Recently, the leading decentralized exchange on the Cosmos network, Osmosis, and the lending protocol UX Chain (formerly Umee) have proposed a merger. This merger is the result of a long-term collaboration between Osmosis and UX Chain, aimed at leveraging the strengths of both parties to create a comprehensive DeFi project.
The new DeFi project will prioritize security, explore advanced liquidation potential, facilitate natural collateralized trading, and tap into the MEV (Miner Extractable Value) market.
The specific strategic plan for the merger is as follows:
1. First, integrate the UX Chain source code into the Osmosis Chain to blend the features of both platforms. The Total Value Locked (TVL) of both platforms will be combined. During this phase, both chains will continue to operate independently with their respective tokens – Osmosis token and UX token.
2. Build a bridge to facilitate the exchange between the two tokens, Osmosis and UX. This will introduce an intermediary token.
“Each network will have separate governance voting. Community governance will shape the process for each network to achieve consensus on the ultimate goal of creating a DeFi hub.”
– Brent Xu, Co-Founder of UX Chain
Both projects have successfully raised substantial funding. UX Chain raised $32 million through a token sale on CoinList in 2021, and Osmosis raised $21 million in a token sale led by Paradigm in the same year.
It’s worth noting that Osmosis has experienced occasional disruptions and periods of downtime recently. Additionally, Osmosis has operated somewhat quietly, with limited public information available. So far, the DEX (Decentralized Exchange) has not made significant strides.
However, the merger with UX Chain represents a promising development for Osmosis, signaling a significant step forward in its development journey and a commitment to its community.