This proposal updates the route the chain uses to swap non-OSMO fees into OSMO, replacing USDC.noble with Alloyed USDC (allUSDC) as the first intermediary. It does not change the fees users pay.
Background
Each day, the chain swaps non-OSMO transaction fees and the non-OSMO share of taker fees into OSMO. A token with no direct pool against OSMO is swapped through an intermediary: the first token in the txfees parameter FeeSwapIntermediaryDenomList that has pools on both legs. The route lookup reads ProtoRev’s pool records, which only cover pairs that include a ProtoRev base denom.
The list is currently USDC.noble, ATOM, allBTC, OSMO.
Motivation
USDC liquidity on Osmosis is moving from USDC.noble to allUSDC.
ProtoRev’s base denoms now include allUSDC in place of USDC.noble. As a result, USDC.noble no longer resolves as an intermediary, and allUSDC is not on the list. Six tokens whose only route to OSMO runs through allUSDC are not swapped today and instead accumulate in the fee collector; this number will grow as more markets move to allUSDC.
Proposed change
A txfees parameter change setting FeeSwapIntermediaryDenomList to allUSDC, allBTC, ATOM, OSMO:
- allUSDC becomes the first intermediary.
- allBTC and ATOM stay as fallbacks, for tokens whose deepest markets are against them.
- USDC.noble is removed. No token that is swapped today loses its route.
Target Onchain Date: 4th November 2026