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.
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.
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.