Decentralized exchange Osmosis and lending protocol Umee’s UX Chain has proposed a merger, a significant move for the Cosmos ecosystem to become the next top defi hub.
The collaboration aims to integrate UX Chain’s lending logic with Osmosis’ decentralized exchange, creating a comprehensive DeFi hub. The merger plan involves steps like integrating UX Chain’s codebase onto Osmosis Chain, initially maintaining separate tokens (Osmosis and UX) for trading.
Subsequent steps may include token consolidation through swaps or migrations, subject to community governance. Both chains will conduct separate governance votes, aligning with community consensus.
The merger seeks to enhance Osmosis’ mesh security and explore advanced features like liquidations, margin trading, and MEV markets. Osmosis co-founder Sunny Aggarwal expressed excitement about the potential for new functionalities.
Both projects, Osmosis and UX Chain, have previously secured substantial funding, with UX Chain raising $32 million in a 2021 CoinList offering and Osmosis securing $21 million in a token sale round the same year.
The proposed merger between Osmosis and UX Chain signifies a strategic move towards creating a powerful DeFi hub within the Cosmos ecosystem, potentially unlocking innovative features and functionalities.