ARC-117: Deploy transmuter pool

Proposals ARC (Astroport Request for Comments)
1

Summary

This proposal introduces a new “transmuter” pool type to the Astroport factory, designed to allow trades of any size to be executed at a 1:1 ratio without incurring fees or slippage. Additionally, it proposes updating the factory to accommodate permissioned pool types, with the transmuter pool being the first of such types to ensure it is used responsibly and to prevent misuse.

Abstract

The greater Cosmos ecosystem is moving towards native USDC issued by Noble instead of USDC bridged via Axelar. To improve the experience and ease the transition we need a way to “convert” Axelar USDC to Noble USDC and back without a user incurring any slippage or fees. The “transmuter” pool type addresses this by facilitating 1:1 trades, ideal for assets of equivalent value. To maintain the integrity and purpose of these pools, and to protect against the creation of pools for assets not equal in value, it will be necessary to update the Astroport factory to support permissioned pool types, starting with the transmuter pool.

Proposal Details

  1. Introduction of the “Transmuter” Pool Type:
    • A new pool type, termed “transmuter,” will be added to the Astroport factory.
    • These pools will allow for 1:1 trades of any size, catering to specific use cases such as stablecoin swaps or other asset pairs deemed equivalent in value.
    • Transmuter pools will feature 0% trading fees and no slippage, optimizing them for users seeking to exchange equivalent assets.
  2. Zero Fees and No Slippage:
    • To ensure that transmuter pools serve their intended purpose of facilitating seamless 1:1 trades, they will operate with 0% fees and no slippage.
    • This feature makes transmuter pools distinct and attractive for specific trading strategies and use cases within the DeFi ecosystem.
  3. Updating the Factory for Permissioned Pool Types:
    • The Astroport factory will be updated to allow for the creation and management of permissioned pool types.
    • This update is crucial to ensuring that only authorized and appropriate use cases leverage the transmuter pool type, maintaining its integrity and value proposition.

Conclusion

The introduction of the transmuter pool type and the update to the Astroport factory to support permissioned pool types represent significant step forward in transitioning to native USDC across all the chains we are deployed on.

Executable messages

The proposal will result in 4 on-chain proposals to vote on, one for each Astroport deployment

Part 1: Sei

[
  {
    "wasm": {
      "migrate": {
        "contract_addr": "sei1xr3rq8yvd7qplsw5yx90ftsr2zdhg4e9z60h5duusgxpv72hud3shh3qfl",
        "new_code_id": 2316,
        "msg": "e30="
      }
    }
  },
  {
    "wasm": {
      "execute": {
        "contract_addr": "sei1xr3rq8yvd7qplsw5yx90ftsr2zdhg4e9z60h5duusgxpv72hud3shh3qfl",
        "msg": "eyJ1cGRhdGVfcGFpcl9jb25maWciOnsiY29uZmlnIjp7ImNvZGVfaWQiOjIzMTcsInBhaXJfdHlwZSI6eyJjdXN0b20iOiJ0cmFuc211dGVyIn0sInRvdGFsX2ZlZV9icHMiOjAsIm1ha2VyX2ZlZV9icHMiOjAsImlzX2Rpc2FibGVkIjpmYWxzZSwiaXNfZ2VuZXJhdG9yX2Rpc2FibGVkIjpmYWxzZSwicGVybWlzc2lvbmVkIjp0cnVlfX19",
        "funds": []
      }
    }
  }
]

Part 2: Neutron

[
  {
    "wasm": {
      "migrate": {
        "contract_addr": "neutron1hptk0k5kng7hjy35vmh009qd5m6l33609nypgf2yc6nqnewduqasxplt4e",
        "new_code_id": 698,
        "msg": "e30="
      }
    }
  },
  {
    "wasm": {
      "execute": {
        "contract_addr": "neutron1hptk0k5kng7hjy35vmh009qd5m6l33609nypgf2yc6nqnewduqasxplt4e",
        "msg": "eyJ1cGRhdGVfcGFpcl9jb25maWciOnsiY29uZmlnIjp7ImNvZGVfaWQiOjY5NywicGFpcl90eXBlIjp7ImN1c3RvbSI6InRyYW5zbXV0ZXIifSwidG90YWxfZmVlX2JwcyI6MCwibWFrZXJfZmVlX2JwcyI6MCwiaXNfZGlzYWJsZWQiOmZhbHNlLCJpc19nZW5lcmF0b3JfZGlzYWJsZWQiOmZhbHNlLCJwZXJtaXNzaW9uZWQiOnRydWV9fX0=",
        "funds": []
      }
    }
  }
]

Part 3: Terra

[
  {
    "wasm": {
      "migrate": {
        "contract_addr": "terra14x9fr055x5hvr48hzy2t4q7kvjvfttsvxusa4xsdcy702mnzsvuqprer8r",
        "new_code_id": 2567,
        "msg": "e30="
      }
    }
  },
  {
    "wasm": {
      "execute": {
        "contract_addr": "terra14x9fr055x5hvr48hzy2t4q7kvjvfttsvxusa4xsdcy702mnzsvuqprer8r",
        "msg": "eyJ1cGRhdGVfcGFpcl9jb25maWciOnsiY29uZmlnIjp7ImNvZGVfaWQiOjI1NjYsInBhaXJfdHlwZSI6eyJjdXN0b20iOiJ0cmFuc211dGVyIn0sInRvdGFsX2ZlZV9icHMiOjAsIm1ha2VyX2ZlZV9icHMiOjAsImlzX2Rpc2FibGVkIjpmYWxzZSwiaXNfZ2VuZXJhdG9yX2Rpc2FibGVkIjpmYWxzZSwicGVybWlzc2lvbmVkIjp0cnVlfX19",
        "funds": []
      }
    }
  }
]

Part 4: Injective

[
  {
    "wasm": {
      "migrate": {
        "contract_addr": "inj19aenkaj6qhymmt746av8ck4r8euthq3zmxr2r6",
        "new_code_id": 426,
        "msg": "e30="
      }
    }
  },
  {
    "wasm": {
      "execute": {
        "contract_addr": "inj19aenkaj6qhymmt746av8ck4r8euthq3zmxr2r6",
        "msg": "eyJ1cGRhdGVfcGFpcl9jb25maWciOnsiY29uZmlnIjp7ImNvZGVfaWQiOjQyNywicGFpcl90eXBlIjp7ImN1c3RvbSI6InRyYW5zbXV0ZXIifSwidG90YWxfZmVlX2JwcyI6MCwibWFrZXJfZmVlX2JwcyI6MCwiaXNfZGlzYWJsZWQiOmZhbHNlLCJpc19nZW5lcmF0b3JfZGlzYWJsZWQiOmZhbHNlLCJwZXJtaXNzaW9uZWQiOnRydWV9fX0=",
        "funds": []
      }
    }
  }
]

Copyright

Copyright and related rights waived via CC0.

3 Likes
2

If the transmuter pool doesn’t have any trading fees, what will be the incentive for LPs to add liquidity into the pool? Unless there are existing investors willing to seed the pool, say from Noble team.

3

The chains and Noble will provide liquidity for the transmuter pools.

1 Like