quasar

Prop 34: [Signaling Proposal] - Strategic Deprecation of OSMO PRO and ATOM PRO Vaults on Quasar

Proposal Summary

Through this governance post, we propose the deprecation of the initial series of Quasar vaults, known as “PRO” vaults, which are designed for non-concentrated liquidity pools on Osmosis, also referred to as LP vaults. Specifically, this deprecation will encompass the OSMO PRO and ATOM PRO Quasar vaults.

Details

The Quasar LP PRO vaults were instrumental during the foundational phase of Quasar, notably contributing to the development of Interchain Queries (ICQ) and Interchain Accounts (ICA). In collaboration with Polymer Labs and Strangelove Ventures, Quasar was pivotal in establishing a new, permissionless system for inter-blockchain information sharing, utilizing the IBC standard (Inter-Blockchain Communication).

However, in light of advancements within the ecosystem and prevailing market trends, it has become necessary to propose the deprecation of the Quasar LP PRO Vaults for the following reasons:

  1. Shift in Market Dynamics: The vault architecture of Quasar vaults has evolved significantly since the introduction of PRO vaults. The market has witnessed a macro shift towards concentrated-liquidity pools, which are now favored over traditional full-range liquidity pools. This shift has resulted in liquidity, incentives, swaps, and swap fees predominantly moving towards concentrated-liquidity pools, rendering the full-range liquidity model (AMM) less effective.

  2. Resource Optimization: Deprecating the PRO vaults allows Quasar Labs to reallocate development resources more effectively. By discontinuing these older vaults, the team can focus entirely on enhancing and expanding the concentrated liquidity (CL) Strategy vaults and new features that better support the Quasar, Osmosis, and broader Cosmos ecosystem. This shift in focus is not only more aligned with current market trends but also enables the development team to innovate new features.

  3. Strategic Alignment with Quasar 2.0 Vision: The deprecation is a preparatory step in the execution of the Quasar 2.0 vision, which includes more advanced features and integrations. Focusing on newer technologies and strategies that are in line with future visions will ensure that Quasar remains at the forefront of blockchain innovation.

  4. Efficiency in Operations: Managing multiple types of vaults, especially those that are becoming less relevant, can lead to operational inefficiencies. By streamlining the types of vaults offered, Quasar can improve its service delivery, enhance user experience, and reduce the complexity associated with maintaining outdated systems.

  5. Preparedness for Future Growth: As the blockchain and DeFi landscapes evolve, staying ahead requires adapting to new technologies and phasing out older ones that no longer serve the strategic or operational goals effectively. This proactive approach in vault management demonstrates Quasar's commitment to growth and scalability.

These reasons collectively support the rationale for deprecating the Quasar PRO vaults, aligning with strategic, operational, and market considerations that will benefit Quasar’s user community and the continuous development on the Quasar 2.0 vision.

Specifications

The proposed deprecation process will include an automatic unbonding of the residual funds remaining in the OSMO PRO and ATOM PRO vaults. This unbonding process spans 14 days, consistent with the staking unbond duration on Osmosis. Subsequently, an automatic withdrawal will be executed, returning the user tokens to their respective Quasar addresses. Users will retain the ability to manually unbond and/or withdraw their funds before this automated process initiates.

The deprecation will proceed through a structured, multi-step process outlined as follows:

  • T-7 days: Submission of this proposal on the Quasar governance forum.

  • T-3 days: Submission of this proposal as a text proposal on the Quasar chain.

  • T+0 days: Initiation of an automatic unbonding for all remaining funds in the ATOM PRO vault, marking the start of a 14-day unbonding period. During this period, no new deposits will be accepted.

  • T+7 days: Initiation of an automatic unbonding for all remaining funds in the OSMO PRO vault, marking the start of a 14-day unbonding period. During this period, no new deposits will be accepted.

  • T+14 days: Completion of the unbonding period for the ATOM PRO vault. From this point, users may withdraw their funds from the vault. All users who do not manually withdraw their funds will automatically have their funds transferred to their respective wallets upon the vault's deprecation. The vault will be removed from the Quasar application frontend.

  • T+21 days: Completion of the unbonding period for the OSMO PRO vault. From this point, users may withdraw their funds from the vault. All users who do not manually withdraw their funds will automatically have their funds transferred to their respective wallets upon the vault's deprecation. The vault will be removed from the Quasar application frontend.