Cosmos-based networks Umee and Osmosis will merge via a software upgrade, according to a Dec. 4 announcement. Umee’s UX Chain code will be reimplemented on the Osmosis chain, allowing features of the two networks to be combined and creating what the development teams call a “DeFi Hub” for the Cosmos ecosystem.
Umee is a decentralized lending protocol that runs on its own dedicated Cosmos chain called “UX Chain.” Osmosis, on the other hand, is one of the largest decentralized exchanges (DEXs) in the Cosmos ecosystem, which also runs on its own dedicated network. It has over $23 billion in cumulative volume and is the fourth largest Cosmos chain in terms of total value locked (TVL), according to DeFiLlama.
According to the announcement, the development teams behind the protocols agreed to combine the two networks, allowing the lending app and DEX to exist on the same chain. The teams claim this will enable advanced features on the exchange that were previously not possible, including spot margin trading, shorting, liquidations, stablecoin pools, interchain flash loans, MEV markets, and others.
“The combined architecture of both chain functionality will open up the door for flash loans and new forms of MEV on…
