DeFi

Proposal For Osmosis V13.0.0 Upgrade Gets Passed

The proposal for the V13.0.0 upgrade of Cosmos ecosystem DEX Osmosis got passed with 99.49% favor.

The upgrade is reported to include introducing a Stableswap pool designed to offer low slippage for two assets that are intended to be tightly correlated, adding the IBC Rate Limit module, supporting cross-chain CosmWasm contracts, and permitting instantly unlocking bonded liquidity for the use of collateral liquidation.

The much-anticipated stableswap AMM curve will be included in the v13 upgrade, allowing Osmosis users to create liquidity pools that are more optimized for pairs that are intended to be tightly correlated.

The ability to set different scaling factors for assets with pricing ratios other than 1:1 is a key feature of the stableswap curve used here.

The number of exploits on cross-chain communications protocols and bridges has increased unprecedentedly in recent months. Following the Binance bridge attack, core Cosmos Hub and Osmosis contributors examined the IBC tech stack and uncovered a significant vulnerability.

Before an attack could take place, a fix for the vulnerability was soon issued. However, this experience highlighted the significance of putting extra safeguards in place to protect users from any unforeseen IBC vulnerabilities.

IBC rate limitations are one type of safeguard. The Fluorine update will enable Osmosis governance to impose limitations on net inflows and outflows of any non-native asset via IBC. This will restrict the number of assets that may be transferred off of Osmosis during a certain time frame.

Governance can specify specific addresses to instantly unlock bonded liquidity with the v13 upgrade. This is useful for liquidating bonded liquidity used as loan collateral.

While this is another feature that will have no immediate impact on Osmosis users, it does foreshadow a future in which Osmosis liquidity providers will be able to leverage their bonded LP positions to take out loans, potentially on the Mars Protocol lending outpost that will launch on Osmosis early next year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.