Ecosystems Umee and Osmosis to unite through upgrade.
Merger to combine lending and DEX features on Cosmos.
No specific date for the merger announced yet.
Ecosystems centered around Cosmos, Umee and Osmosis, will merge through a software upgrade, according to the announcement made on December 4. The implementation of Umee’s UX Chain code within the Osmosis ecosystem will allow the combination of the two networks’ features and enable development teams to create what they refer to as the DeFi Hub for the Cosmos ecosystem.
A Significant Step in the Cosmos Ecosystem
Umee stands out as a decentralized lending protocol operating on its own unique Cosmos ecosystem called UX Chain. On the other hand, Osmosis is one of the largest decentralized exchanges (DEXs) in the Cosmos ecosystem, serving its users through its own private network.
According to data from blockchain analytics firm DeFiLlama, Osmosis has a cumulative volume of over 23 billion dollars and ranks as the fourth-largest Cosmos chain in terms of Total Value Locked (TVL).
According to the announcement made on December 4, the development teams behind the protocols have agreed to merge the two networks, making it possible for the lending application and DEX to coexist on the same chain.
How Will the Process Continue?
With this step, the teams will enable users to utilize previously unavailable advanced features, including spot margin trading, short selling, liquidations, stablecoin pools, cross-chain flash loans, MEV markets, and other services. Osmosis co-founder Sunny Agarwal commented on the matter:
“The combined architecture of both chains’ functionalities will open the door on the same DeFi Hub for flash loans and new MEV forms. Initially, we contemplated the flashmint solution through protorev for various cross-chain arb types and realized that a lending protocol on the same chain would further optimize this vision.”
The announcement did not specify an exact date for the aforementioned merger. Instead, officials called upon users to stay alert for more updates. Regarding the Umee UX Chain (UX) token, CEO Brent Xu stated that the token would remain in circulation. Xu mentioned that the development team would make a proposal and call for action for the community to discuss and decide how the UX token should be managed.