This proposal asks that the ampOSMO and bOSMO liquidity currently deployed on White Whale to be reassigned to Margined strategy deployments.
Current Status of Liquidity
This liquidity is currently held in a multisig as specified in Proposal 821.
This liquidity was guaranteed to be held in this multisig for at least 6 months or until it comprises the community pool’s only OSMO liquid stake holding above the equivalent redemption rate, whichever is longer.
The current status of OSMO liquid stake holdings from community pool deployments are:
With stOSMO and qOSMO, apart from that collected from taker fees, being in Margined vaults in positions up to the redemption rate.
Proposed Change
This liquidity is requested to be withdrawn from the bOSMO/OSMO and ampOSMO/OSMO White Whale pools and deployed, as is, into the Margined LST strategies used in proposals 846 and 847.
Since these positions were deployed with purely backing OSMO six months ago, they rapidly became the main markets for these assets. While bOSMO has seen more usage than ampOSMO, both liquidity supports will be maintained and added to the Margined strategy, further increasing the resilience of the peg and usability of these LSTs while adding more efficient buy-side liquidity to the redemption rate.
The holding multisig is requested to return these receipt tokens to the Osmosis community pool, and governance will guarantee this liquidity for another six months.
Target Onchain Date: 7th March 2025
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I have seen some conversation from White Whale that they are closing down the chain and migrating somewhere else. Will this have effect on our positions as well? It seems more risky to me, especially with the uncertainty what they will do in terms of stability of their services.
From what I understand from their recent tweets:
- Migaloo chain may be depreciated
- $WHALE is therefore impacted as well as any pools involving that or derivatives.
- WhiteWhale DEX deployments on other chains not involving WHALE are unaffected
- There’s some comment about take rates going to 100%, but since this liquidity isn’t generating many fees now, that’s kind of irrelevant. Context may also make this just be WHALE LSTs.
https://x.com/WhiteWhaleDefi/status/1897233127044686158
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Reading this, why do you intend to return the funds to the CP? Will it not be easier to keep them in the holding multisig?
Trackability and recoverability basically.
We have about 5 multisigs holding funds that technically belong to governance, but the funds have no central viewpoint.
Governance must also rely on these multisigs to action items on its behalf. Initially, this deployment was given to the multisig since there were concerns that the SAIL defunding would lead to this liquidity being dissolved. By guaranteeing this for another 6 months but returning to the community pool, we simplify the overall DAO holdings again.
For reference, these are the other addresses tracked that either can’t be returned as is (Levana since the position isn’t tokenized), or would require the multisig to return them through a similar proposal:
Levana deployment of 350k OSMO
NTRN/OSMO token swap
MNTA/OSMO Token swap
ROAR/OSMO - Technically a purchase by ROAR from SAIL
