Cosmos Stabletoken Liquidity Initiative (CSLI) status

Conversation Proposal updates
1

Cosmos Stabletoken Liquidity Initiative (CSLI)

Also known as Cosmos Hub Proposals 899 and 912

Proposal summary

  • This proposal allocates 4% of the Cosmos Community Pool’s idle ATOM to liquid staking on Stride and Persistence.
  • Initially 188,768 ATOM will be transferred, with an additional 6% in the next quarter, totaling approximately 10% of the Community Pool.
  • The staked assets will be managed by a multisig, with an estimated increase in capital efficiency of 18% on the original ATOM.

Milestones Completed:

  • Proposal passes, funds transfered to multisig cosmos18d3gg43rlrmudvcdrgdects3v5cd3w6ds7646v
  • Multisig wallets setup on
    • Persistence persistence18d3gg43rlrmudvcdrgdects3v5cd3w6d7jux5g
    • Stride stride18d3gg43rlrmudvcdrgdects3v5cd3w6dn46fwq
  • ATOM staked
  • IBC tokens to Agoric
    • 125,046.19 stATOM IBC transferred to Agoric chain
    • 14,731.72 stkATOM IBC transferred to Agoric chain

Milestones to do:

  • Open Inter Protocol Vaults
    • stATOM
    • stkATOM
  • Mint IST from Inter Protocol Vaults
    • stATOM
    • stkATOM
  • Move IST to DEXes
    • Osmosis
    • Astroport
    • Shade
    • Quasar
  • Swap IST for USDC on Osmosis
  • IBC USDC to DEXes
    • Astroport
    • Shade
    • Quasar
  • Swap USDC for SILK
  • Add liquidity to pools:
    • 30% to Osmosis IST/USDC Concentrated Liquidity pool
    • 25% to Astroport IST/USDC.nbl pool
    • 25% to a Quasar IST/USDC vault
    • 20% to Shade IST/SILK pool

Join the converstation on the Agoric community forums.

2

how is the promised 18% increase in capital efficiency measured?

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3

This is measured by the combination of yield sources on the ATOM and IST generated by this strategy:

  1. staking rewards

  2. rewards from trading fees on each LP pool on a Dex and

  3. any additional incentives activated on the pools.

4

You’ve given a similar non-answer before:

But what mathematical and logical steps do you actually take to reach your conclusions? It’s all very vague, it’s like reading marketing copy instead of a sober analysis of risks and rewards.

Boosting the most decentralized and established stablecoin in the Cosmos ecosystem is a great public good but can we be extremely specific about the numbers involved? ATOM staking rewards appear to be the vast majority of the ‘profit’ and the Community Pool already has plenty of ATOM in it.

  1. Exactly what numbers do you start with, and how exactly do they lead to the conclusion you reached? What is the exact breakdown of ATOM, IST, USDC, and SILK you expect to gain, if all goes as expected?

  2. What is the expected size of the IST debt at the end of a year?

  3. What if the price of SILK goes down and you experience impermanent loss?

  4. What backup plan do you have if things don’t go as expected and you can’t pay off the IST loans at the end of a year?

1 Like