This proposal would whitelist the Transmuter contract ID 148 as a valid Code ID for CosmWasm pools in the pool manager, as well as enable the governance proposal type upload-code-id-and-whitelist by adding the cosmwasm pool module address to those allowed to upload code to chain: osmo1rxjakgd8yhks2j7hc7pt6a22z3zd64grexpyf7
Transmuter is a CosmWasm contract that allows 1:1 conversion of one asset to another.
Transmuter would be the first CosmWasm Pool to be uploaded to Osmosis, a pool type fully integrated with Osmosis’ existing pools but created via the instantiation of a CosmWasm contract, allowing deployment of new pool types without software upgrades.
Once instantiated with two assets, the contract functions as a pool with a fixed 1:1 ratio of token value, no matter the ratio of the assets in the pool.
Classic curve (Red), Stableswap (Blue) and Transmuter (Green)
For traders, this enables the Transmute function which allows the exchange of 1 unit of value of a token they possess that is in the pool with 1 unit of value of any other token that is present in the pool without any slippage.
For liquidity providers, one token can be added to the pool in exchange for a representative token of that value held within the pool. Owners of the representative tokens can choose which asset to withdraw from the pool.
As there is zero slippage or fee, liquidity providers must either be altruistic or obtain an alternative benefit for adding tokens to the pool.
V1 of the Transmuter may be used to convert freely between identical tokens of different origins, such as axlUSDC and native USDC, to aid migration. As there is no benefit for liquidity providers to maintain a usable ratio of tokens, this would likely only be in use over a token’s transition period rather than a stableswap pool with a small swap fee.
Compiler Version: cosmwasm/workspace-optimizer:0.14.0
Commit ID: 1d7e32d3f3e83db5ecb3b3f7b8b8961a6787d515
On Chain date: 28th August 2023