According to a proposal dated December 4, DEX Osmosis and lending protocol UX Chain (formerly Umee) are negotiating a merger to take advantage of the strengths of both. This plan will bring the two platforms into a common ecosystem within Cosmos.
If the proposal is accepted, the process will begin by integrating the UX Chain source code into Osmosis, after which the total value locked (TVL) of both will be combined. In the early stages, each platform still uses its own token.
TVL of Osmosis
Once the merger is stable, the project can deploy a bridge to swap between the two tokens, creating one token that represents both platforms.
Brent Xu, co-founder of UX Chain, told:
“Each network will have a separate governance vote. Community governance will manage separate processes for each network to achieve consensus around the ultimate goal of creating a DeFi hub.”
Sunny Aggarwal, co-founder of Osmosis, shared about the collaboration:
“This proposal to merge the Umee UX DeFi experience into Osmosis will bring some really powerful new features and functionality to our users – and we are excited to continue our partnership with UX Chain from community decisions.”
Both projects received significant funding from development groups. UX Chain raised $32 million in a CoinList offering and $6.3 million in a seed round, led by Polychain Capital. Osmosis also raised $21 million in a token sale round, led by Paradigm.
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DEX Osmosis experienced an outage for several hours last week. Although operating quite discreetly and without many outstanding developments, Osmosis faced a technical vulnerability in June 2022, making it possible for the protocol to be exploited and mint tokens in large numbers.
