Conditionally Revert to wstETH.axl as the Canonical Version of wstETH on Osmosis

Proposal Discussion
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Update 11/7/23: Contributors from Neutron have reached out and confirmed the UI is nearly done! Based on that, this proposal will not be going on chain. Will revisit this in a week if we don’t hear any news. More info here: https://x.com/RoboMcGobo/status/1722067681208078542?s=20

This is a proposal for Osmosis to treat wstETH.axl from the Axelar bridge as the canonical version of wstETH for all purposes if Neutron fails to provide a working bridge UI for wstETH.neutron by 11:59 PM UTC on November 20, 2023.

Background

Per the launguage of proposal 626 Osmosis’s current canonical representation of wstETH is the representation bridged over from Neutron via IBC. Although this proposal passed two months ago, Neutron still has not provided a working bridge UI to bring its version of wstETH to Osmosis.

Meanwhile, wstETH has been actively tradeable on Neutron for over 6 weeks, where it has gained significant TVL as well as an integration on the Mars lending outpost on that chain. Osmosis has no liquidity for wstETH at all, as it is dependent on a working UI provided by Neutron in order to see liquidity bridged en-masse.

As it stands, Neutron contributors have no incentive to provide a working UI to bring wstETH to Osmosis, and are in fact actively incentivized to delay in order to build up a stronger first-mover advantage on the Neutron chain. This proposal aims to give them that incentive.

Proposal

If passed, this proposal will require that Osmosis revert to wstETH.axl as the canonical version of wstETH for all purposes on Osmosis if Neutron does not provide a bridging ui according to the following specifications by 11:59 PM UTC on November 20, 2023:

  • The UI must allow for bridging wstETH directly from Ethereum and L2s to Osmosis and back

  • The UI must allow for direct IBC transfers of wstETH from Neutron to Osmosis

Effectively, satisfying these conditions will give Osmosis a bridging UI for wstETH that has feature parity with the one offered for the Neutron chain.

If Neutron provides the requested UI by the allotted deadline, this proposal will be considered null-and-void. If Neutron fails to provide the requested UI by the allotted deadline, the canonical representation of wstETH cannot be changed again without a subsequent proposal approved by governance.

5 Likes
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I don’t think anyone would be against this.

Any response from Neutron or are they ok with losing the canonical status on Osmosis?

1 Like
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They’ve reached out, and I’ve posted an update on the main post as well as on twitter here! https://x.com/RoboMcGobo/status/1722067681208078542?s=20

TLDR: Proposal won’t be going on chain right away. This UI appears to be almost ready!

1 Like
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Sounds good!

Sometimes putting pressure on something in a polite way works :+1:

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Any updates from the Neutron contributors on this?

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I’ve just seen this go up on Lido’s forums. Lido on Cosmos: Initial Deployment - #3 by JohnnyWyles - Proposals - Lido Governance

Looks like liquidity mining is about to start, which means a frontend integration will definitely happen before then. Maybe @JohnnyWyles or @Spaydh can give a bit more context here?

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Right now the Neutron side of things is done, the work is with our deposit page to allow the full deposit process on there rather than the Neutron bridge page. The deposit process is currently being reworked for assets that originate on Ethereum so waiting for that to be finished.

I think it is pretty close to completion but hesitate to give a date since there are a lot of things being worked on simultaneously.

2 Likes
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Thanks Johnny! Kinda figured this was the case!