Migration of Parameters and Usage from Noble USDC to Alloyed USDC

Proposal Discussion
1

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
block-sdk escrow_account_address Community Pool Forwarder - USDC Community Pool Forwarder - allUSDC Proposal 958 Receives Top of Block bid proceeds and forwards them to the community pool
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

2

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?

3

They will, the current USDC will be renamed to USDC.noble, and “USDC” will be the alloy referenced in this proposal.

Users holding USDC.noble or USDC.inj in their wallet will be prompted to convert both on the asset/portfolio screen and via a dismissible pop-up.

Users with liquidity of USDC.noble or USDC.inj in liquidity pools will also get a banner once this passes to perform a migration. However, the liquidity migration is manual rather than a guided flow like the asset conversion.

We can only adjust the primary frontend, so it is up to wallets what to display; some will choose to display, for example, USDC (Noble), USDC (Injective) and allUSDC

1 Like
4

Thanks, that clears it up. Clear names and a simple prompt should help a lot. The manual liquidity-pool migration is especially useful to call out early so users do not miss it.

5

Hey, what is the reason to add Axelar to the alloy? it seems like scope creep to migrating off noble usdc?

6

USDC.eth.axl is still about half the size of USDC.noble onchain - and by adding it to the alloy we can trigger the built in migration flow for users to be prompted to convert.

We should almost certainly remove it down the line. I also agree it introduces additional risk beyond the CCTP bridge, but Axelar has a very good track record too.