Rate Limit adjustment: Remove CUDOS limits

Proposal Discussion
1

This proposal removes rate limits for CUDOS due to the upcoming migration event to ASI, reducing assets held on Osmosis.

Background

Rate Limits

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 .

ASI migration

As previously referenced in Proposal 810, several AI projects are merging to become the Artificial Superintelligence Alliance.

CUDOS’ inclusion in this was passed in CUDOS Proposal 21

As specified in this proposal, CUDOS is expected to halt at the end of October, and the majority of liquidity has already been withdrawn from Osmosis as it delists from exchanges.

Target Onchain Date: 14th October 2024

2

If it already withdrawn mostly, is a lifting of the limits then required?
Is there to much still on Osmosis which is in danger when the limits are not lifted?

3

It isn’t a threat to Osmosis here - it’s a potential loss of value for users.

Osmosis had something like 500k dollars of CUDOS onchain which has a 50% weekly tolerance.

All CUDOS need to be converted to FET before the chain halts in a couple of weeks. I’m not saying I agree with this hard cutoff, just that it appears to be in place.

If that means that in the next two weeks, only around 75% of CUDOS can be withdrawn with these rate limits in - 50% of the current, then 50% of the new lower amount.

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This is the kind of legitimate bulk withdrawal that

will ease, however since this is time critical and that is undergoing final tests this proposal is going up separately.

4

Clear!

So it is not so much an issue for Osmosis as a DEX, more like a service to the users to make sure they are able to withdraw when they see fit.

And I can imagine the time-critical aspect, since we still have 5 days delay when this is brought on chain before it is passed and active.

Since CUDOS will become irrelevant, will it also be disabled later on in a follow-up?

5

We’ve seen chains shut down or migrate before - Cerberus, Mars, Astro and Quasar for examples.

Usually, the token remains tradable on Osmosis, but displays are encouraged to reflect the depreciated nature and we use transmuter pools to ease any migrations where possible.