osmosis

Prop 807: Restrict Superfluid pools to a core set of pairings

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