Increase Static Cap of WBTC.axl to 75%

Proposal Discussion Alloyed Assets
1

This proposal would increase the Static cap on WBTC.eth.axl within Alloyed BTC to be 75%.

Background

In Proposal 815, the static cap was initially set at 50%. This proposal would expand the cap to 75% to minimize the time it is hit legitimately.

The current supply of WBTC.eth.axl on Osmosis is 212. The current supply of natively issued WBTC on Osmosis is 86.

This translates to around 71% of the on-chain supply of WBTC coming from Ethereum via Axelar. The rate limit should be set above this to allow all of this to migrate to the canonical BTC alloy if it wishes.

As alternative BTC bridges are added to the Alloy and additional native WBTC mintage occurs, this should be lowered again.

Target Onchain date: 5th September 2024

3 Likes
2

Would it be a problem if it is left at 75%?

I mean, when other versions are becoming more popular the percentage will go down automatically, right?

So in that case the cap might never be reached anymore.

3

It likely won’t be a problem once change limits are activated and more versions are added.

However, we don’t want to rely too much on any one bridge, so eventually restricting overall exposure to each is desired.