Cosmos News /// by ZKV #113
Orderbooks
A little bit of chit-chat
On June 5th, 2024, the Cosmos Hub chain halted after the v17 upgrade due to a bug in the ICS provider module's handling of validator set updates. The incident lasted approximately 4 hours and 40 minutes. The issue was traced to the GetLastValidators function, which caused the halt when the validator count exceeded the MaxValidators parameter. A temporary fix truncated the list, and the chain resumed operations on June 6th, 2024, with ICS 2.0 now active. A permanent code refactor is planned to prevent future occurrences.
Penumbra’s Summoning Ceremony resumed to kick off Phase 2. Instructions to join can be found here.
Orderbooks on the lab
A proposal posted on the Osmosis community forum introduces orderbooks as a new pool type on Osmosis, allowing limit orders to be placed at arbitrary price points while remaining compatible with existing liquidity deployments.
Orderbooks enable users to execute trades at specific prices, ensuring priority execution without relying on the availability of prior liquidity in pools. They offer market makers the ability to provide narrower spreads compared to the fixed spreads enforced by concentrated liquidity, resulting in more competitive prices for highly correlated pairs, such as asset variants or stablecoins.
The main benefits of limit orders include fulfilling trades with zero slippage once the target price is reached, particularly for large trades of highly liquid assets or small trades of illiquid assets on Osmosis. Additionally, traders can set their desired target prices for execution, eliminating the need for constant market monitoring or reliance on centralized services. Implementing orderbooks as a Cosmwasm pool type will integrate them into the sidecar routing service, ensuring that Osmosis’s existing volume immediately flows through orderbooks when they offer better execution prices than other liquidity sources.
The onchain orderbook mechanism, invented by the Osmosis Foundation, aims to be the most performant implementation among live orderbook DEXs in terms of runtime complexity. A detailed whitepaper will be released soon, with the implementation already available for review on the Github repository. Osmosis governance will retain administrative control over the order book contract to ensure transparency and decentralization, with a moderator account controlled by Osmosis contributors serving as a security measure to freeze pools in case of vulnerabilities.
Private LST?
Last week, it was announced that Namada's Multi Asset Shielded Pool (MASP) will support the shielding of Stride’s Liquid Staking Tokens (LST), allowing users to deposit these tokens into the pool.
Once deposited, users can maintain their staking rewards while benefiting from the privacy and data protection features of Namada's shielded pools. This integration aims to ensure that the liquidity required for effective data protection is achieved without the users sacrificing their staking income.
The integration is supposed to be secured by Stride’s measures, including Cosmos Hub's interchain security and advanced IBC rate-limiting, which protect against large-scale incidents.
A little bit of stats
