This proposal would dissolve protocol-held OSMO paired pools against non-correlated minor assets to support the strategy of OSMO decoupling.
This strategy aims to increase the independence of OSMO as it moves from the previous routing use case to being primarily used for governance and revenue.
Stable tokens such as USDC and USDT and high market cap tokens that trade primarily against stable tokens are the desired pairings to maintain liquidity.
While performing acceptably in terms of liquidity ratios, this deployment does not facilitate as much volume as originally predicted in the deployment. The non-protocol liquidity Supercharged pool facilitates around 4 times more volume per unit of liquidity, while the classic pool facilitates similar amounts as the Astroport deployment.
Both assets would be withdrawn and returned to the Community Pool as liquid assets.
Wow… we’ve given a lot of money away there (looking at the shares of OSMO in the pools) At least we are finally putting an end to this downside pressure on Osmo, but can’t we buy it all back before closing the pairs? Especially WHALE & WYND… what else would the community pool do with those tokens otherwise?
Regarding WHALE, why the special treatment of returning it to Sail DAO? If I read Proposal 812 correctly, Osmosis community already controls WHALE, so why not swap it all back to OSMO before writing it off?
If we don’t do this, the community won’t probably be able to do anything with them, and would even most probably forget about them, and we lose the opportunity to buy back a bit of OSMO. imho better act now and swap AXL, WHALE, and WYND for OSMO, and then close the pools. Additionally, we could then even burn the corresponding OSMO, but that can be a separate proposal.
Regardig AXL, since there are other pools and the $ amount is significant, the sale should be done gradually in steps (like with Calc finance’s DCA).
I’d rather tackle any further usage of WYND and AXL in another proposal since selling those is potentially more contentious than a simple unwinding.
A WYND sale would effectively rug any remaining value from their DAO - although I think it’s inactive now anyway.
WHALE is to be returned as the original SAIL proposal funded this from the Migaloo Foundation rather than OSMO being traded for it. While the Community pool has possession of this WHALE, it doesn’t feel like something that is ours to sell.
AXL is currently pretty close in ratio so seems like something that would add more complexity than the benefit. Using this in future to establish more Axelar bridged liquidity routes, similar to Proposal 802 is likely the better usage.
Is the WHALE in the CP not owned by Osmosis?
Initially there was a 50/50 split in terms of added liquidity, but wasn’t the liquidity meant to be managed by the respective projects themselves?
The previous post mentioned is that it was a swap from White Whale against 100 million SAIL at the time. So in essence it is not theirs anymore, since they traded it.
The Whale/OSMO, ROAR/OSMO, and LAB/OSMO LP shares contain funds that are comingled with funds belonging to the SAIL DAO, Lion DAO, and Mad Scientists teams, respectively. If these teams wish, these positions can be unwound by a governance proposal on Osmosis and funds returned to the respective teams. Otherwise, they’ll sit in the community pool pending further disposition instructions via governance.
ROAR/OSMO is currently one of 3 OSMO-paired liquidity positions held in external multisigs that are out of the remit of governance to directly unwind - this could be signaled, of course.
LAB/OSMO was unwound in Proposal 851 which this WHALE unwinding would be directly comparable to.
That swap for 100m SAIL is why this would be returned to SAIL rather than the Migaloo Foundation.
At least we are finally putting an end to this downside pressure on Osmo, but can’t we buy it all back before closing the pairs? Especially WHALE & WYND… what else would the community pool do with those tokens otherwise?