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The proposed merger between the Osmosis and Umee DEXes on the Cosmos chain has the potential to benefit the latter’s native token, ATOM.
Code Integration for Enhanced Functionality
In a significant development within the Cosmos ecosystem, Osmosis, currently the largest decentralized exchange (DEX) by trading volume, is set to merge with Umee’s cross-chain lending UX Chain. This strategic move aims to enhance the capabilities of both platforms and create a more robust decentralized financial ecosystem.
As part of the merger, UX Chain will undergo a code transition to align with the Osmosis Blockchain. This alignment will seamlessly integrate existing liquidity, total value locked (TVL), and functionality into the Osmosis ecosystem. The merging of these two distinct product code bases will pave the way for a more streamlined and efficient decentralized exchange.
Governance Proposal and Tokenomics Management
Brent Xu, CEO of Umee, emphasized that the initial focus of the merger would involve merging the product code bases. Following this, a ‘call to action’ proposal will be presented to the community, seeking their input on the next steps in tokenomics management. The UX token, an integral part of the UX Chain, may play a crucial role in applying mesh security, shared security mechanics, or new tokenomic designs.
Highlighting the importance of community involvement in shaping the future of the merged ecosystem, Xu said,
“In crypto communities, builders should take a product-first mindset and eventually use that as a platform to improve the tokenomics. This is similar to mergers in tradfi where first the deal is announced to the public, and subsequently, the process begins where company governance must decide on all details and specifics of the deal toward final execution and closing.”
Combining Forces: UX Chain and Osmosis
UX Chain, previously known as Umea, was initially designed as a cross-chain DeFi hub on the Cosmos network. Osmosis, on the other hand, operates as an inter-blockchain communication p
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Author: Amara Khatri
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