Prop 175: Off-Chain Routes in Swapper - Osmosis Outpost

mrc: 81 title: Off-Chain Routes in Swapper - Osmosis Outpost authors: Mars Foundation forum-url: https://forum.marsprotocol.io/t/1225

Summary

The objective of this proposal is to upgrade the Credit Manager, Swapper, and Rewards Collector contracts on Osmosis. The current implementation for swapping assets relies on static routes provided during governance, which poses challenges due to suboptimal liquidity utilization. Liquidity in pools can change dynamically, leading to potentially better swapping routes that are not accounted for in the static setup.

Motivation

The Swapper contract's main responsibilities include configuring routes for swapping assets and executing asset swaps. It is utilized by both the Credit Manager and Rewards Collector contracts. Presently, these contracts execute swaps using the Swapper contract, which employs predefined routes provided by governance.

The current implementation, which relies on static routes, is not efficient in continuously changing liquidity pools. There may arise situations where alternative routes could offer better returns for asset swaps, optimizing liquidity usage.

To address this issue, we propose allowing the provision of off-chain routes. The Credit Manager or Rewards Collector can pass route configurations to be used, enabling more dynamic and efficient asset swapping.

Risks

This change introduces smart contract code changes, the risk in making changes to the smart contracts are that while the code changes are minor, new bugs or unforeseen situations as a result of the changes can occur.

Implementation

This upgrade updates the logic in Swapper, Credit Manager and Rewards Collector.

The changes can be viewed in the release.

This is a signaling proposal, not an executable proposal.

The Mars smart contracts on the Osmosis chain are currently controlled by the Builder Multisig address. If this proposal passes, the builders will utilize their multisig to make the necessary parameter changes.

Copyright

Copyright and related rights waived via CC0.

Disclaimers/Disclosures

This proposal is being made by Delphi Labs Ltd., a British Virgin Islands limited company. Delphi Labs engages in incubation, investment, research and development relevant to multiple ecosystems and protocols, including the Mars Protocol. Delphi Labs and certain of its service providers and equity holders own MARS tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the “Delphi Digital” brand. Delphi Digital’s associated entities and/or equityholders or service providers of such entities may hold MARS and may have financial interests related to this proposal. All such entities, service providers, equity holders and other related persons may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Osmosis/OSMO and Celestia/TIA. Delphi Ventures, a related company, is an investor in rights to receive TIA. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.

This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.