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Update-Pool-Incentives Description field error #1888

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JohnnyWyles opened this issue Jun 28, 2022 · 5 comments · Fixed by #2086
Closed

Update-Pool-Incentives Description field error #1888

JohnnyWyles opened this issue Jun 28, 2022 · 5 comments · Fixed by #2086
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@JohnnyWyles
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System information

Osmosis version: 10.0.1
OS & Version: Linux
Commit hash: e2217dd

Expected behaviour

Update-Pool-Incentives proposal submission to change Community Pool gauge (0) to 25000000.

Actual behaviour

Proposal description is lost, flags are no longer available on v10.0.1 so json proposal used instead. Json proposal has the deposit info read as the description.
image

Steps to reproduce the behaviour

osmosisd tx gov submit-proposal update-pool-incentives 0 25000000 --proposal=ReduceEmissions.json --from=osmo19mywfjzj324w5ukf7ss6jak0dg9hnljfp0rfx4 --gas=1000000 --fees="2500uosmo" --node="https://testnet-rpc.osmosis.zone:443" --chain-id="osmo-test-4"

ReduceEmissions.Json

{
   "title": "Continued reduction of emissions to Liquidity Pools",
   "description": "* Voting Yes for this proposal indicates approval that 20% of Osmosis inflation allocated to Liquidity Incentives should be redirected to the community pool to lower direct Osmosis inflation until governance returns it.\n\n* Voting No for this proposal indicates that 1% shall continue to be the proportion of Osmosis inflation allocated to Liquidity Incentives that is redirected to the community pool.\n\n### Background \nOsmosis has been providing only 80% of the 45% (36%) of emissions to Liquidity Pools since Proposal 230.\nThese have now returned to the liquidity incentives as stated in the original proposal.\n\nSince Proposal 230, Osmosis has continued to attract liquidity in major tokens despite these lowered incentives.  This is hard to see at first glanc	e due to the market conditions but becomes much more obvious when viewing liquidity in terms of token amounts rather than value locked.\n\n[WETH Token Liquidity](https://commonwealth-uploads.s3.us-east-2.amazonaws.com/839d69c5-aa82-4ede-a02c-d43711abde7f.1656416646064)\n[WBTC Token Liquidity](https://commonwealth-uploads.s3.us-east-2.amazonaws.com/8e602367-a368-49a4-a127-aa81b4586ad0.1656416653281)\n[ATOM Token Liquidity](https://commonwealth-uploads.s3.us-east-2.amazonaws.com/fcd8f808-8161-4616-b66a-2536514f0ead.1656416664670)\n[USDC Liquidity](https://commonwealth-uploads.s3.us-east-2.amazonaws.com/053acb34-3552-4275-af7e-3d46f25c5585.1656416675731)\nATOM and USDC liquidity have been hit during this period by being an offramp for Terra and part of the loss due to exploited funds but have not seen a significant change in rate of growth due to the incentive spend change.\n\nThis raises the question of how much we are overpaying liquidity providers to bring their liquidity to Osmosis.  This overpayment contributes to the inflation of the Osmosis token and, if it is not required, then these tokens could be used either during the next hype period to attract new users, to pay for more teams to develop additional utilities for the Osmosis ecosystem or be used to provide incentives to other protocols building on Osmosis.\n\nIn the following model, we can see the estimated APR that a user would obtain if they were to stake the two separate halves of the liquidity pool on their own networks and how that compares with providing liquidity.  Where there is no alternative staking reward then OSMO staking APR is used as a substitute.\nhttps://docs.google.com/spreadsheets/d/1irSsCJbC7uGal8I5Eb0l2M2p6M7S20aUUkgfamK_zyg/edit?usp=sharing\nThe estimated overspend by Osmosis LP incentives compared to these staking rewards is around 37%.\n\nSome overspending is sensible to attract OSMO compounding in the Major/Osmo category pools where Osmosis would like to build liquidity to gain market share.  However the overspending is not only directly contributing to the inflation of the OSMO token, it may also be increasing the sell pressure on tokens such as ATOM, where the optimal use of staking rewards is currently to sell single sided into Pool 1 rather than re-stake.\n\nThis proposal initially asks for the funds originally removed for Terra Pools to resume redirection to the community pool for the foreseeable future.  If this is successful and the rate of token liquidity change continues then further proposals will be made to reduce emissions to liquidity pools even further whilst still remaining the primary liquidity mining location in the IBC.\n\nCommonwealth Thread: https://gov.osmosis.zone/discussion/5779-continued-reduction-of-emissions-to-liquidity-pools-during-the-bear-market",
   "deposit": "1uosmo"
}

Backtrace

[backtrace]

When submitting logs: please submit them as text and not screenshots.

@ValarDragon
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cc @czarcas7ic

@czarcas7ic
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I'll get a PR up soon

@czarcas7ic
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This issue became slightly more involved than I initially thought it would be. In order to be able to deliver my incentives audit on time I had to move off of this, but after discussion with @p0mvn we agreed the following has to be done:

  • add proposal-specific flags to NewCmdSubmitUpdatePoolIncentivesProposal and NewCmdSubmitReplacePoolIncentivesProposal
  • disable poolincetives tx commands since these should be only used with a gov prefix
  • register NewCmdSubmitReplacePoolIncentivesProposal handler on the gov module

@AlpinYukseloglu if you are looking to take on this issue as part of the pool-incentives audit, all the context is in the following slack thread https://osmosis-network.slack.com/archives/C027ELA290B/p1656435877608739

@catShaark
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catShaark commented Jul 14, 2022

can I take on this?

@czarcas7ic
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@catShaark Please do! I got sidetracked by other issues and it eventually went stale. This is where I stopped #1889

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4 participants