Cosmos Hub

Infrastructure

Proposal Details

Proposal #956

Rejected

Proposal title

Update the Hub’s stATOM/ATOM POL position on Osmosis 

Submit time

Deposit end time

Voting start time

Voting end time

Tally result

76.65%

Proposal #956 description

Summary

As stATOM redemption rate continuously increases (currently at 1.415 ATOM which surpasses the upper bound of the initial range), the POL position is currently out of range and not earning any swap fees.

This proposal seeks to:

  • update the liquidity range for the Hub’s POL of stATOM/ATOM on Osmosis from the previously set range of [1.0, 1.35] to a new range of [1.1, 1.45].
  • Increase the amount deployed via Quasar from 90K ATOM to 210K ATOM by adding 120K ATOM.
  • Give the custodians of the position the power to update the position in the future if it goes out of range again.

These changes aim to ensure the efficiency of the Hub’s liquidity in the pool.

Link to the full discussions in the forum: https://forum.cosmos.network/t/last-call-proposal-updating-the-hubs-statom-atom-pol-on-osmosis/14273

Background

In the original proposal #858, the Cosmos Hub community approved the allocation of 900k ATOM to provide liquidity in the stATOM/ATOM pool on Osmosis, with 90% of this liquidity placed within a static range of [1.0, 1.35]. This range was chosen to provide liquidity mostly below the redemption rate of stATOM, which at the time was 1.228. The rationale behind the initial range was that liquidity is more effective below the redemption rate. However, a buffer above the redemption rate was included to accommodate the continuous increase.

Rationale

As of now, the redemption rate of stATOM has increased to 1.415 ATOM and surpassed the position’s upper range of 1.35. Making the position Out Of Range, which means all assets parked in the pool are in $ATOM ( approx 811,060 $ATOM) and not earning any fees from swaps. Meanwhile, the amount deployed via Quasar has generated almost as much revenue while only representing 10% of the total POL deployed.

To address this, we propose:

  • Increasing the liquidity deployed via Quasar to a total of 210K $ATOM

    This will allow the Hub to increase its revenues while minimising its exposure to $stATOM. → Note: Deployment via the Quasar vault incurs a 20% performance fee ( applied only to accrued revenue and not the principal).

  • Adjusting the range of the remaining liquidity to [1.1, 1.45]:

    This range will accommodate for the rate increase, maintain most of the liquidity below Stride’s redemption rate all while earning swap fees for the Hub’s liquidity.

  • Give the POL’s custodians the power to update the the position if it goes out of range again:

    This will make sure the position never stays Out Of Range by allowing the custodians to move quickly and eliminating the waiting period of 28 days ( at least) of waiting period associated with governance. → Note: This power only concerns performing updates to the range when it’s out. It doesn’t allow any other updates, such as increasing the amount deployed via Quasar for ex… → Note: For records sake, Johnny Wyles will update the community about these updates if/ when they happen by commenting on this discussion/ the initial discussion.

    Proposed Implementation

    The position is managed by a 3/5 multisig on Osmosis with Zaki Manian, Valentin Pletnev, Joni Z, Masha and Johnny Wyles as signers.

    If the proposal passes, signers will have the discretion to implement the suggested changes in order to maximise safety and avoid any sort of market manipulation.

    This is in regard to the timeline, number of transaction and size when performing the updates suggested.

    Note: Plans to re-route POL deployments through Hydro are currently being voted on. In case the plans are finalized before a favourable outcome to this proposal, the implementation of this proposal will be managed by the Hydro committee.

    Voting Options

    • Yes: You’re in favour of updating the liquidity range to [1.1, 1.45].
    • No: You’re against updating the liquidity range to [1.1, 1.45].
    • Abstain: You’re neither for nor against but wish to contribute to quorum.
    • No with Veto: Strongly oppose the proposal and deem it a spam, harmful to the Hub.

Proposal #956 overview

Total votes
22,240
Voters
21,986
Total deposit
250 ATOM

Proposal #956 votes

#

Validator

Account Address

Options
1BigBrainStakingNo
2Stakewolle.com |100% InsuranceNo
3Informal SystemsNo
4StakeflowAbstain
5Ztake.orgNo
6CrosnestYes (0%), Abstain (0%), No (0%), No With Veto (0%)
7Virtual HiveNo
8EverstakeNo
90base.vcNo
10AllnodesNo
11DSRVNo
12genznodesNo
13HuginnNo
14StakecitoNo
15S16 Research VenturesNo
16TessellatedNo
17CrowdControlNo
18ShapeShift DAONo
19ChainflowNo
20TeeNodeNo
21PRYZM | StakeDropNo
22StakeLab.zoneNo
23Vitwit (Previously Witval)No
24BlockdaemonNo
25✅ CryptoCrew Validators 🏆 Winner #GameOfChainsNo
26SygnumNo
27CosmostationNo
28NodeStake | LottoDropNo
29🐱biglazycat.comNo
30IcyCRO 🧊No
31Ubik CapitalNo
32Bro_n_BroNo
33Citizen Web3No
34GAMENo
35BlueStake 🚀No
36node101No With Veto
37ZKVNo
38NansenNo
39Inu XNo
40Umbrella ☔Yes
41Kintsugi NodesNo
42DragonStakeNo
43IRISNETNo
44🛡️Bunkerstake.ioNo
45BlockPIYes
46Cypher CoreAbstain
47PUPMØSNo
48CroutonDigitalNo With Veto
49TTT VNNo
50Stake&Relax 🦥No
51Stakely.ioNo
52ECO Stake 🌱No
53HighStakes.ch | Daily AirdropsNo
54blockscapeAbstain
55WeStakingNo
56🇨🇭 Vortex.live 🟢Abstain
57Simply StakingNo
5801nodeAbstain
59a41No
60AmplifierNo
61KeplrNo
62Blocks United | blocksunited.comNo
63Coinage x DAICNo
64Architect NodesAbstain
65POSTHUMAN 🧬 StakeDropNo
66Leap WalletNo
67Smart Stake 📈📊No
68#decentralizehk - DHK daoNo
69KalpaTechNo
70FreshSTAKINGNo
71CryptoDungeonAbstain
72CEX.IO ValidatorAbstain
73Swiss StakingNo
74Node GuardiansNo
75KahunaAbstain
76Citadel.oneNo
77Chill ValidationNo
78cosmosrescueNo
79Silk NodesNo
80StirNo
81TerraBitcoin ClubNo
82PRO DelegatorsNo
83GATA HUBNo
84🐹 Quokka StakeNo
85Imperator.coNo
86stake.systems | autocompoundYes
87Lavender.Five Nodes 🐝Abstain
88MeriaYes
89KilnAbstain
90w3coinsAbstain
91EnigmaAbstain
92Chorus OneAbstain
93Nodes.GuruAbstain
94vido.infoYes
95Frens (🤝,🤝)Abstain
96Cosmic Validator | 100% Uptime & Auto-compoundAbstain
97in3s.comNo
98hashtowerAbstain
99MoonletAbstain
100StakinAbstain

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