Cosmos-based networks Umi and Osmosis merge, creating ‘DeFi Hub’
Cosmos-based networks Ume and Osmosis will merge via a software update, according to a Dec. 4 announcement. Ume's UX chain code will be reimplemented on the Osmosis chain, allowing the features of the two networks to combine and create what the development teams call a “DeFi Hub” for the Cosmos ecosystem.
Umee is a decentralized credit protocol and a self-dedicated cosmos chain “UX Chain”. Osmosis, on the other hand, is one of the Decentralized Exchanges (DEXs) in the Cosmos ecosystem, which operates on its own dedicated networks. It has a total of more than $23 billion and is the fourth-largest cosmo chain by total value locked (TVL), DeFillama said.
According to the announcement, the development teams behind the protocols have agreed to combine the two networks, allowing the loan application and DEX to live on the same chain. The teams say this will enable advanced features on the exchange that weren't possible before, including spot margin trading, short rigging, liquidity generation, stable coin pools, interchain flash loans, MEV markets and more.
“The combined architecture of the functionality of both chains opens the door for flash lending and new types of MEV on the same DeFi Hub,” Osmosis founder Sunny Agarwal said, adding, “We originally envisioned Flashmint for many cross-types through Protorev. chain arb, and realize[d] An on-chain credit protocol further enhances this vision.
Related: Cosmos Hub greenlights ATOM cuts inflation to increase security
The announcement did not specify a specific date for the merger. Instead, it urged users to “watch for further updates.” As for the Umee UX Chain (UX) token, CEO Brent Shu said in a statement to Cointelegraph that “it will still exist.” The development team will present a proposal and have a call to action for the community to discuss and decide how to manage Tokinomics. [of UX]” said Shu.
Osmosis first implemented a concentrated liquid feature on July 12. On October 3rd, it announced that it would allow a bridged version of Bitcoin to be traded on the exchange.
