Cryptocurrency

Cosmos-based networks Umee and Osmosis to merge, creating ‘DeFi Hub’

Cosmos-based networks Umee and Osmosis will merge through a software program improve, in accordance with a Dec. 4 announcement. Umee’s UX Chain code can 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 person interface. Supply: Umee.

Umee is a decentralized lending protocol that runs by itself devoted Cosmos chain known as “UX Chain.” Osmosis, however, is likely 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 by way of complete worth locked (TVL), in accordance with DeFiLlama.

In response to 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 had been beforehand not doable, 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,” mentioned Osmosis co-founder Sunny Agarwal, including “we initially considered flashmint through protorev for a number of kinds of cross chain arb, and understand[d] a lending protocol on the identical chain would additional optimize this imaginative and prescient.”

Associated: Cosmos Hub greenlights ATOM inflation minimize for safety enhance

The announcement didn’t state a selected date for the merger. As a substitute, 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 crew will make a proposal, and it “could have a name to motion for the group to debate and determine on the way to handle the tokenomics [of UX],” Xu acknowledged.

Osmosis carried out a concentrated liquidity characteristic for the primary time on July 12. On Oct. 3, it introduced that it might permit a bridged model of Bitcoin to be traded on the change.