This proposal would recognize the IBC Native version of USDC minted on Noble as the canonical version of USDC used on Osmosis, as well as changing the Quote asset used in the creation of Supercharged Liquidity pools from axlUSDC to USDC via Noble.
This proposal signals that USDC minted via Noble will be the canonical version of USDC in use on Osmosis, replacing the current version that arrives via the Axelar bridge from Ethereum.
Canonical status sets the following agreement:
Default Asset List – assets will be unprefixed in the app.osmosis.zone default asset list, e.g. USDC with all other bridges’ assets being bridge1USDC, bridge2USDC, etc. Osmosis DAO requests that allied/friendly front-ends do the same, though any front-end is free to make its own decisions.
Osmosis Incentives – the DAO commits to prioritizing the Canonical Bridge assets, incentivizing them earlier and more heavily than the comparable assets of non-canonical bridges. In general, canonical pools should earn substantially more incentives per dollar of liquidity than their counterpart pools–under the base incentives model, not necessarily counting external incentive matching.
Incentives involving axlUSDC are not directly impacted by this proposal, but this should serve as notice that they will be removed in a future proposal. As axlUSDC has been the dominant stablecoin in use across the Cosmos this will occur in stages to allow protocols to adopt the more native version of USDC at their own pace while not incentivizing excessive liquidity to remain on the non-canonical version.
Quote assets restrict the combinations of pairings possible in Supercharged Liquidity pools to improve routing as mentioned in Proposal 532.
Quote assets in use are (axl)USDC, USDT, DAI, WBTC, ETH, ATOM and OSMO.
This proposal would change the quote assets permission to use USDC IBC minted and transferred from Noble rather than the IBC hash of the USDC bridged from Ethereum via Axelar.
This causes all future pools using the USDC quote asset to use the native version on Osmosis. Existing pools are unaffected by this change as quote assets are validated only at the point of creation.
Target on-chain date: Latest of 11th September or Noble USDC launch