Osmosis DEX and UX Chain Lending Protocol Propose Merger
Osmosis, the largest decentralized exchange (DEX) on Cosmos, and the lending protocol UX Chain (formerly known as Umee) have proposed a merger to become a comprehensive DeFi project.
According to a proposal on December 4th, both Osmosis DEX and UX Chain announced their efforts to leverage each other's strengths, aiming to merge their platforms within the Cosmos ecosystem.
If approved, the process will begin by integrating UX Chain's codebase into Osmosis. Additionally, the total value locked (TVL) of both platforms will be aggregated. In the initial phase, the two platforms will continue to use their respective tokens.
Once stabilized, the project may build a bridge to swap between the two tokens. This step will lead to the creation of a unified token representing both platforms.
Brent Xu, co-founder of UX Chain, stated to The Block:
"Each network will have a separate governance vote. Community governance will manage the separate processes for each network to reach a consensus around the ultimate goal of creating a DeFi hub."
Sunny Aggarwal, co-founder of Osmosis, shared his thoughts on the collaboration:
"This proposal to integrate the Umee UX DeFi experience into Osmosis will bring some truly powerful new features and functionalities to our users - and we are excited to continue collaborating with UX Chain based on the community's decisions."
Both development teams behind the projects have previously received significant funding. In 2021, UX Chain raised $32 million through a CoinList offering and $6.3 million in a seed round led by Polychain Capital. That same year, Osmosis raised $21 million in a token sale round led by Paradigm.
Last week, Osmosis DEX faced an issue that temporarily halted its operations. Osmosis has operated relatively quietly with few notable advancements. In June 2022, Osmosis encountered a technical vulnerability in its liquidity pool, which could have been exploited to mint tokens in large quantities.
For more updates on the merger and other developments, follow Osmosis and UX Chain on their official channels.
