Umee and Osmosis are set to merge their Cosmos-based ecosystems through a software update. The implementation of Umee’s UX Chain code within the Osmosis ecosystem will enable the integration of both platforms’ features and facilitate the creation of a DeFi hub within the Cosmos ecosystem.
Umee is a decentralized lending protocol that operates on its customized Cosmos ecosystem called UX Chain, while Osmosis serves as one of the largest decentralized exchanges (DEX) within the Cosmos ecosystem.
According to data from DeFi analytics company DeFiLlama, Osmosis ranks as the fourth-largest Cosmos chain in terms of Total Value Locked (TVL), with over $23 billion in accumulated volume.
In an announcement made on December 4th, the development teams behind the protocols reached an agreement to merge the two platforms, allowing both the lending application and the DEX to exist on the same blockchain.
With this move, the teams will provide users with access to advanced features that were previously not possible. These include spot margin trading, yield farming, liquidations, stablecoin pools, cross-chain instant loans, MEV markets, and other services. While no specific date has been mentioned for the merger, officials have urged users to stay alert for further updates. Regarding the Umee UX Chain (UX) token, CEO Brent Xu stated that the token will remain in circulation, and the development team will propose a community discussion and decision-making process on how to manage the UX token.