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- Contributors have proposed a merger between the Osmosis DEX and the UX Chain lending protocol.
- The merger is intended to produce an advanced DeFi protocol within the Cosmos network.
The Cosmos ecosystem is about to embark on a journey that could bring significant change to its ecosystem. The Osmosis DEX is proposing a merger between itself and the UX Chain. Osmosis, which currently holds the position of the largest decentralized exchange (DEX) on Cosmos, is looking to merge with UX Chain, a notable lending protocol formerly known as Umee.
In an announcement shared by Osmosis, the platform detailed its reason for proposing the merger, its purpose, and its benefits. As observed in the announcement, Osmosis has solidified its position as one of the most dominant and successful DEX in the Cosmos ecosystem.
Similarly, the Umee UX Chain has been a dominant lending platform in Cosmos. It is also equipped with more unique features than any other lending platform in crypto.
Both platforms seem to function on the same level within Cosmos, as a result, merging these blockchain protocols into the ecosystem appears to be promising, the announcement added.
The merger calls for a significant change from both Osmosis and the UX chain in the near term. As the announcement reads;
In this proposal, we will recommend that the UX Chain will transition its code development to be built on top of the Osmosis blockchain. This means reimplementing the code base on the Osmosis chain to benefit from the pre-existing liquidity, TVL, and functionality.
Mesh Security research is also one of the most significant aspects of the evolution of chain development. A token swap or migration mechanism is also regarded as a necessity for seamless transition for the community, and the alignment of its token values and functionalities.
Merger Introduces Benefits For Community Members
The merger is expected to bring some benefits to users of the Cosmos ecosystem. Users can expect the following after the merger is integrated; Margin trading, shorting, liquidations, stablecoins, Interchain flash loans, and MEV markets.
Initially, the phase of the merger between both platforms will center on product design and the merging of code bases to leverage modules onto the Osmosis chain. This will be done to ensure that the merger will result in the development of an advanced DeFi product that brings the best functionality to the crypto ecosystem.
As the announcement further stated;
For this initial proposal, the Osmosis chain and the UX chain will both remain in existence. Additionally, the Osmosis token and the UX token will both remain as independent tokens for this initial phase.
Going forward, community governance will decide what ideas and future iterations on China, and token configuration will be considered and implemented. Community members are advised to share their feedback as it is crucial in shaping the future of the proposed merger.
