Osmosis, the largest decentralized exchange in the Cosmos ecosystem, and the lending protocol UX Chain (formerly known as Umee), have proposed a merger, marking a major consolidation in the Cosmos ecosystem.
This ambitious project aims to integrate the lending logic of UX Chain with the decentralized exchange of Osmosis, in order to create a complete DeFi hub.
The merger will take place in several stages, starting with the integration of UX Chain’s codebase into the Osmosis chain. This integration aims to combine the capabilities of both platforms and merge their total value locked (TVL).
Initially, the two chains will continue to exchange their respective tokens – the Osmosis token and the UX token – separately.
A later stage may consider combining the two tokens, with a possible token swap or migration. This could result in the creation of a ‘unified token’ representing both networks, with configurations determined by the community governance of each chain.
In addition, this merger also aims to allow UX Chain to add value to Osmosis’ mesh security, meaning the network’s ability to secure other blockchain projects, by potentially leveraging combined expertise or merging the validator sets of both networks. This collaboration could lead to the development of advanced liquidations, native margin trading, and MEV markets.
