Prop 436: Whitelist Apollo Vaults for USDC and ATOM

This proposal whitelists the Apollo Vault addresses for OSMO/ATOM and OSMO/USDC for ForceUnlocking, enabling them to bypass bonding periods for assets contained within.

What are Vaults?

Vaults are a key piece of infrastructure required to enable leveraged yield farming on Osmosis.

Vaults allow users to deposit tokens to be managed by a protocol and enable access to yield strategies offered by that protocol.

The first such strategy is Apollo's Leveraged Liquidity Provision, launching in conjuction with Mars Protocol.

Leveraged Liquidity Positions require depositing assets into a vault which then provides liquidity on a user's behalf. These assets may then be used as collateral via Mars' Rover Credit Accounts to increase the value of the liquidity provided. The vault also auto-compounds rewards into the pool to maximise yield.

In the event of the pool's value dropping below a declared safety threshold and the position being liquidated, the collateralised assets within the vault are required to be automatically sold. As these assets will be locked in order to receive liquidity incentives this is not possible without allowing the vault addresses to directly bypass this restriction and unlock assets immediately rather than waiting for the bonding period to pass.

Apollo LP Vaults have been audited by Oak Security and the audit report can be found here.

Implementation

This proposal directly whitelists two addresses to be able to bypass bonding periods for assets contained within them.

These addresses are the deposit addresses for the following vaults:

• OSMO/ATOM (#1) (14 Day Bonding) - osmo1g3kmqpp8608szfp0pdag3r6z85npph7wmccat8lgl3mp407kv73qlj7qwp
• OSMO/USDC (#678) (14 Day Bonding) - osmo1jfmwayj8jqp9tfy4v4eks5c2jpnqdumn8x8xvfllng0wfes770qqp7jl4j

About Apollo

Apollo DAO is a collective of CosmWasm developers and DeFi natives that focuses on building DAO tooling and asset management for the Cosmos ecosystem. Website: https://apollo.farm/