Umee and Osmosis Join Forces to Forge Cosmos DeFi Powerhouse

Umee and Osmosis are set to merge, forming a 'DeFi Hub' as Umee's UX Chain code integrates with Osmosis through a software upgrade, uniting the two networks.

Umee And Osmosis Join Forces To Forge Cosmos Defi Powerhouse_65d5cc4f9e655.webp

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.

1701767527

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.

1701767678

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.”

Related: ECB Chair Urges Tighter Regulation for DeFi Similar to Banks

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.

5.0/5

(100 votes)

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

What Is Defi

Editor Choice | Defi | Research

What is DeFi? Explore Decentralized Finance 2024

DeFi is a significant niche in the cryptocurrency market, accounting for over half of all projects. So, what is DeFi? What are the benefits and limitations of DeFi? Let's find out!

Defi Whales Forget

News | Altcoin | Defi | Editor Choice

DeFi Whales Forget Millions in Northbound Bridge Contracts

A wallet on the Optimism bridge contract holds $1.05 million, originating from a previous ETH transfer by Vitalik Buterin.

Azcnews Breaking

Defi | Editor Choice | Research

What is ERC20? A Guide to Creating an ERC20 Wallet

What is ERC20? For cryptocurrency investors, ERC20 is a familiar term. However, many still aren't clear on this concept.

Azcnews (2)

Altcoin | Defi | Editor Choice | News

The DeFi Boom Could Propel Ethereum Prices to $3500

Ethereum is showing signs of a bullish reversal, supported by DeFi sentiment and positive technical indicators. Despite initial setbacks, Ethereum's price stabilizes around $3,379 with potential for further upward movement.

Azcnews (1)

News | Blockchain | Defi | Editor Choice

Ripple’s XRPL Blockchain Expands Cross-Chain DeFi Integration

Ripple collaborated closely with the XRP Ledger blockchain community to develop an ecosystem for an automated market maker protocol.