Osmosis, the leading decentralized exchange on Cosmos, and lending protocol UX Chain (formerly Umee) have put forward a merger proposal within the Cosmos ecosystem.
Osmosis, the leading decentralized exchange on Cosmos, and lending protocol UX Chain (formerly Umee) have put forward a merger proposal within the Cosmos ecosystem. If approved, it has the potential to integrate UX Chain's lending logic and algorithms into Osmosis' decentralized exchange (DEX), establishing a comprehensive decentralized finance (DeFi) hub.
The proposal, a collaborative effort between contributors from Osmosis and UX Chain, presents a strategic plan for the merger. The process will commence with the integration of UX Chain's codebase onto the Osmosis Chain, aiming to combine the strengths of both platforms. This initial step may involve harmonizing the shared total value locked across the two networks, while maintaining separate trading for the Osmosis token and the UX token.
Subsequent phases may explore options for merging the two tokens through a token swap or migration. The specifics of the token swap will be determined through community governance, ensuring the creation of a unified token that represents both networks.
Both projects have previously secured notable funding, with UX Chain raising $32 million through a CoinList coin offering in 2021, and Osmosis securing $21 million in a token sale round led by Paradigm.
Sunny Aggarwal, co-founder of Osmosis, expressed enthusiasm about the potential for exciting new features and functionalities resulting from the merger. He emphasized the commitment to collaborate with UX Chain based on community decisions. Brent Xu, co-founder of UX Chain, emphasized that each chain will have an independent governance vote, with the community overseeing the processes individually but with a shared objective of establishing the DeFi hub.
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