This proposal whitelists the Apollo Vault addresses for OSMO/WBTC and OSMO/WETH for ForceUnlocking, enabling liquidation events to bypass bonding periods for assets contained within.

What are Vaults?

Vaults are a key piece of infrastructure required to enable leveraged yield farming on Osmosis.

Vaults allow users to deposit tokens to be managed by a protocol and enable access to yield strategies offered by that protocol.

Leveraged Liquidity Positions require depositing assets into a vault which then provides liquidity on a user's behalf. These assets may then be used as collateral via Mars' Rover Credit Accounts to increase the value of the liquidity provided. The vault also auto-compounds rewards into the pool to maximise yield.

In the event of the pool's value dropping below a declared safety threshold and the position being liquidated, the collateralised assets within the vault are required to be automatically sold. As these assets will be locked in order to receive liquidity incentives this is not possible without allowing the vault addresses to directly bypass this restriction and unlock assets immediately rather than waiting for the bonding period to pass.

Apollo LP Vaults have been audited by Oak Security and the audit report can be found here.

Implementation

This proposal directly whitelists the address to be able to bypass bonding periods for assets contained within them, enabling the liquidation of over-leveraged deposits.

• OSMO/WBTC (14 Day Bonding) - osmo185gqewrlde8vrqw7j8lpad67v8jfrx9u7770k9q87tqqecctp5tq50wt2c

• OSMO/ETH (14 Day Bonding) - osmo1r235f4tdkwrsnj3mdm9hf647l754y6g6xsmz0nas5r4vr5tda3qsgtftef

This proposal transaction includes the previous addresses authorised in Proposal 436 and Proposal 451 for the following vaults to ensure continued functionality.

• OSMO/ATOM (#1) (14 Day Bonding) - osmo1g3kmqpp8608szfp0pdag3r6z85npph7wmccat8lgl3mp407kv73qlj7qwp
• OSMO/USDC (#678) (14 Day Bonding) - osmo1jfmwayj8jqp9tfy4v4eks5c2jpnqdumn8x8xvfllng0wfes770qqp7jl4j
• stATOM/ATOM (14 Day Bonding) - osmo1a6tcf60pyz8qq2n532dzcs7s7sj8klcmra04tvaqympzcvxqg9esn7xz7l

About Apollo

Apollo DAO is a collective of CosmWasm developers and DeFi natives that focuses on building DAO tooling and asset management for the Cosmos ecosystem.

Website: https://apollo.farm/