Summary
This proposal has 2 objectives:
- Migrate the price source for AXL from the current TWAP based approach to Pyth. In a recently executed proposal we outlined why it was necessary to migrate most asset price sources from Osmosis TWAPs to Pyth. In this sense, the migration of AXL would be just a continuation of that process.
- Increase the AXL deposit cap from 200,000 AXL to 400,000 AXL. The current AXL cap of 200,000 AXL was quickly filled. This suggests that there’s additional demand to use the asset as collateral within the Red Bank. This proposal aims to meet that additional demand and increase organic usage of the Red Bank, while maintaining a conservative risk exposure to the asset, following our recently presented Deposit Caps Methodology.
Specification
Oracle Migration:
We propose to migrate from the current approach to Pyth as the price source for AXL as follows:
| Current Approach | Proposed Approach |
|---|---|
| AXL/USD = AXL/OSMO (TWAP) * OSMO/USD (Pyth) | AXL/USD = AXL/USD from Pyth |
Deposit Cap:
We ran AXL through our recently proposed Deposit Caps Methodology. The maximum cap suggested for AXL is 600,000 AXL. As such, we believe that 400,000 AXL is still a conservative cap for the token. For a more detailed understanding of the most recent caps calculation check this forum post.
Implementation
This is a signaling proposal, not an executable proposal.
The Mars smart contracts on the Osmosis chain are currently controlled by the Builder Multisig address. If this proposal passes, the builders will utilize their multisig to make the necessary changes.
Copyright
Copyright and related rights waived via CC0.
Disclaimers/Disclosures
This proposal is being made by Delphi Labs Ltd., a British Virgin Islands limited company. Delphi Labs engages in incubation, investment, research and development relevant to multiple ecosystems and protocols, including the Mars Protocol. Delphi Labs and certain of its service providers and equity holders own MARS tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the “Delphi Digital” brand. Delphi Digital’s associated entities and/or equityholders or service providers of such entities may hold MARS and may have financial interests related to this proposal. All such entities, service providers, equity holders and other related persons may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Osmosis/OSMO. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.
This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.