Prop 431: Signaling Proposal - Define New Stable Asset: IST and incentivize stable swap pool DAI / CMST / IST with OSMO rewards
Signaling Proposal - Define New Stable Asset: IST and incentivize stable swap pool DAI / CMST / IST with OSMO rewards
Part 1: Recognize IST as a Stable asset, a Stabletoken
This proposal would recognize IST as a Stabletoken asset on Osmosis.
Details
Stablecoins backed by fiat assets are under regulatory scrutiny. There are stable assets that are still pegged to fiat currencies, but are backed by on-chain cryptocurrencies instead of off-chain regulated fiat assets. Throughout this proposal the distinction between the two are defined as:
Stablecoin - (1) A cryptocurrency designed to maintain parity with another asset, usually an off-chain asset or fiat currency, such as US Dollar. (2) Stablecoins are a type of cryptocurrency that is designed to maintain a stable value, unlike most other cryptocurrencies which are known for their volatility. This is achieved by pegging the value of the stablecoin to a stable asset, such as the US dollar. This makes stablecoins useful for transactions and payments, as they provide the benefits of cryptocurrencies (such as fast, secure, and borderless transactions) without the volatility that can make other cryptocurrencies difficult to use as a reliable store of value.
Stabletoken - A class of stablecoins that are backed with primarily on-chain cryptocurrency assets rather than off-chain assets.
The use of Stabletoken is encouraged to differentiate between stable currencies that are backed by off-chain regulated assets vs on-chain assets.
Proposal 233 defined Stablecoins (and therefore the class Stabletokens) as an asset type to be used in the incentive category structure. Assets defined as Stablecoins/Stabletokens are currently eligible for:
Access to the Osmo/Stable Category for their incentivized pools Access to the Stable/Stable Category for their incentivized pools Automatic matching of External incentives within the Stable/Stable Category as per Proposal 377
Part 1 of this proposal established IST as a Stablecoin/Stabletoken asset on Osmosis.
Voting
- By voting YES on this proposal, IST will be recognized on Osmosis as a Stabletoken.
- By voting NO on this proposal, IST's status will remain unchanged
About IST
IST is currently the largest native Cosmos circulating Stabletoken with over $1.8M minted.
It is currently mintable via the Inter Protocol parity stability module from USDC, USDT or DAI and will be mintable later this year from volatile assets, such as ATOM. Exchanges that list IST include Crescent and Osmosis with more coming online every monthly. As a native Cosmos Stabletoken, it is not a bridged asset and once minted on the Agoric chain, can be used by any and all of the IBC zones.
Website: https://inter.trade/
Part 2: Enable OSMO incentive for core StableSwap pool DAI / CMST / IST
Part 2 of this proposal recognzes the StableSwap 3 pool of DAI / CMST / IST as a core StableSwap pool and enables OSMO incentives at the next routine incentives proposal. This is a signaling proposal to include the StableSwap 4 pool DAI / CMST / IST into the set of pools that receive OSMO liquidity incentives by recognising it as a core StableSwap pool. After this proposal has passed governance, the pool will be added to the regular incentives program of OSMO and receive incentives as a Stable/Stable pool. The pool incentivised at this time would be Pool 908 with IST & CMST being native Cosmos stable tokens and DAI & USDC provided via the Axelar bridge and as such are the canonical representations of these on Osmosis according to Proposal 206. If the canonical status of one of these assets is changed then incentives would move at the next routine proposal to the pool containing the new canonical assets, with the highest volume and matching the criteria stated in Proposal 377. Stable pools are incentivised by the model defined in Proposal 377. In brief, incentivised pools receive a subsidy of up to 2 times the value of fees generated in the pool in OSMO, with the total of the Stable/Stable category being capped as 4% of current Liquidity Provider emissions.
Voting
- By voting YES on this proposal, the Stable Swap 3 pool of DAI / CMST / IST will be added to the regular incentives program of OSMO and receive incentives as a Stable/Stable pool.
- By voting NO on this proposal, the pool will not be incentivized.
About DAI
DAI is a Stablecoin cryptocurrency on the Ethereum blockchain generated by MakerDAO. The current version of DAI in use on Osmosis arrives from Ethereum via the Axelar bridge.
About CMST
Composite - $CMST, a fully collateralized, IBC-enabled stablecoin, is built to bring liquidity to Cosmosassets and power DeFi on Cosmos.
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