osmosis icon indicating copy to clipboard operation
osmosis copied to clipboard

Osmosis taker fees to acquire more BTC for liquidity provisioning - [Proposal 881]

Open JohnnyWyles opened this issue 11 months ago • 0 comments

Background

This issue requests the implementation of Proposal 881 - Osmosis taker fees to acquire more BTC for liquidity provisioning

This proposal suggests that we change the community pool's allocation of non-OSMO taker fees ... To instead be: 45% to stakers (via Osmo purchases) 30% to community pool (in-kind or USDC) 25% to community pool (buying BTC)

Upon code update, make the distribution, 45%, 30%, 25% as listed above, with the BTC buys happening once a day at epoch.

Suggested Design

This should utilize the epoch conversion mechanism that currently converts non-OSMO assets to OSMO before sending to stakers, to instead convert non-OSMO assets to BTC before sending BTC to the community pool.

The parameters to be added are in the Poolmanager module:

"non_osmo_taker_fee_distribution": {
        "staking_rewards": "0.450000000000000000",
        "community_pool": "0.550000000000000000"
      },

The minimum would be a parameter such as "asset_accumulation" that is hardcoded to BTC factory/osmo1z6r6qdknhgsc0zeracktgpcxf43j6sekq07nw8sxduc9lg0qjjlqfu25e3/alloyed/allBTC

To future-proof this, it should look for another parameter composed of percentage and denom pairings in case the denom of BTC changes or additional assets are to be added - this could then be a form of automated treasury management for Osmosis.

Something like:

"non_osmo_taker_fee_distribution": {
        "staking_rewards": "0.450000000000000000",
        "community_pool": "0.550000000000000000"
        "asset_accumulation":0.250000000000000000"
      },
"desired_assets":{
        "factory/osmo1z6r6qdknhgsc0zeracktgpcxf43j6sekq07nw8sxduc9lg0qjjlqfu25e3/alloyed/allBTC","1.000000000000000000"
}

Acceptance Criteria

25% of the non-OSMO assets collected by the community pool are converted into BTC at epoch and sent to the community pool.

JohnnyWyles avatar Dec 31 '24 09:12 JohnnyWyles