Proposal #1049
Passed on 08 Oct 2026 with 89.4% of the votes for yes.
Yes
89.4%
100.0% without abstain
Veto
0.0%
of votes cast
Ended
08 Oct 2026
Asked
160.2K
locust-vault-1922 (osmo159f…uxr3)
89.35%
of votes cast
10.64%
of votes cast
0.00%
of votes cast
0.00%
of votes cast
Margined is winding down its managed liquidity offering on Osmosis. This proposal withdraws the community pool's remaining Margined vault positions in OSMO liquid staking token pairs and ETH/BTC. The recovered OSMO, about 8.1 million OSMO plus around 1.27 million more once the bOSMO has been redeemed, is burned. The ETH and BTC are returned to the community pool.
The community pool built up managed positions with Margined through a series of deployments:
The community pool holds 99.9 to 100% of every vault below.
| Pool | Pair | Underlying | ~Value |
|---|---|---|---|
| [Hidden link] | stOSMO/OSMO | 4,729,719 OSMO + 188,091 stOSMO | ~$170,000 |
| [Hidden link] | ampOSMO/OSMO | 2,332,760 OSMO + 70 ampOSMO | ~$79,000 |
| [Hidden link] | bOSMO/OSMO | 1,062,951 OSMO + 1,137,395 bOSMO | ~$79,000 |
| [Hidden link] | ETH/BTC | 0.83 ETH + 0.16 BTC | ~$15,000 |
Combined recoverable value is approximately $342,000, around 80% of it OSMO: about 8.1 million OSMO directly, plus around 1.27 million OSMO once the bOSMO has been redeemed. As housekeeping, the same action formally closes the collapsed yield-OSMO vault on [Hidden link], which holds only dust.
Pool 1252 is the main stOSMO/OSMO market on Osmosis. Between this vault and a separate static position in the same pool, the community pool supplies about 96% of the OSMO side of that market: about 4.7 million OSMO in the vault and 8 million OSMO in the static position.
The static position was placed below market as a backstop for stOSMO used as collateral in lending markets, so that liquidations could always clear. Those markets are no longer active on Osmosis: Mars has set borrowing limits on every asset to effectively zero, Levana's stOSMO market holds no liquidity, and the remaining stOSMO posted as CDT collateral is worth a few dollars.
Unlike bOSMO and ampOSMO, stOSMO keeps an independent market once both are gone. Other liquidity providers in Pool 1252 hold about 68,000 stOSMO and 457,000 OSMO, and the [Hidden link] stableswap holds about 165,000 stOSMO and 147,000 OSMO. Together, that leaves roughly 600,000 OSMO (about $20,000) on the buy side for stOSMO holders.
Outside pools, about 1,375 accounts hold around 781,000 stOSMO on Osmosis (about $41,000), 23 of them more than 10,000 each. Larger holders exiting quickly will find thinner markets than today. Stride has also [Hidden link] of its chain. Under that plan, stOSMO can be [Hidden link] as normal until 12 October; redemptions then pause while the backing unbonds, and resume on Osmosis around 20 November. Stride's redemption rate is currently about 1.463 OSMO per stOSMO, against roughly 1.42 in the pools today.
The community pool's Pool 1922 vault holds roughly 1,137,000 bOSMO, about 97% of all bOSMO in existence. It is also the only liquidity for bOSMO on Osmosis: it supplies all of Pool 1922's liquidity, and the other bOSMO pools are now effectively empty.
Outside the vault, roughly 1,300 wallets hold about 33,500 bOSMO between them, worth around $1,300, with the largest holding worth about $220. A further 6,900 bOSMO or so sits in contracts, including Backbone's own.
Withdrawing the vault therefore concludes the bOSMO/OSMO market on Osmosis rather than reducing its depth. Holders can still redeem through [Hidden link]. Redemption takes up to about 17 days: a 3-day batch followed by 14 days of unbonding. The community pool's own bOSMO is redeemed the same way, since selling it would mean selling into its own liquidity.
Half of the OSMO staked by the [Hidden link] sits with [Hidden link], and the other half with [Hidden link], which is jailed and outside the active set, earning no staking rewards.
The community pool's Pool 1923 vault is the only liquidity for ampOSMO on Osmosis. It holds about 2.33 million OSMO against 70 ampOSMO, a standing bid many times larger than all ampOSMO in existence (28,304 ampOSMO, worth about 38,000 OSMO or $1,300). Its withdrawal also concludes the ampOSMO/OSMO market.
Most ampOSMO, about 88%, sits in Eris vote-escrow, but every lock there has now ended, so its holders can withdraw it at any time. Together with wallet balances, about 27,100 ampOSMO (around $1,200) is held outside the vault.
Holders can redeem through [Hidden link]. Redemption takes up to about 16 days: a 2-day batch followed by 14 days of unbonding.
About 90% of the OSMO staked by the [Hidden link] sits with two jailed validators outside the active set, [Hidden link] and [Hidden link], earning no staking rewards.
osmo1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqmcn030.Execution via the Liquidity SubDAO 4/6 multisig, as in prior multi-stage liquidity operations.
Forum Post: [Hidden link]
Validators and delegator accounts, counted one vote each.
15 of 30 validators voted, 93% yes. 16 delegator accounts voted on their own, 81% yes.
Each validator's vote, by voting power.
15 validators voted, together 57.2% of the voting power.
