- Umee and Osmosis, two prominent networks in the Cosmos ecosystem, are merging.
- The integration involves Umee’s UX Chain code being implemented into the Osmosis chain.
- This collaboration is set to create a “DeFi Hub” within the Cosmos ecosystem.
Cosmos-based networks Umee and Osmosis are set to merge, forging a formidable alliance through a strategic software upgrade. According to a recent announcement on December 4th, the integration will involve implementing Umee’s UX Chain code onto the Osmosis chain, creating what both development teams are heralding as a “DeFi Hub” within the Cosmos ecosystem.
Umee, renowned for its decentralized lending protocol operating on its dedicated Cosmos chain called “UX Chain,” will join forces with Osmosis, a major decentralized exchange (DEX) in the Cosmos network. Osmosis boasts a cumulative volume exceeding $23 billion, standing as the fourth-largest Cosmos chain by total value locked (TVL), according to DefiLlama.
This collaboration aims to consolidate the strengths of both platforms on a singular chain, allowing the lending application and decentralized exchange to coexist seamlessly. The union promises various previously unattainable advanced features, including spot margin trading, shorting, liquidations, stablecoin pools, interchain flash loans, and MEV markets.
Sunny Agarwal, co-founder of Osmosis, expressed enthusiasm about the combined architecture, highlighting its potential to unlock new dimensions in decentralized finance. Agarwal stated, “The combined architecture of both chain functionality will open the door for flash loans and new forms of MEV on the same DeFi Hub.”
Although the merger date is yet to be specified, users are urged to stay tuned for further updates. Brent Xu, CEO of Umee, clarified that UX, the Umee UX Chain token, will continue to exist. The development team plans to propose a community discussion to decide on the future tokenomics of UX.
Osmosis, known for its innovative features, previously introduced concentrated liquidity and announced trading a bridged version of Bitcoin on its exchange on October 3rd. As the Cosmos ecosystem evolves, this merger sets the stage for a dynamic and integrated DeFi Hub, signaling exciting developments for the broader crypto community.