Cosmos Prepares To Merge Two DEXes – Osmosis And Umee

The proposed merger between the Osmosis and Umee DEXes on the Cosmos chain has the potential to profit the latter’s native token, ATOM.

Code Integration for Enhanced Performance

In a big growth inside the Cosmos ecosystem, Osmosis, at present the biggest decentralized alternate (DEX) by buying and selling quantity, is about to merge with Umee’s cross-chain lending UX Chain. This strategic transfer goals to reinforce the capabilities of each platforms and create a extra sturdy decentralized monetary ecosystem.

As a part of the merger, UX Chain will bear a code transition to align with the Osmosis Blockchain. This alignment will seamlessly combine current liquidity, whole worth locked (TVL), and performance into the Osmosis ecosystem. The merging of those two distinct product code bases will pave the way in which for a extra streamlined and environment friendly decentralized alternate.

Governance Proposal and Tokenomics Administration

Brent Xu, CEO of Umee, emphasised that the preliminary focus of the merger would contain merging the product code bases. Following this, a ‘name to motion’ proposal shall be introduced to the neighborhood, looking for their enter on the following steps in tokenomics administration. The UX token, an integral a part of the UX Chain, might play a vital function in making use of mesh safety, shared safety mechanics, or new tokenomic designs.

Highlighting the significance of neighborhood involvement in shaping the way forward for the merged ecosystem, Xu mentioned, 

“In crypto communities, builders ought to take a product-first mindset and ultimately use that as a platform to enhance the tokenomics. That is just like mergers in tradfi the place first the deal is introduced to the general public, and subsequently, the method begins the place firm governance should determine on all particulars and specifics of the deal towards ultimate execution and shutting.”

Combining Forces: UX Chain and Osmosis

UX Chain, beforehand often called Umea, was initially designed as a cross-chain DeFi hub on the Cosmos community. Osmosis, alternatively, operates as an inter-blockchain communication protocol for Ethereum and Polkadot whereas additionally serving as a DEX inside the Cosmos ecosystem. After the merger, Osmosis’ TVL of $140 million will mix with UX Chain’s estimated TVL of $17.4 million, as reported by DeFiLama.

The merger brings forth a variety of lending options from Umee to Osmosis, together with spot margin buying and selling, shorting, liquidations, stablecoin swimming pools, interchain flash loans, and MEV markets. This integration is predicted to increase Osmosis’ choices, offering customers with a complete suite of monetary instruments and providers.

Osmosis Initiates Merger Proposal

Osmosis initiated the merger proposal, citing its place because the dominant DEX within the Cosmos ecosystem. The L1 community justified its alternative of UX Chain by mentioning the latter’s prominence within the lending sector. Osmosis introduced the collaboration as a catalyst for propelling the Whole Worth Locked (TVL) of each protocols to new heights, emphasizing the potential advantages of mesh safety within the evolutionary trajectory of blockchain networks.

ATOM Token’s Potential Upside

The collaboration between Osmosis and UX Chain holds promising prospects for the Cosmos’s native ATOM token. The efficiency of OSMO and UX tokens has seen notable will increase in current occasions, with OSMO’s worth standing at $0.74, reflecting a 30-day 70% surge. The merger, if efficiently executed, may contribute to a fair larger market cap place for ATOM, aligning with the constructive developments noticed within the efficiency of the concerned tokens.

Disclaimer: This text is supplied for informational functions solely. It’s not provided or meant for use as authorized, tax, funding, monetary, or different recommendation.