Osmosis OSMO + , the most important decentralized alternate on Cosmos, and lending protocol UX Chain (beforehand Umee) have proposed a merger with one another — signaling a significant consolidation within the Cosmos ecosystem. Upon approval, this merger may even see the combination of the lending logic and algorithms of the UX Chain with Osmosis’ DEX and create a complete DeFi hub.
This proposal, a collaborative effort by contributors from each Osmosis and UX Chain, detailed a strategic plan for the proposed merger. The method will unfold in steps, starting with integrating the UX Chain’s codebase onto the Osmosis Chain. This integration goals to amalgamate the capabilities of each platforms. Anticipated outcomes of this preliminary step embrace mixing shared complete worth locked throughout the 2 networks. At this preliminary step, each chains could have their respective tokens — the Osmosis token and the UX token — proceed to commerce distinctly.
Subsequently, there will likely be the potential for a step associated to combining the 2 tokens, together with a possible token swap or migration. In line with the proposal, this step would result in making a unified token that represents each networks. The token swap configurations will likely be determined primarily based on group governance.
“Every chain could have a separate governance vote from every blockchain community. The group governance will handle the processes individually for every community towards reaching consensus across the finish objective of making the DeFi hub,” Brent Xu, co-founder of UX Chain advised The Block in an announcement.
Umee and Osmosis proposed to unify capabilities
This proposed merger can be aimed toward enabling UX Chain so as to add worth to Osmosis’ mesh safety — the capability of the community to safe different blockchain tasks — by doubtlessly leveraging the mixed experience or merging validator units of each networks. Leveraging one another, UX Chain and Osmosis might discover the potential for growing superior liquidations, native margin buying and selling and MEV markets.
“This proposal to merge the Umee UX DeFi expertise into the Osmosis chain would allow some actually highly effective new options and functionalities for our customers — and we’re excited to proceed our collaboration with UX Chain with what the group decides is greatest,” Osmosis co-founder Sunny Aggarwal mentioned.
The event groups behind each tasks have beforehand secured vital funding. UX Chain raised $32 million via a CoinList coin providing in 2021, preceded by a $6.3 million seed spherical led by Polychain Capital. The identical yr Osmosis secured $21 million in a token sale spherical, with Paradigm main the funding.
