Umee and Osmosis to Merge, Creating a DeFi Hub for Cosmos Ecosystem
Umee and Osmosis, both Cosmos-based networks, have announced their merger through a software upgrade. The code of Umee’s UX Chain will be implemented on the Osmosis chain, enabling the combination of features from both networks. This move aims to establish a “DeFi Hub” within the Cosmos ecosystem.
About Umee and Osmosis
Umee is a decentralized lending protocol that operates on its own dedicated Cosmos chain called “UX Chain.” On the other hand, Osmosis is one of the largest decentralized exchanges (DEXs) in the Cosmos ecosystem, running on its own network. It has over $23 billion in cumulative volume and is the fourth largest Cosmos chain in terms of total value locked (TVL).
Advanced Features and Benefits
The merger between Umee and Osmosis will allow the lending app and DEX to coexist on the same chain. This integration will enable advanced features that were previously not possible, such as spot margin trading, shorting, liquidations, stablecoin pools, interchain flash loans, MEV markets, and more.
Osmosis co-founder Sunny Agarwal highlighted that this combined architecture will open up opportunities for flash loans and new forms of MEV within the DeFi Hub. The teams are currently working on proposals and updates for users.
Maintenance of Umee UX Chain Token
Umee CEO Brent Xu clarified that the Umee UX Chain (UX) token will continue to exist after the merger. The development team will propose a plan for managing the tokenomics of UX and involve the community in discussions and decision-making.
Osmosis’s Previous Developments
Osmosis introduced a concentrated liquidity feature on July 12 and later announced the trading of a bridged version of Bitcoin on the exchange.
Hot Take: Creating Synergy Within the Cosmos Ecosystem
The merger between Umee and Osmosis marks an important step in the development of the Cosmos ecosystem. By combining their respective strengths, these networks aim to create a comprehensive DeFi Hub that offers advanced features and benefits to users. The integration of lending protocols and decentralized exchanges on the same chain will unlock new possibilities for flash loans, MEV markets, and more. The maintenance of the Umee UX Chain token ensures continuity for existing users. This merger demonstrates the commitment of both teams to drive innovation and synergy within the Cosmos ecosystem.
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