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Osmosis

#1047

PASSED

Remove USDY and wstETH from the Community Pool Denom Whitelist

Proposal Type: Parameter Change

Submitted On:

September 28, 2026 at 11:59 AM

Deposit:

30,000 OSMO

Proposal Contents (*the original text from the proposer)

This proposal removes two assets from the list the community pool accumulates from taker fees. Both are being wound down by teams that support them within Cosmos.

  • USDY (Ondo US Dollar Yield)
  • wstETH (Lido wrapped staked ETH via Neutron)

Background

The community pool taker-fee whitelist was established in Proposal 965 and last set in Proposal 1039. Whitelisted assets are accumulated in the community pool. Any other non-OSMO taker fees are swapped to the default denomination, currently BTC.

Proposal 1026 removed USDN from this whitelist after Noble placed USDN into maintenance mode, so that the community pool stopped accumulating a deprecated asset. This proposal applies the same reasoning to two further assets.

USDY

Ondo has announced that it stopped minting USDY on Noble on 8 September 2026 (Ondo announcement, @Ondo, September 4 2026). USDY on Osmosis is bridged from Noble, so it is affected by the same wind-down. Ondo has set out two exit paths:

  • Holders of 1,000 USDY or more can bridge back to Noble and redeem with Ondo at NAV, or move to another supported network, until 8 September 2027.
  • Holders of less than 1,000 USDY can exit through third-party liquidity on Osmosis during a transition period ending 7 December 2026.

wstETH

wstETH on Osmosis is bridged through the canonical interchain wstETH contracts on Neutron. As part of Neutron's transition to long-term support (Neutron announcement, @neutron_org, March 16 2026), Hadron Labs maintained these contracts and their interfaces until 30 June 2026, and their stability is not guaranteed beyond that date. Holders are advised to bridge wstETH back to Ethereum (withdrawal guide).

Proposed Change

Update the whitelist to drop:

  • ibc/23104D411A6EB6031FA92FB75F227422B84989969E91DCAD56A535DD7FF0A373 (USDY)
  • ibc/2F21E6D4271DE3F561F20A02CD541DAF7405B1E9CB3B9B07E3C2AC7D8A4338A5 (wstETH)

The other five whitelisted denoms are retained unchanged:

SymbolDenom
USDCfactory/osmo147h5x9pcj7lm0cttlaefx6sqq5vdfnmwfcqxkmjd7exqm9gc7grqhr75m0/alloyed/allUSDC
USDTfactory/osmo1em6xs47hd82806f5cxgyufguxrrc7l0aqx7nzzptjuqgswczk8csavdxek/alloyed/allUSDT
BTCfactory/osmo1z6r6qdknhgsc0zeracktgpcxf43j6sekq07nw8sxduc9lg0qjjlqfu25e3/alloyed/allBTC
ETHfactory/osmo1k6c8jln7ejuqwtqmay3yvzrg3kueaczl96pk067ldg8u835w0yhsw27twm/alloyed/allETH
SOLfactory/osmo1n3n75av8awcnw4jl62n3l48e6e4sxqmaf97w5ua6ddu4s475q5qq9udvx4/alloyed/allSOL

Impact

After this proposal executes, any USDY or wstETH arriving in the community pool's share of taker fees is swapped to the default denomination (currently BTC) instead of being accumulated. Taker fee revenue in the other five whitelisted assets is unaffected.

Forum Post: https://forum.osmosis.zone/t/remove-usdy-and-wsteth-from-the-community-pool-denom-whitelist/4130

Voting Results

Status: Quorum Met
(60.68% of the required 30.00%)
Tokens Voted
108,827,652
Yes
95,988,409
88.2%
No
2,522
0.0%
No With Veto
1,054
0.0%
Abstain
12,835,667
11.8%

Vox Populi

Community discussions related to the proposal.

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