Enable Superfluid Staking for USDT pools

This proposal would enable Superfluid Staking for OSMO pairings of USDT.

These pools are:

Adding these pools to Superfluid Staking allows users in a Classic pool or who have a passive position in a Supercharged pool to stake the OSMO portion of their liquidity.

At the current 25% discount rate, 75% of the OSMO in a position is able to be staked.

This proposal asks whether governance trusts in the stability and security of USDT via Kava sufficiently to allow their tokens to have an influence on Osmosis governance.

About USDT

Tether tokens are the most widely adopted stablecoins, having pioneered the concept in the digital token space. A disruptor to the conventional financial system and a trailblazer in the digital use of traditional currencies, Tether tokens support and empower growing ventures and innovation throughout the blockchain space. Tether tokens exist as a digital token built on multiple blockchains.

About Kava

The Kava Network is the first Layer-1 blockchain to combine the speed and scalability of the Cosmos SDK with the developer support of Ethereum. The Kava Network will empower developers to build for Web3 and next-gen blockchain technologies through its unique co-chain architecture.

Target on-chain date: 15th February 2024

2 Likes

Ok for me :slight_smile:

To think further in the future; should SFS not be enabled for assets which we also deem worthy to serve as transaction fee asset? Those are apparently ok enough to serve such a purpose, so we trust them to be around for longer. Why not also include those for SFS as well?

SFS should have a slightly higher requirement since it has security implications (although negligible with so many assets enabled) whereas transaction fees just has a potential increase in cost for transactions until removed.

I’m going to be proposing adding a lot more pools in the coming weeks, SFS is relatively unused since narrow positions are more efficient at earning spread fees. Making the passive positions more attractive again adds further width for users who don’t want to rebalance at all. We pretty much stopped adding new ones after Supercharged pools launched, but a few people have been asking about them recently.

That is very important indeed, since it makes the value of an asset more resilient when SuperCharged positions run out of their boundaries. A healthy mix is the best imo.

How much risk do you think? In essence there are a lot of the bigger assets which could be SFS enabled if we look at the list of gas-fee-accepted assets. The riskier assets also have smaller liquidity (in general), which in turn makes the risk smaller. Assets like DYM, TIA have high liquidity, but I guess also a relatively smaller risk due to the high level of interest expressed in the asset in general.