IBC Rate Limit Review - July 2024

Proposal Discussion
1

This proposal reviews the IBC rate limits, last adjusted in Proposal 778 to remove rate limits for qATOM and add rate limiting for USDT.axl and ISLM.

Background

The IBC Rate Limit module is a safety control implemented in v13, intended to protect assets on Osmosis in the event of security issues with:

  • Osmosis
  • A counter-party chain
  • IBC

Rate limits allow only a specified net percentage change in the quantity of an asset on Osmosis within a specified period.

Slowing down the rate of security incidents allows validators more time to respond, investigate, and take any required action. It either caps the rate at which exploited tokens generated elsewhere can be sent to Osmosis for disposal or prevents unusually high amounts of tokens on Osmosis from being removed.

Current IBC Rate limits can be monitored on the Range Dashboard.

These limits currently cover 83% of non-OSMO liquidity; this proposal adjusts this to 86%.

Proposed Values

Current Denominations - Adjustments

None

Current Denominations - Removals

To be removed due to lower liquidity levels, which cause the daily caps in raw assets to be lower than expected.
qATOM has hit the daily caps repeatedly since these were implemented but no further action has been taken as these appear to have been legitimate withdrawals.

qATOM (83k Liquidity) - ibc/FA602364BEC305A696CBDF987058E99D8B479F0318E47314C49173E8838C5BAC

New Denominations

To be set at net flows of 25% per day and 50% per week. These assets have liquidity in the range at which other rate limited assets have been added (350k+)

USDT.axl (750k Liquidity) - ibc/8242AD24008032E457D2E12D46588FD39FB54FB29680C6C7663D296B383C37C4

ISLM (1.35m Liquidity) - ibc/69110FF673D70B39904FF056CFDFD58A90BEC3194303F45C32CB91B8B0A738EA

Target Onchain Date: 8th July 2024

1 Like
2

I don’t understand why qATOM would be removed if the withdrawals are legitimate, but it has also hit the cap a couple of time. Why would this not be covered in the adjustments group?

3

It’s hit the cap several times legitimately in the same direction, so that cap now gets hit with only 20k movement which means it is getting triggered during normal trading.
If it has the liquidity it does now we wouldn’t have added it.

4

Ah wait, this is a bit harder to read hahaha

It is about removing the limit, so larger IBC movements are possible.

Regarding the liquidity, is there a place where you check the liquidity now?
info.osmosis.zone is offline, so I am searching for a new good location to see what has happened to liquidity in the past period.

1 Like
5

I wish there was a convenient one.
This is the main gap we have since missing the info site, but it is being worked on.

There’s a spot check on the new assets info page:

The only solution I’ve found so far for historical is to pull the imperator data into a sheet and query that:

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6

Wow, that is an enormous drop in liquidity. Is that even considering the protocol owned liquidity in that pool? Because it seems kinda low.

7

Don’t think there’s any for qATOM?
All the transfers were by the same user who was also a validator.

8

Whups, you are right. We have qOSMO, not qATOM… my bad, sorry!