# Unwind OSMO paired liquidity pools for lower cap assets **URL:** \ **Category:** Proposal Discussion\ **Tags:** passed\ **Created:** [January 10, 2025, 5:04pm UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412 "2025-01-10T17:04:50Z")\ **Posts on this page:** 9\ **Page:** 1
**Author:** ![JohnnyWyles](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/johnnywyles/32/3114_2.png) [@JohnnyWyles](https://forum.osmosis.zone/u/JohnnyWyles)\ **Post date:** [January 10, 2025, 5:04pm UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/1 "2025-01-10T17:04:50Z")
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. # OSMO Liquidity Pairings Impacted [AXL](https://app.osmosis.zone/assets/axl)- $570k - Deployed to Astroport in [Proposal 756](https://daodao.zone/dao/osmosis/proposals/756) - Initial liquidity of [650k OSMO, 443k AXL](https://daodao.zone/dao/osmo1rvq5cq2j35k7sqqz49e5e8zezl45fcywcawazh46qnc0g96d0d6sasqsgc/proposals/A8) - Current liquidity of 612k OSMO, 477k AXL - 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 - Both assets would be withdrawn and returned to the Community Pool as liquid assets. [WHALE](https://app.osmosis.zone/assets/whale)- $64k - Initially Deployed by SAIL DAO - Clawed back from SAIL DAO during [Proposal 812](https://daodao.zone/dao/osmosis/proposals/812) - Initial Status: [136.3k OSMO, 5M WHALE](https://daodao.zone/dao/osmo1pscy6u25wq7r8dmpepny5r0xk095xfzduvzf29epradu8dr68fvs8mv2vn/proposals/A11) - Current Status: 68.6k OSMO, 11.12M WHALE - The WHALE removed from this liquidity position will be returned to [SAIL](https://daodao.zone/dao/osmo106tvcj58rvdn9k36m9m3xcmcwk2c3fgft3ldcst9lgy05gcmjanqexru3h/treasury) as the original source. - The OSMO will be returned to the Community Pool. [WYND](https://app.osmosis.zone/assets/wynd)- $1.3k - Token Swap from [Proposal 420](https://daodao.zone/dao/osmosis/proposals/420) - Initial Status: [21.7k OSMO, 85k WYND](https://www.mintscan.io/osmosis/tx/78A8F5B3D1C200139A1A89BCE8CEE7138FCE0DACB5651B2D18D55D5B3A0DD521?height=8186556) - Current Status: 2.9k OSMO, 734k WYND - 52,000 OSMO originally with 26k swapped. Now valued at 3k OSMO. - Both assets would be withdrawn and returned to the community pool, as there are no markets for disposing of the WYND side. Other - $125 - These pools were created during the [v17 Software Upgrade](https://daodao.zone/dao/osmosis/proposals/586) to enable direct migration from Superfluid Classic pools to Superfluid Supercharged pools. - They consist of a range of assets that would be added to the relevant Alloy if one is available before being returned to the Osmosis community pool. ## Implementation This proposal would send all liquidity receipts to the [Osmosis Liquidity subDAO](https://daodao.zone/dao/osmo1rvq5cq2j35k7sqqz49e5e8zezl45fcywcawazh46qnc0g96d0d6sasqsgc/home) for action as detailed. **Target Onchain Date** : 15th January 2025 ---
**Author:** ![kopeboy](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/kopeboy/32/745_2.png) [@kopeboy](https://forum.osmosis.zone/u/kopeboy)\ **Post date:** [January 11, 2025, 10:51am UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/2 "2025-01-11T10:51:15Z")
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](https://daodao.zone/dao/osmosis/proposals/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). ---
**Author:** ![Alex1](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/alex1/32/2128_2.png) [@Alex1](https://forum.osmosis.zone/u/Alex1)\ **Post date:** [January 11, 2025, 11:34pm UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/3 "2025-01-11T23:34:41Z")
> [@JohnnyWyles](#): > > - Initial Status: [21.7k OSMO, 85k WYND](https://www.mintscan.io/osmosis/tx/78A8F5B3D1C200139A1A89BCE8CEE7138FCE0DACB5651B2D18D55D5B3A0DD521?height=8186556) > - Current Status: 2.9k OSMO, 734k WYND Agree with Kopeboy here. Those pools have done nothing good for osmo… constant sell pressure. Let’s buy back Osmo ---
**Author:** ![JohnnyWyles](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/johnnywyles/32/3114_2.png) [@JohnnyWyles](https://forum.osmosis.zone/u/JohnnyWyles)\ **Post date:** [January 12, 2025, 10:51am UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/4 "2025-01-12T10:51:30Z")
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](https://forum.osmosis.zone/t/sail-with-the-whale-v2-sail-dao-updated/1041) 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](https://daodao.zone/dao/osmosis/proposals/802) is likely the better usage. ---
**Author:** ![LeonoorsCryptoman](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/leonoorscryptoman/32/208_2.png) [@LeonoorsCryptoman](https://forum.osmosis.zone/u/LeonoorsCryptoman)\ **Post date:** [January 13, 2025, 7:53pm UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/5 "2025-01-13T19:53:47Z")
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. And this proposal was only clawing back the OSMO? > **[Mintscan](https://www.mintscan.io/osmosis/proposals/812)** > > Interchain block explorer and data analytics for sovereign blockchain networks. ---
**Author:** ![JohnnyWyles](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/johnnywyles/32/3114_2.png) [@JohnnyWyles](https://forum.osmosis.zone/u/JohnnyWyles)\ **Post date:** [January 14, 2025, 11:10am UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/6 "2025-01-14T11:10:28Z")
> 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](https://daodao.zone/dao/osmosis/proposals/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. ---
**Author:** ![LeonoorsCryptoman](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/leonoorscryptoman/32/208_2.png) [@LeonoorsCryptoman](https://forum.osmosis.zone/u/LeonoorsCryptoman)\ **Post date:** [January 15, 2025, 6:46pm UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/7 "2025-01-15T18:46:10Z")
Perfect! Ok for me 🙂 ---
**Author:** ![Calabi\_Yau](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/calabi_yau/32/2342_2.png) [@Calabi\_Yau](https://forum.osmosis.zone/u/Calabi_Yau)\ **Post date:** [January 22, 2025, 3:12pm UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/8 "2025-01-22T15:12:19Z")
[https://wallet.keplr.app/chains/osmosis/proposals/891](https://wallet.keplr.app/chains/osmosis/proposals/891) This proposal has passed: So, wanted to inquire about the timeline for returning the associated WHALE back to Sail DAO? @JohnnyWyles ---
**Author:** ![JohnnyWyles](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/johnnywyles/32/3114_2.png) [@JohnnyWyles](https://forum.osmosis.zone/u/JohnnyWyles)\ **Post date:** [January 22, 2025, 5:05pm UTC](https://forum.osmosis.zone/t/unwind-osmo-paired-liquidity-pools-for-lower-cap-assets/3412/9 "2025-01-22T17:05:45Z")
It probably will take a few days, several transactions to load and sign here which can be slow with a multisig. Can see the progress here: > **[Osmosis Liquidity SubDAO](https://daodao.zone/dao/osmo1rvq5cq2j35k7sqqz49e5e8zezl45fcywcawazh46qnc0g96d0d6sasqsgc/proposals)** > > This group acts as an intermediary for Osmosis governance proposals in order to perform multi-stage or time-dependent transactions.