS/STARS) are still updated every several days using a multisig address controlled by the Stride Association. Upgrading the remaining pools to the auto-update contracts, relinquishes this responsibility, which would thereafter be carried out in an automatic and fully trustless manner.

This proposal changes the scaling factor controller address of pools 922 (stEVMOS/EVMOS), 817 (stJUNO/JUNO), and 810 (stSTARS/STARS) from a multisig (osmo1k8c2m5cn322akk5wy8lpt87dd2f4yh9afcd7af) to the contract address of the Auto-update contract (osmo12yvjuy69ynnts95ensss4q6480wkvkpnq2z2ntxmfa2qp860xsmq9mzlpn).

Details

Normal stableswap pools concentrate the two tokens at a 1:1 ratio, which is ideal for USD stablecoins. But Osmosis stableswap pools have an optional scaling factor, which enables the concentration ratio to be continually scaled. This scaling factor is utilized for stToken stableswap pools, because stTokens constantly appreciate in value against their underlying tokens.

Currently, it is the responsibility of a Stride Association multisig address to gradually increase the concentration ratios on the stableswap pools. But that process can be automated.

For example, the stSTARS:STARS redemption rate is currently 1:1.80717. The Stride Redemption Rate Oracle Contract feeds this redemption rate to Osmosis. The stToken Scaling Factor Auto-update Contract can then take the stSTARS redemption rate and use it to adjust the scaling factor / concentration ratio on the stSTARS/STARS stableswap pool. In order to update this ratio, the pool’s controller address must be updated to the contract address.

The admin of the auto-update scaling factor contract is the same Stride Association controlled multisig that presently controls the pool’s scaling factor (`osmo1k8c2m5cn322akk5wy8lpt87dd2f4yh9afcd7af`). As a transitionary measure, the admin of the contract has permission to bypass the oracle and update the scaling factor of the pool directly.

Related Forum Posts:

Upload Stride Redemption Rate Oracle Contract

Upload stToken Scaling Factor Auto-update Contract

Change stOSMO/OSMO Scaling Factor Controller Address to stToken Scaling Factor Auto-update Contract

2 Likes
2

Makes sense to me. Can you provide the queries to verify that the scaling factor auto-update contract supports these?

3

These are the queries that the scaling factor contract makes to the redemption rate oracle contract (and then it transforms it into the scaling factor format needed for the pool ref).

# stEVMOS
>>> osmosisd q wasm contract-state smart osmo1df5d9wr6s3xp49qe3sgzyd6gwr4yxwl2ydey08rgac5u02wqnvyq0pd5m9 '{"redemption_rate": {"denom": "ibc/C5579A9595790017C600DD726276D978B9BF314CF82406CE342720A9C7911A01"}}'
data:
  redemption_rate: "1.579997972158251491"
  update_time: 1760554801

# stSTARS
>>> osmosisd q wasm contract-state smart osmo1df5d9wr6s3xp49qe3sgzyd6gwr4yxwl2ydey08rgac5u02wqnvyq0pd5m9 '{"redemption_rate": {"denom": "ibc/5DD1F95ED336014D00CE2520977EC71566D282F9749170ADC83A392E0EA7426A"}}'
data:
  redemption_rate: "1.807177336741096956"
  update_time: 1760554801

# stJUNO
>>> osmosisd q wasm contract-state smart osmo1df5d9wr6s3xp49qe3sgzyd6gwr4yxwl2ydey08rgac5u02wqnvyq0pd5m9 '{"redemption_rate": {"denom": "ibc/84502A75BCA4A5F68D464C00B3F610CE2585847D59B52E5FFB7C3C9D2DDCD3FE"}}'
data:
  redemption_rate: "1.763826537447824553"
  update_time: 1760554801

Let me know if that’s not what you were looking for!