This proposal removes superfluid staking on the majority of pools in order to encourage the further migration of liquidity to Supercharged pools as well as align Osmosis security with a minimal selection of core assets.

Superfluid

Superfluid Staking allows a portion of the value within a pool to be staked to secure the Osmosis chain. Approximately 14.3M OSMO are currently staked through superfluid staking, comprising 3.8% of staking security.

Governance has previously preferred that any sizeable OSMO paired pool be added to Superfluid staking to increase the security of the chain and rewards for those pools. Due to the low level of Superfluid usage, OSMO currently receives minimal security benefit from this while maintaining the old standard of 14-day bonding in liquidity pools and encouraging the use of OSMO pairings.

This proposal reviews the current set of Superfluid-enabled pools and would reduce them to a core set due to observed changes in community preference and liquidity provider behavior.

Superfluid Enabled Pools (73)

Pool ID	Quote	Base	TVL	Fees	Pool Type
1	OSMO	ATOM	7,837,608	0.20%	Classic
833	OSMO	stOSMO	7,294,090	0.30%	Classic
1135	OSMO	ATOM	4,269,943	0.20%	Supercharged
1093	OSMO	AKT	2,420,588	0.20%	Supercharged
1134	OSMO	ETH	2,086,815	0.20%	Supercharged
712	OSMO	WBTC.axl	1,432,587	0.20%	Classic
1090	OSMO	WBTC.axl	1,371,530	0.20%	Supercharged
704	OSMO	ETH	1,315,333	0.20%	Classic
812	OSMO	AXL	1,161,446	0.20%	Classic
678	OSMO	USDC.axl	855,832	0.20%	Classic
1133	OSMO	USDC.axl	789,423	0.20%	Supercharged
1248	OSMO	TIA	730,726	0.20%	Supercharged
681	OSMO	FET	703,386	0.30%	Classic
1094	OSMO	AXL	628,258	0.20%	Supercharged
3	OSMO	AKT	475,727	0.20%	Classic
9	OSMO	CRO	418,664	0.20%	Classic
1095	OSMO	SCRT	403,389	0.20%	Supercharged
725	OSMO	INJ	402,633	0.20%	Classic
1263	OSMO	USDC	378,981	0.05%	Supercharged
806	OSMO	STRD	375,094	0.20%	Classic
840	OSMO	BNB	351,195	0.20%	Classic
1096	OSMO	STARS	304,059	0.30%	Supercharged
584	OSMO	SCRT	262,285	0.20%	Classic
1098	OSMO	STRD	256,750	0.20%	Supercharged
722	OSMO	EVMOS	255,365	0.20%	Classic
1265	OSMO	ATOM	253,634	0.05%	Supercharged
1097	OSMO	JUNO	240,339	0.30%	Supercharged
1464	OSMO	USDC	234,961	0.01%	Supercharged
1092	OSMO	CRO	228,478	0.20%	Supercharged
604	OSMO	STARS	164,200	0.30%	Classic
497	OSMO	JUNO	156,536	0.30%	Classic
1400	OSMO	ATOM	142,634	0%	Supercharged
1104	OSMO	BLD	101,721	0.20%	Supercharged
1281	OSMO	ETH	93,897	0.05%	Supercharged
789	OSMO	MATIC	93,163	0.20%	Classic
674	OSMO	DAI	91,024	0.20%	Classic
1066	OSMO	DAI	87,562	0.20%	Supercharged
1399	OSMO	ATOM	73,762	0.01%	Supercharged
1077	OSMO	USDT	72,747	0.05%	Supercharged
899	OSMO	AVAX	72,554	0.20%	Classic
1103	OSMO	SOMM	72,232	0.20%	Supercharged
605	OSMO	HUAHUA	71,519	0.20%	Classic
1099	OSMO	MARS	70,761	0.20%	Supercharged
907	OSMO	MARS	67,175	0.20%	Classic
1111	OSMO	HUAHUA	65,977	0.20%	Supercharged
1221	OSMO	USDC	54,540	0.20%	Supercharged
42	OSMO	REGEN	49,799	0.20%	Classic
1101	OSMO	XPRT	44,192	0.20%	Supercharged
1088	OSMO	IST	43,531	0.20%	Supercharged
15	OSMO	XPRT	40,100	0.20%	Classic
1105	OSMO	KAVA	39,323	0.20%	Supercharged
1434	OSMO	WBTC	35,364	0.01%	Supercharged
900	OSMO	FTM	32,736	0.20%	Classic
1477	OSMO	ETH	32,254	0.01%	Supercharged
627	OSMO	SOMM	29,340	0.20%	Classic
1249	OSMO	TIA	28,047	0.20%	Classic
773	OSMO	moonbeam.DOT.axl	26,793	0.20%	Classic
1091	OSMO	moonbeam.DOT.axl	26,465	0.20%	Supercharged
1100	OSMO	ION	25,361	0.50%	Supercharged
837	OSMO	IST	13,069	0.20%	Classic
1011	OSMO	ARB	12,276	0.20%	Classic
463	OSMO	NGM	11,697	0.30%	Classic
831	OSMO	USDT.axl	11,373	0.20%	Classic
1013	OSMO	ION	9,683	0.50%	Classic
795	OSMO	BLD	9,676	0.20%	Classic
1347	OSMO	TIA	7,853	0.05%	Supercharged
730	OSMO	KAVA	6,477	0.20%	Classic
1433	OSMO	WBTC	4,917	0.05%	Supercharged
1430	OSMO	WBTC.axl	795	N/A	Supercharged
1432	OSMO	WBTC	49	N/A	Supercharged
1076	OSMO	USDT	31	N/A	Supercharged
1369	OSMO	USDC	22	N/A	Classic
1465	OSMO	USDT	15	N/A	Supercharged

Proposed Changes

Remove Non-Supercharged pools from Superfluid

This suggestion follows Proposal 774 where Osmosis incentives were removed from Classic pools.

With Supercharged pools being live for a year, active liquidity in Classic pools should have fully migrated and is likely to continue to exist without receiving the additional rewards from Superfluid staking.

This also includes the stOSMO/OSMO pool as a stableswap, which has been far outperformed by the stOSMO/OSMO Concentrated liquidity pool backed by protocol-owned liquidity. Superfluid positions in both of these pools underperform compared to staking but have the full bonding period.

Removing this set of pools will remove 35 pools from being Superfluid enabled, which will encourage active liquidity providers in Classic pools to migrate to equivalent or more concentrated positions within Supercharged pools.

Remove Non-Quote assets

This suggestion follows Proposal 638, which restricted incentives to a minimal list of assets, mostly quote assets at the time.

This concentrates the Superfluid provided security to current quote assets of:

• USDC via Noble
• DAI via Axelar
• WBTC issued on Osmosis
• WBTC via Axelar
• ETH via Axelar
• ATOM
• TIA

This removes 20 pools from being Superfluid enabled.

The main benefit is that minimizing emissions to these pools encourages liquidity to form alternative pairings, such as with USDC or BTC, which helps to diversify and strengthen the Osmosis ecosystem while having minimal impact on Osmosis security. This approach also helps to de-couple the performance of ecosystem tokens from OSMO itself, addressing a commonly raised concern by ecosystem participants and leaving the maintenance of these pairings entirely to liquidity provider preference of volatility expectations.

Proposed Superfluid Pools to Retain (18)

Pool ID	Quote	Base	TVL	Fees	Pool Type
1135	OSMO	ATOM	4,269,943	0.20%	Supercharged
1134	OSMO	ETH	2,086,815	0.20%	Supercharged
1090	OSMO	WBTC.axl	1,371,530	0.20%	Supercharged
1248	OSMO	TIA	730,726	0.20%	Supercharged
1263	OSMO	USDC	378,981	0.05%	Supercharged
1265	OSMO	ATOM	253,634	0.05%	Supercharged
1464	OSMO	USDC	234,961	0.01%	Supercharged
1400	OSMO	ATOM	142,634	0%	Supercharged
1281	OSMO	ETH	93,897	0.05%	Supercharged
1066	OSMO	DAI	87,562	0.20%	Supercharged
1399	OSMO	ATOM	73,762	0.01%	Supercharged
1221	OSMO	USDC	54,540	0.20%	Supercharged
1434	OSMO	WBTC	35,364	0.01%	Supercharged
1477	OSMO	ETH	32,254	0.01%	Supercharged
1347	OSMO	TIA	7,853	0.05%	Supercharged
1433	OSMO	WBTC	4,917	0.05%	Supercharged
1430	OSMO	WBTC.axl	795	0.01%	Supercharged
1432	OSMO	WBTC	49	0.20%	Supercharged

Forum Thread: https://forum.osmosis.zone/t/restrict-superfluid-pools-to-a-core-set-of-pairings/2884