This proposal is concurrent with a proposal to make Alloyed BTC the canonical version of BTC on Osmosis. It sets the initial Static Rate Limits for the assets within allBTC.

Alloyed Assets have built-in rate limitation settings, which can prevent the ratio of tokens from changing excessively in a set period. These rate limits minimize any issue with one constituent from draining the liquidity of the paired assets in the alloy.

Static Rate Limits Determines the maximum percentage of the pool allowed to be a specific asset, preventing extreme imbalance from occurring and minimizing the exposure of the Alloyed Asset to a particular constituent.

This proposal sets the static rate limits for allBTC to:

• WBTC - 100%
• WBTC.eth.axl - 50%
• nBTC - 5%

Forum Thread: https://forum.osmosis.zone/t/alloyed-asset-btc/3001