Cosmos-Based Networks Umee and Osmosis to Merge, Creating Advanced DeFi Hub
Summary:
Umee and Osmosis, two Cosmos-based networks, are set to merge through a software upgrade. The move involves reimplementing Umee's UX Chain code on the Osmosis chain, which leads to the integration of features from both networks and the creation of a "DeFi Hub" for the Cosmos ecosystem. The merger, which still lacks a specific date, expands the exchange capabilities including spot margin trading, shorting, and liquidations among others. The UX token will continue to exist post-merger, subject to tokenomics management by community involvement.
A planned software upgrade will merge Cosmos-based networks Umee and Osmosis, as revealed on Dec. 4. The code of Umee's UX Chain will get incorporated into the Osmosis chain, leading to the unification of the networks' features. As a result, a "DeFi Hub" is set to be developed for the Cosmos ecosystem.
Umee is a self-governed lending protocol that operates on a unique Cosmos chain known as “UX Chain.” In the Cosmos ecosystem, Osmosis stands as one of the foremost decentralized exchanges (DEXs), also functioning on its proprietary network. It has achieved over $23 billion in aggregate volume and ranks as the fourth largest Cosmos chain with regard to total value locked (TVL), as per DefiLlama's report.
The teams behind both protocols decided to fuse the two networks, creating a solitary chain housing both the lending app and the DEX. With this fusion, the exchange will be able to provide advanced functions that previously couldn't be implemented. These include spot margin trading, shorting, liquidations, stablecoin pools, interchain flash loans, MEV markets among others.
Osmosis co-founder Sunny Agarwal shared that the consolidated structure of the chains will create opportunities for flash loans and novel MEV forms on the same DeFi Hub. He added that the co-existence of a lending protocol on the same chain aligns with their vision for establishing different types of cross-chain arb via flashmint through protorev.
The release about the amalgamation failed to specify a date, instead suggesting that users should anticipate further updates. Umee UX Chain's token, UX, will stay in operation, as confirmed by CEO Brent Xu in a comment to Cointelegraph. He also mentioned that the development team plans to propose solutions for managing the tokenomics of UX, which will be put forth for community discussion and decisions.
In its first-time implementation of a concentrated liquidity feature on July 12, Osmosis introduced a revolutionary change in the market. Followed by an announcement on Oct. 3 about its plan to permit a bridged version of Bitcoin (BTC) being traded on its platform.
Published At
12/4/2023 3:00:00 PM
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