osmosis

Prop 975: Withdraw and Convert Redemption Rate Vault Assets to BTC

This proposal requests the withdrawal of liquidity from the Redemption Rate vaults managed by Margined, as Margined has announced the deactivation of these vaults.

Background

Osmosis governance previously approved the deployment of community pool assets into Redemption Rate vaults through:

  • Proposal 877 – Deploy ATOM to Margined Redemption Rate Arbitrage Strategy
  • Proposal 878 – Deploy TIA to Margined Redemption Rate Arbitrage Strategy

These vaults provided yield opportunities for the Osmosis community pool on inactive liquidity. However, with Margined winding down the product, the continuation of these positions is no longer viable.

These positions are currently composed of:

  • 54,812 ATOM
  • 20,805 TIA

An increase from the 50,000 ATOM and 19,200 TIA initially deployed.

By converting the withdrawn ATOM and TIA into BTC this proposal ensures consistency with the community pool’s long-term treasury management framework, as established in Proposal 965. This approach both simplifies asset management and aligns the treasury with Osmosis’ strategic reserve assets.

Proposal

  • Withdraw all assets currently deployed in the ATOM and TIA Redemption Rate vaults by utilizing the Liquidity SubDAO to perform the action.
  • Convert withdraw assets to BTC (~2.4 BTC).
  • Return assets to the community pool.

Forum Post: https://forum.osmosis.zone/t/withdraw-and-convert-redemption-rate-vault-assets-to-btc/3869