Osmosis, the leading decentralized exchange in the Cosmos realm, and the lending protocol UX Chain (formerly Umee) have both proposed a collaborative union. This signifies a significant consolidation within the Cosmos ecosystem.
Upon endorsement, this amalgamation could witness the infusion of UX Chain’s lending logic and algorithms into Osmosis’ DEX. This process aims to fashion an all-encompassing DeFi nucleus.
The blueprint for this proposal is a collaborative effort, orchestrated by contributors from both Osmosis and UX Chain. It intricately outlines the strategic course for the envisioned merger.
Codebase Integration and Token Unity
The unfolding process commences with the integration of UX Chain’s codebase into the Osmosis Chain. This strategic initiative is carefully crafted to seamlessly merge the inherent capabilities of both platforms.
Foreseen ramifications of this inaugural phase encompass the harmonization of combined total value locked across the dual networks. During this preliminary juncture, the Osmosis token and the UX token will persist in separate trading realms.
Sequentially, a subsequent step contemplates the potential amalgamation of the two tokens which involves the prospect of a token exchange or migration.
As articulated in the proposal, this phase would culminate in the creation of a unified token embodying the essence of both networks.
Shaping DeFi and Enhancing Mesh Security in Cosmos Ecosystem
The configurations for token exchange will be subject to determination through community governance. Brent Xu, co-founder of UX Chain, elucidated;
“Each chain will undergo distinct governance voting within its respective blockchain network. Community governance will independently steward the processes for each network, harmonizing towards consensus on the ultimate objective of birthing the DeFi nucleus.”
This envisioned merger aims to empower UX Chain by contributing value to Osmosis’ mesh security. This entails enhancing the network’s ability to safeguard other blockchain initiatives. The potential avenues for achieving this include synergizing expertise and merging validator sets from both networks.
Osmosis & UX Chain: Elevating DeFi in Cosmos Ecosystem
In their collaborative venture, UX Chain and Osmosis might delve into the exploration of advanced liquidation mechanisms, native margin trading, and MEV markets.
Sunny Aggarwal, co-founder of Osmosis, expressed enthusiasm, stating;
“This proposition to integrate the Umee UX DeFi experience into the Osmosis chain holds the promise of introducing formidable new features and functionalities for our users. We eagerly anticipate continuing our partnership with UX Chain in alignment with the community’s collective decision.”
Both projects’ development teams have previously secured substantial funding. UX Chain amassed $32 million via a CoinList coin offering in 2021, preceded by a $6.3 million seed round spearheaded by Polychain Capital.
Concurrently, Osmosis secured $21 million in a token sale round, with Paradigm leading the investment.