Liquid Staking: Enabling ICA on Regen for Quicksilver

TLDR;

This parameter change proposal, if passed, would enable the ICA host module by setting HostEnabled to true and by adding the necessary transaction types to the AllowMessages parameter.

Voting YES:

• A YES vote on this proposal indicates support for enabling the ICA host module by setting the HostEnabled parameter to true. And adding the following transaction types to AllowMessages thus permitting these messages types to be executed on the Regen chain by a controller chain: /cosmos.bank.v1beta1.MsgSend /cosmos.bank.v1beta1.MsgMultiSend /cosmos.distribution.v1beta1.MsgSetWithdrawAddress /cosmos.distribution.v1beta1.MsgWithdrawDelegatorReward /cosmos.gov.v1beta1.MsgVote /cosmos.gov.v1beta1.MsgVoteWeighted /cosmos.staking.v1beta1.MsgDelegate /cosmos.staking.v1beta1.MsgUndelegate /cosmos.staking.v1beta1.MsgBeginRedelegate /ibc.applications.transfer.v1.MsgTransfer

Voting NO:

• A NO vote on this proposal indicates the the ICA host module should not be enabled; the HostEnabled should remain in its current state which is set to false and no transaction types should be added to AllowMessages

Specifics of this proposal:

This proposal is to enable the ICA host module, HostEnabled, so that we can use Quicksilver to enable liquid staking for REGEN to mint qREGEN on the Quicksilver zone. This proposal does not enable liquid staking on Regen, but liquid staking via Quicksilver. The liquid staking module is not available on Regen. Quicksilver documentation notes that having the liquid staking module is recommended for security reasons but not required.

"Although not a hard dependency, it is strongly recommended to enable the Liquidity Staking Module on the chain as well, as this will allow for delegations to be liquid staked without the need for unbonding, thus providing better security for the network and a more frictionless UX for token holders." https://docs.quicksilver.zone/chain-onboarding/requirements

Benefits of liquid staking for REGEN holders on Quicksilver

• A Liquid Staking experience as close to native staking as possible. Quicksilver’s liquid staking model aims to mirror validator-delegator dynamics of the Tendermint consensus model.
• Ability to use Regen in the rapidly growing number of Cosmos DeFi applications while maintaining a healthy staking ratio and earning staking rewards. Liquid staking would provide high capital efficiency and the ability for Regen to position itself as the base token for ReFi in the interchain.
• Quicksilver is focused on maintaining native validator dynamics through liquid staking and seeks to maximize decentralization. This is why Quicksilver does not impose a validator whitelist on the network. Any validator on the Regen network active set can be delegated to, on Quicksilver.
• Sovereignty over validator distribution is also not taken away from REGEN stakers. Users who stake REGEN on Quicksilver will be able to signal intent; this will distribute their voting power to their chosen validators.
• Quicksilver will bring in the Governance by Proxy module in 2023. This will let qREGEN holders vote on REGEN governance proposals. Users with qREGEN on other chains would also be able to participate in REGEN governance proposals.

This proposal was prepared with contributions from: Quicksilver Cerulean Regen Network Development PBC Regen Foundation

This proposal was posted for discussion to Commonwealth.