Alloyed USDT: Add USDT.eth.atom

This proposal discusses adding USDT.eth.atom (USDT bridged to Osmosis from Ethereum via the Cosmos Hub's Eureka product) as a constituent of Alloyed USDT with an initial static limit of 20%.

Alloyed USDT

Alloyed USDT was recognized as the canonical USDT on Osmosis in Proposal 792.

It currently has around 1 million in supply on Osmosis, and consists of:

• USDT.axl (Axelar bridge from Ethereum) (75% Cap)
• USDT.kava (IBC from Kava EVM) (75% Cap)
• USDT.wh (Wormhole bridged from Ethereum) (75% Cap)
• USDT.pica (Picasso bridged from Solana) (40% Cap)
• USDT.inj (Injective Bridge from Ethereum) (75% Cap)
• USDT.rt (Router Bridge) (5% Cap)
• USDT.e.op.axl (Axelar bridge from Ethereum, via Optimism bridge) (20% Cap)
• USDT.e.arb.axl (Axelar bridge from Ethereum, via Arbitrum bridge) (20% Cap)
• USDT.e.matic.axl (Axelar bridge from Ethereum, via Polygon bridge) (20% Cap)

Proposed Change

This proposal requests that USDT.eth.atom be added to the existing USDT Alloy, enabling USDT deposits via Eureka.

This proposal adds an initial static rate limit of 20% (~$200k exposure) to bound risk to Alloyed USDT for a new variant on a newly deployed bridging product. This may be further expanded by governance as adoption grows and transfers occur without incident.

For a complete description of Alloyed Assets, see the Blog Post. To view all Alloyed Statistics, see the Alloyed Dashboard.

About Eureka

Eureka is the first major interoperability protocol built on IBC v2, a more efficient and transparent solution for cross-chain asset transfers.

Unlike traditional bridges, Eureka allows for permissionless, secure, and cost-effective asset transfers, bringing new liquidity into the Cosmos ecosystem via the Cosmos Hub and facilitating the expansion of multichain applications. Website: https://cosmos.network/ibc-eureka/

Forum Post: https://forum.osmosis.zone/t/alloyed-usdt-add-usdt-atom/3697

Parameters

Adds USDT.eth.atom - ibc/7BC2F718C47C0749791F2612A914C8C39D1A4F533A27AF7285D924D4B617DDA6 to allUSDT - osmo1em6xs47hd82806f5cxgyufguxrrc7l0aqx7nzzptjuqgswczk8csavdxek with a normalization factor of 1 due to the exponent of 6 which is standard for USDT transfers and verifiable by deposit. Static Limit of 20% to the same denom.