Migration of Parameters and Usage from Noble USDC to Alloyed USDC

This proposal:

  • Replaces USDC via Noble in every protocol parameter that names a USDC denom with Alloyed USDC.
  • Confirms the usage of USDC Alloyed Asset as the canonical version of USDC on Osmosis.

Background

USDC.inj is now registered across the Cosmos ecosystem and live on Osmosis.

This proposal moves Osmosis from basing parameters on USDC.noble to targeting an alloy of the three primary USDC options in use: USDC.noble, USDC.inj and USDC.eth.axl, to encourage migration to a single quote asset.

This alloy’s composition will change over time as usage of included variants shifts, with removals managed by the Alloyed Asset moderator subDAO and additions managed by Osmosis governance, so the primary quote denomination is not dependent on any single issuance route.

Parameters changed

Parameter From To Modified In Purpose
poolmanager pool_creation_fee 20 USDC.noble 20 allUSDC Proposal 767 Cost to create a new pool, paid to the community pool
block-sdk reserve_fee 0.1 USDC.noble 0.1 allUSDC Proposal 958 Minimum Top of Block bid
block-sdk min_bid_increment 0.1 USDC.noble 0.1 allUSDC Proposal 958 Minimum Top of Block bid increment
taker_fee_params.community_pool_denom_whitelist includes USDC.noble USDC.noble replaced by allUSDC Proposal 1026 Accumulates allUSDC in the community pool instead of USDC.noble

Canonical status

The alloy is formed to the generic standard approved in Proposal 826, “Alloyed Assets: Generic specification approval”, which recognizes alloyed assets as the canonical representation of their underlying asset on Osmosis. This proposal asks governance to confirm the specific case rather than to establish new policy.

Alloy Configuration

Contract: osmo147h5x9pcj7lm0cttlaefx6sqq5vdfnmwfcqxkmjd7exqm9gc7grqhr75m0
Pool: 3497
Code ID: 996 (transmuter v3.2)
Denom: factory/osmo147h5x9pcj7lm0cttlaefx6sqq5vdfnmwfcqxkmjd7exqm9gc7grqhr75m0/alloyed/allUSDC
Transmuter Admin: Osmosis governance module account
Moderator: Alloyed Asset moderator subDAO
Constituents: USDC.noble, USDC.eth.axl, USDC.inj
Alloy Normalization factor: 1

No rate limiters are currently set on this alloy.

Target Onchain Date: 24th August 2026

Will regular users notice anything different when this happens? In particular, will wallets and the Osmosis app make it clear which version of USDC someone holds, and whether they need to do anything themselves?