Proposal #608

Upload stToken Scaling Factor Auto-update Contract

Exec Legacy Content
passed
Expected result
Passed
Turnout / Quorum
86.93% / 20.00%

Voting period

Voting ended100.0%
Voting start 2023.08.31 at 22:10:26
Voting end 2023.09.05 at 22:10:26

Vote distribution

96.28%
173 517 193 osmo
Yes
0.00%
294 osmo
No
0%
0 osmo
Veto
3.72%
6 695 495 osmo
Abstain

Details

logo
Proposer
-
Total deposit
1 600 osmo
Submit time
2023.08.31 at 22:10:26
Deposit end time
2023.09.14 at 22:10:26

Description

Passing this proposal will upload the stToken Scaling Factor Auto-update Contract to the Osmosis chain \n\n ## Summary \n\n The stToken Scaling Factor Auto-update Contract makes use of the Stride Redemption Rate Oracle Contract to automatically update the scaling factor for stToken stableswap pools, such as the stOSMO-OSMO pool. \n\n Currently, the scaling factor for stToken stableswap pools is updated every several days using a multisig address controlled by the Stride Association. By using the Auto-update Contract the Stride Association can relinquish this responsibility, which would thereafter be carried out in an automatic and fully trustless manner. \n\n ## Details \n\n Normal stableswap pools concentrate the two tokens at a 1:1 ratio, which is ideal for USD stablecoins. But Osmosis stableswap pools have an optional scaling factor, which enables the concentration ratio to be continually scaled. This scaling factor is utilized for stToken stableswap pools, because stTokens constantly appreciate in value against their underlying tokens. \n\n Currently, it is the responsibility of a Stride Association multisig address to gradually increase the concentration ratios on several stToken stableswap pools. But that process can now be automated. \n\n For example, the stOSMO:OSMO redemption rate is currently 1:1.148. Soon, the Stride Redemption Rate Oracle Contract could feed this redemption rate to Osmosis. Then the stToken Scaling Factor Auto-update Contract would take the stOSMO redemption rate and use it to adjust the scaling factor / concentration ratio on the stOSMO/OSMO stableswap pool. \n\n Note that once these two contracts are uploaded, a further governance proposal would be required for the Stride Association multisig to relinquish control of stToken pool scaling factors to the Auto-update Contract. \n\n ## Contract information \n\n Release: v1.0.0 \n\n Git Commit: 7e75ff9e92755a4ad284a8f07b332f4d5b444062 \n\n Code repository: https://github.com/Stride-Labs/st-scaling-factor \n\n Compiler: cosmwasm/rust-optimizer:0.12.13 \n\n Checksum: 57f5ec7f8e2848d53e8164c80272cdff311cc844c70d0b15b71712cbc2ec034c \n\n Forum Thread: https://forum.osmosis.zone/t/upload-sttoken-scaling-factor-auto-update-contract/249 \n\n

Votes

Voter
Answer