This proposal removes superfluid staking from all pools and approves the removal of the Superfluid functionality in a future software upgrade.

Superfluid Staking

Superfluid Staking allows a portion of the value within a pool to be staked to secure the Osmosis chain. The set of pools available for this functionality was last modified in Proposal 807 to only include OSMO pairings with core assets in line with the OSMO decoupling initiative and encouraging the migration of passive liquidity to form a base for Supercharged liquidity pools.

In the 11 months since this change was implemented, the uptake of this set of Superfluid pools has been poor, with only 39k OSMO currently being staked through Superfluid staking, 0.011% of staking security.

This may be due to Superfluid only being available on passive positions, which may be less competitive than newer strategies that offer similar passivity but higher yield.

Proposed Change

As part of an ongoing project to unfork Osmosis from the mainline Cosmos SDK to reduce maintenance complexity, this proposal asks that the x/Superfluid module be deprecated in a future software upgrade.

Doing this will return Osmosis staking mechanisms to the Cosmos SDK standard, reducing the complexity of further chain upgrades and reducing the security surface of any further changes to the staking system, such as the implementation of the Bitcoin Secured Network module and contracts.

As a preparatory step, this proposal removes Superfluid staking from all currently approved pools to simplify future software upgrades. As with previous proposals that adjusted the set of Superfluid pools, users using this feature will be unbonded on the parameter change completing.

Pools Impacted

Pool ID	Quote	Base	Fees	TVL
1464	OSMO	USDC	0.01%	347,339
1995	OSMO	BTC	0.20%	212,152
1400	OSMO	USDC	0.05%	99,846
1281	OSMO	USDC	0.2%	8,825
1996	OSMO	ETH	0.20%	2,601
2337	OSMO	SOL	0.20%	1,278
1263	OSMO	USDT	0.05%	44
1248	OSMO	USDT	0.20%	4
1265	OSMO	USDT	0.01%	1

Forum Thread: https://forum.osmosis.zone/t/remove-superfluid-staking-and-deprecate-the-x-superfluid-module/3767