*** Authorize Indexer Performance Upgrade v1.6.1 • Injective Protocol • 0h 0m left *** Security validation for InjHub proposal rendering • Injective Protocol • 0h 0m left *** Migrate ServiceRegistry contract • Axelar Network • 0h 0m left *** Update Oracle Feeds to Pyth Pro for Various Perpetual Markets on Injective Exchange dApps Batch 2 • Stargaze • 0h 0m left *** Allow axelar14vps3ev03zyp2wmj89etx8rrxdxyltfy4rzl5m to upload wasm code • Axelar Network • 0h 0m left *** Set instantiate_default_permission to AnyOfAddresses • Axelar Network • 0h 0m left *** Allow axelar14vps3ev03zyp2wmj89etx8rrxdxyltfy4rzl5m to upload wasm code • Axelar Network • 0h 0m left *** Signaling Proposal: Freeze Hacker Funds and Recustody to a Trusted Distributor at a Later Date • Axelar Network • 0h 0m left *** Recover expired IBC client 07-tendermint-1737 (Osmosis <> Gravity Bridge) • Osmosis • 0h 0m left *** Recover Quicksilver IBC client • Cosmos Hub • 10h 30m left *** Set Minimum Notional for FanPicks (PICKS) • Injective Protocol • 13h 33m left *** Store Bluechip factory.wasm (1 of 3) • Osmosis • 96h left
Osmosis Logo

Osmosis

#1021

PASSED

Withdraw qOSMO Liquidity for redemption

Proposal Type: Text (Signaling)

Proposal Contents (*the original text from the proposer)

Quicksilver recently suffered an incident in which a user was able to mint qATOM and qOSMO without depositing ATOM or OSMO. Quicksilver chain has been halted before this could be redeemed.

This proposal directs the withdrawal of the community pool's qOSMO/OSMO backing liquidity from the Margined Locust vault on Pool 1590 to the Osmosis Liquidity subDAO, so the recovered qOSMO can be redeemed for OSMO once the Quicksilver chain resumes.

The qOSMO backing position, originally established in Proposal 770 and migrated into a Locust vault in Proposal 845, is now fully out of range. The Pool 1590 position holds approximately 774,098 qOSMO. Quicksilver is currently halted, and there is minimal functional liquidity of qOSMO in pools, so qOSMO is neither tradeable at peg nor redeemable, and the backing liquidity no longer serves its purpose.

Rationale

  • The position is no longer functioning as backing liquidity: it is one-sided qOSMO and out of range, so it neither supports the qOSMO peg nor earns meaningful fees.
  • Removing this liquidity is required for redemption and the resolution of the Quicksilver incident.
  • Consolidating protocol qOSMO holdings under the Liquidity subDAO lets the subDAO manage redemption directly, returning this OSMO to the community pool.

Proposed actions

  1. Send community pool's shares of the margined-locust-lsd-vault-1590 vault (osmo18vk0rsu4qwzx74g9alu2f7x5zs99sluwkuh5wp70yed2ne4pmutqf9lvdu), to the Liquidity subDAO.
  2. Unwind the underlying CL positions in Pool 1590 and recover the underlying qOSMO.
  3. The recovered qOSMO is held by the Liquidity subDAO pending Quicksilver's resumption.
  4. Once Quicksilver resumes, the subDAO submits redemption requests and returns the resulting OSMO to the community pool.
  5. Any residual OSMO recovered alongside the qOSMO is returned to the community pool.

Forum Post: https://forum.osmosis.zone/t/withdraw-qosmo-liquidity-for-redemption/4058

Voting Results

Status: Quorum Met
(37.13% of the required 30.00%)
Tokens Voted
77,740,764
Yes
61,803,444
79.5%
No
5,881
0.0%
No With Veto
46
0.0%
Abstain
15,931,392
20.5%

Vox Populi

Community discussions related to the proposal.

There do not appear to be any discussions on this proposal at this time.