Umee and Osmosis Join Forces to Forge Cosmos DeFi Powerhouse

Umee and Osmosis Forge a DeFi Powerhouse in Cosmos Merger

In a strategic move, Cosmos-based networks Umee and Osmosis are set to merge through an upcoming software upgrade, as disclosed in a December 4 announcement. The integration will see Umee’s UX Chain code seamlessly implemented on the Osmosis chain, fostering a synthesis of the two networks and giving rise to what the development teams term a “DeFi Hub” within the Cosmos ecosystem.

Umee, functioning as a decentralized lending protocol on its dedicated Cosmos chain named “UX Chain,” is poised to join forces with Osmosis, a prominent decentralized exchange (DEX) in the Cosmos realm operating on its independent network. With a cumulative volume exceeding $23 billion, Osmosis ranks as the fourth-largest Cosmos chain by total value locked (TVL), according to DefiLlama.

The collaboration aims to unite the strengths of both platforms on a singular chain, unlocking new possibilities for the exchange. The development teams envision advanced features such as spot margin trading, shorting, liquidations, stablecoin pools, interchain flash loans, and MEV markets, which were previously beyond reach. The merger signals a significant leap forward in the Cosmos ecosystem, creating synergies that promise enhanced functionality and a richer DeFi experience for users.

The synergized functionality of both chains will pave the way for innovative financial instruments such as flash loans and novel forms of Miner Extractable Value (MEV) within the consolidated DeFi Hub,” highlighted Sunny Agarwal, co-founder of Osmosis. He further explained, “Our original concept of flashmint via protorev for diverse cross-chain arbitrage led us to realize that integrating a lending protocol on the same chain would significantly enhance this overarching vision.”

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While the announcement did not specify a precise merger date, it encouraged users to stay tuned for forthcoming updates. Brent Xu, CEO of Umee, reassured the community that UX, the Umee UX Chain token, will persist. Xu mentioned that the development team will present a proposal, initiating a community discussion to collectively determine the future course of UX tokenomics.

Notably, Osmosis made strides by introducing a concentrated liquidity feature on July 12 and later, on October 3, announced the inclusion of a bridged version of Bitcoin for trading on the platform. The evolving landscape of these Cosmos-based networks suggests a dynamic and forward-thinking approach to enhancing the decentralized finance ecosystem.