Cosmos-based networks Umee and Osmosis will merge through a software program improve, in line with a Dec. 4 announcement. Umee’s UX Chain code will likely be reimplemented on the Osmosis chain, permitting options of the 2 networks to be mixed and creating what the event groups name a “DeFi Hub” for the Cosmos ecosystem.
Umee is a decentralized lending protocol that runs by itself devoted Cosmos chain known as “UX Chain.” Osmosis, then again, is without doubt one of the largest decentralized exchanges (DEXs) within the Cosmos ecosystem, which additionally runs by itself devoted community. It has over $23 billion in cumulative quantity and is the fourth largest Cosmos chain when it comes to complete worth locked (TVL), in line with DeFiLlama.
In keeping with the announcement, the event groups behind the protocols agreed to mix the 2 networks, permitting the lending app and DEX to exist on the identical chain. The groups declare this can allow superior options on the change that have been beforehand not attainable, together with spot margin buying and selling, shorting, liquidations, stablecoin swimming pools, interchain flash loans, MEV markets, and others.
“The mixed structure of each chain performance will open up the door for flash loans and new types of MEV on the identical DeFi Hub,” stated Osmosis co-founder Sunny Agarwal, including “we initially considered flashmint through protorev for a number of forms of cross chain arb, and notice[d] a lending protocol on the identical chain would additional optimize this imaginative and prescient.”
Associated: Cosmos Hub greenlights ATOM inflation lower for safety enhance
The announcement didn’t state a selected date for the merger. As an alternative, it urged customers to “be looking out for extra updates.” So far as the Umee UX Chain (UX) token is anxious, it “will nonetheless exist” CEO Brent Xu clarified in an announcement to Cointelegraph. The event workforce will make a proposal, and it “can have a name to motion for the group to debate and determine on the right way to handle the tokenomics [of UX],” Xu acknowledged.
Osmosis applied a concentrated liquidity function for the primary time on July 12. On Oct. 3, it introduced that it would permit a bridged model of Bitcoin to be traded on the change.
