ARC-71: Add Passive Concentrated Liquidity Pool Type on Terra Mainnet

Proposals ARC (Astroport Request for Comments)
1

Summary

This proposal aims to add the passive concentrated liquidity pool type on Terra 2 mainnet.

Abstract

After weeks of testing the passive concentrated liquidity pool on Terra testnet, we propose the addition of this pool type on Terra mainnet, thus making it the first pool of its kind on a production network within Cosmos. This thread points out the main features and advantages of PCL and what it can bring to Terra.

Executable Message

The executable message looks as follows:

[
  {
    "wasm": {
      "migrate": {
        "contract_addr": "terra14x9fr055x5hvr48hzy2t4q7kvjvfttsvxusa4xsdcy702mnzsvuqprer8r",
        "msg": "eyJwYXJhbXMiOiJld29nSUNBaWQyaHBkR1ZzYVhOMFgyTnZaR1ZmYVdRaU9pQTNNQ3dLSUNBZ0ltTnZhVzVmY21WbmFYTjBjbmxmWVdSa2NtVnpjeUk2SUNKMFpYSnlZVEY2ZFdZNFpteGhNREk1TWpadWFIQm1kbXN3T1dzeWNHYzJjWFk1WVdGNVpteHdNSEYwTkdFd2JYTndjSFV5YURSbGVIRnpObUZtTWpjMUlncDkifQ==",
        "new_code_id": 1614
      }
    }
  },
  {
    "wasm": {
      "execute": {
        "contract_addr": "terra14x9fr055x5hvr48hzy2t4q7kvjvfttsvxusa4xsdcy702mnzsvuqprer8r",
        "msg": "ewogICAgInVwZGF0ZV9wYWlyX2NvbmZpZyI6IHsKICAgICAgImNvbmZpZyI6IHsKICAgICAgICAiY29kZV9pZCI6IDE2MTMsCiAgICAgICAgInBhaXJfdHlwZSI6IHsKICAgICAgICAgICJjdXN0b20iOiJjb25jZW50cmF0ZWQiCiAgICAgICAgfSwKICAgICAgICAidG90YWxfZmVlX2JwcyI6IDAsCiAgICAgICAgIm1ha2VyX2ZlZV9icHMiOiA1MDAwLAogICAgICAgICJpc19kaXNhYmxlZCI6IGZhbHNlLAogICAgICAgICJpc19nZW5lcmF0b3JfZGlzYWJsZWQiOiBmYWxzZQogICAgICB9CiAgICB9Cn0=",
        "funds": []
      }
    }
  }
]

Copyright

Copyright and related rights waived via CC0.

4 Likes
2

I fully support this proposal, which will bring better capital efficiency to Terra’s LPs.

1 Like
3

Pretty awesome. Can’t wait!

But one question - once this pool type has been added to mainnet, how will we go about transferring liquidity to concentrated liquidity pools?

I can see several ways of doing this.

Probably the simplest would be to deploy PCL pools for LUNA-USDC and ASTRO-USDC with appropriate parameters. Then pass a proposal to move all ASTRO incentives from the LUNA and ASTRO constant product pools to the corresponding PCL pools.

Would be curious to hear from others about this.

1 Like
4

The only way to deploy a PCL pool for two tokens that have a XYK pool is through a governance proposal that:

  • Deregisters the XYK pool
  • Creates the PCL pool
  • Moves ASTRO emissions from the XYK to the PCL pool (if there are any)

For tokens that don’t yet have a pool on Astroport, anyone can create one right away

2 Likes
5

We fully support this proposal. Excited to see the passive concentrated liquidity pool type go live on mainnet!

1 Like
6

I also support this proposal.

7

Fully in support. Cant wait to see how the process pans out

8

This proposal will need to be resubmitted due to the fact that the previous PCL pool version had a bug related to liquidity provision.

The new executable message looks as follows:

[
  {
    "wasm": {
      "migrate": {
        "contract_addr": "terra14x9fr055x5hvr48hzy2t4q7kvjvfttsvxusa4xsdcy702mnzsvuqprer8r",
        "msg": "eyJwYXJhbXMiOiJld29nSUNBaWQyaHBkR1ZzYVhOMFgyTnZaR1ZmYVdRaU9pQTNNQ3dLSUNBZ0ltTnZhVzVmY21WbmFYTjBjbmxmWVdSa2NtVnpjeUk2SUNKMFpYSnlZVEY2ZFdZNFpteGhNREk1TWpadWFIQm1kbXN3T1dzeWNHYzJjWFk1WVdGNVpteHdNSEYwTkdFd2JYTndjSFV5YURSbGVIRnpObUZtTWpjMUlncDkifQ==",
        "new_code_id": 1614
      }
    }
  },
  {
    "wasm": {
      "execute": {
        "contract_addr": "terra14x9fr055x5hvr48hzy2t4q7kvjvfttsvxusa4xsdcy702mnzsvuqprer8r",
        "msg": "ewogICJ1cGRhdGVfcGFpcl9jb25maWciOiB7CiAgICAiY29uZmlnIjogewogICAgICAiY29kZV9pZCI6IDE3NTQsCiAgICAgICJwYWlyX3R5cGUiOiB7CiAgICAgICAgImN1c3RvbSI6ICJjb25jZW50cmF0ZWQiCiAgICAgIH0sCiAgICAgICJ0b3RhbF9mZWVfYnBzIjogMCwKICAgICAgIm1ha2VyX2ZlZV9icHMiOiA1MDAwLAogICAgICAiaXNfZGlzYWJsZWQiOiBmYWxzZSwKICAgICAgImlzX2dlbmVyYXRvcl9kaXNhYmxlZCI6IGZhbHNlCiAgICB9CiAgfQp9",
        "funds": []
      }
    }
  }
]

The readable version for this message looks as follows:

{
   "whitelist_code_id": 70,
   "coin_registry_address": "terra1zuf8fla02926nhpfvk09k2pg6qv9aayflp0qt4a0msppu2h4exqs6af275"
}

{"params":"ewogICAid2hpdGVsaXN0X2NvZGVfaWQiOiA3MCwKICAgImNvaW5fcmVnaXN0cnlfYWRkcmVzcyI6ICJ0ZXJyYTF6dWY4ZmxhMDI5MjZuaHBmdmswOWsycGc2cXY5YWF5ZmxwMHF0NGEwbXNwcHUyaDRleHFzNmFmMjc1Igp9"}

{
    "update_pair_config": {
      "config": {
        "code_id": 1754,
        "pair_type": {
          "custom":"concentrated"
        },
        "total_fee_bps": 0,
        "maker_fee_bps": 5000,
        "is_disabled": false,
        "is_generator_disabled": false
      }
    }
}
2 Likes