Launching ERIS Protocol on Osmosis

Proposal Discussion DApps / Tooling
1

Original Thread: Commonwealth

TLDR:

We want to deploy our liquid staking protocol (Amplifier), governance (Amp Governance) and further DeFi products natively on Osmosis.

All contracts are Open Source / Source Available here : GitHub - erisprotocol/contracts-tokenfactory or https://github.com/erisprotocol

Links to audits : https://github.com/SCV-Security/PublicReports/tree/main/CW/ErisProtocol, https://github.com/oak-security/audit-reports/tree/master/Eris Protocol

Hi I am Philipp from ERIS Protocol,

we are a liquid staking provider in Cosmos with main base on Terra.

We would like to start launching our products on Osmosis. ERIS protocol develops a suite of products around liquid staking and creates a stable economy around yield-generating assets.

Liquid staking tokens will be at the core of DeFi in the next few years, as it allows an efficient usage of capital while also providing security for the chain.

Having multiple different liquid staking providers reduces the single point of failure risk of Osmosis and creates a flourishing diversified ecosystem. Our contracts were audited 4 times over the last year.

Our products

Amplifier : Liquid staking

Amp Governance : Fair delegation and governance framework (with proxy governance)

Amp Extractor : Yield conversion

Amp Compounder : Yield optimizer

Amp Z : DeFi automation framework

Arb Vault : Slow burn arbitrage vault to stabilize the TOKEN-LST peg.

Manual Arbitrage : Slow burn arbitrage, but manual execution

How we tackle LST risks

The protocol is geared toward reducing all four liquid staking risks shown by Zaki on Cosmos Hub: Governance risk, Validator corruption risk, Vote power concentration risk and Cascading liquidations risk ( risks )

Governance risk : Using Amp Governance, users and the open market decides on the governance.

Validator corruption risk : Using Amp Governance, Validators wanting to receive delegations will have a curve style bidding war in locking capital to receive delegations. This leads to exactly the opposite of validator corruption. You will enable validators to have a strong vested interest in the chain.

Vote power concentration risk : Using Amp Governance, users and the open market decides on the delegations.

Cascading liquidations risk : This requires multiple products / apps to be deployed to keep stability and is our main goal as LST provider. Our just launched Arb Vault on Terra showcases how we hold the peg between LUNA-LSTs which can also be deployed for other LST pairs on other chains like osmosis, to stabilize the LST-TOKEN peg and providing users the ability to participate. Arb Vault

Stable LSD economy

For the usage and risks of liquid staking derivatives it is essential to provide a stable LST economy. LSTs can have the issue of leading to cascading liquidation, even though the price of the underlying asset has not changed. We provide the tools and products to support a stable economy of LSTs.

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Fair delegations

When providing coins to a LST-protocol the depositor gives away his delegation and governance power to the protocol. It leads to possible validator cartels or giving the power to a different governance token. It is time for the protocols to give this power back to the user and enable a fair delegation and governance framework.

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You can checkout our products on Terra: https://www.erisprotocol.com/

All the details to our products can be found here https://docs.erisprotocol.com/

We are looking forward to your feedback and if the community is interested in us launching on Osmosis!

Proposal

In this proposal we are asking to instantiate ERIS products on Osmosis. These will consist of our tokenfactory based amplifier hub (1), our amp governance (2: voting escrow, amp gauge) and in the future amp z for DeFi automations and Arb Vault to stabilize liquid staking tokens. We also require helper contracts for fee conversion.

We are asking for having a deployer address whitelisted and will be using a builder multi-sig to manage the contracts after mainnet tests have succeeded.

While this proposal gives authority for osmo1dpaaxgw4859qhew094s87l0he8tfea3lv30jfc to permissionlessly upload CosmWasm contracts to Osmosis, governance only signals approval for contracts relating to the function of ERIS Protocol.

Message

{ “param”: { “subspace”: “wasm”, “key”: “uploadAccess”, “value”: “{"permission":"AnyOfAddresses","addresses":["osmo1cd4nn8yzdrrsfqsmmvaafq8r03xn38qgqt8fzh","osmo1wl59k23zngj34l7d42y9yltask7rjlnxgccawc7ltrknp6n52fps94qsjd","osmo19vxp8vq8qm368dr026qxh8v82satwaf79y235lfv6wmgpwxx8dtskedaku","osmo1e0x2hnhhwyek7eq3kcxu2x6pt77wdnwz0lutz9fespdr9utq963qr0y5p5","osmo14n3a65fnqz9jve85l23al6m3pjugf0atvrfqh5","osmo15wna5dwylkuzvljsudyn6zfsd4zl0rkg5ge888mzk4vtnjpp0z5q4e9w58","osmo1r02tlyyaqs6tmrfa4jf37t7ewuxr57qp8ghzly","osmo1ae2z8svz9nvklt94mvrskr7kdwy0qrlrsehe6f","osmo1lqyn9ncwkcqj8e0pnugu72tyyfehe2tre98c5qfzjg4d3vdw7n5q5a0x37", "osmo1dpaaxgw4859qhew094s87l0he8tfea3lv30jfc"]}” } }

For the proposal, the current params have been queried through: https://lcd.osmosis.zone/cosmos/params/v1beta1/params?subspace=wasm&key=uploadAccess

Links to audits: https://github.com/SCV-Security/PublicReports/tree/main/CW/ErisProtocol, https://github.com/oak-security/audit-reports/tree/master/Eris Protocol

Twitter: https://twitter.com/eris_protocol

Telegram: Telegram: Contact @eris_protocol

Github: erisprotocol · GitHub

1 Like
2

approve:

  • fully open source
  • team seems cool
  • audited
  • see no compelling reason that we should not approve unless there’s a vibe that it will somehow endager network security

questionable:

  • bribe for delegations

overall, I’m okay with it

(bribe for delegations was inevitable I guess)

3

Leonoor’s Cryptoman
osmo14amd

•

4/24/2023

Interesting. So far we have LSD-providers which are running their own chain where you seem to be referring to a solution running on Osmosis itself.

Will it only create a LSD of OSMO? Or also work for other chains?

And the same question as @RoboMcGobo, what is your model of earning money (because every business needs one ;))?

4

0xPhilipp
osmo1dpaa

•

4/25/2023

Yes, our protocol will run on the Osmosis chain and not introduce any external chain risks and always have delegations and governance power aligned with OSMO stakers, as ampOSMO holders will have control over that.

We are deployed already on Terra, Terra Classic, Kujira, Migaloo, Juno and ChiHuaHua. Each of these deployments have their own sovereignty.

We are self-funded and received community funding grants on Terra and Kujira. Our goal is to provide the best value for the ecosystem and not extracting value. Right now we do not have a token and use the low 5% reward fee to cover operations and development costs.

5


RoboMcGobo
osmo1prtr

•

4/24/2023

Hi!

Thank you for this proposal and for explaining Eris Protocol in such great depth. Would you mind giving some more detail about what the specific ask of this proposal is? Based on the text, I’m assuming this is a proposal to instantiate Eris’s core contracts on Osmosis but that isn’t made super clear here. It would be helpful to have some background in the proposal text itself on things like:

  • Number of contracts you are seeking to instantiate and what their purpose is
  • Links to the code to be deployed
  • Whether you are seeking to have a deployer address whitelisted

You can find more info on some of the recommended proposal hygeine in the text of prop 438 here: Interchain Explorer by Cosmostation.

Also, would you mind providing some detail on how Eris’s fee structure works? What fees are taken out of LSD rewards, and to whom do those fees accrue?

Thanks again for this proposal! ^.^

6


0xPhilipp
osmo1dpaa

•

4/25/2023

Yes this proposal is about checking in with the osmosis community if they would be interested in us launching on Osmosis. We have not yet started our testing on the osmosis testnet, but expect to start soon if we receive positive feedback.

For us having a deployer address would be easier and create regular signaling text proposals only when we want to launch additional products on Osmosis.

To start we will have:

Amplifier = 1 contract

Amp Governance = 3 contracts

Thank you for the reference, will work through the proposal hygiene.

Generally we are sharing other products revenue with ampOSMO holders. So any product we deploy on Osmosis would have a revenue share with ampOSMO. ERIS does not have a token at the moment and charges a low 5% reward fee. This reward fee is to fund operations and development. We are self-funded and have received community grants for development and audits.