A decentralized exchange (DEX) built on Osmosis (OSMO) was hacked for $1.14 million worth of crypto this week. The Levana Protocol (LVN), which focuses on perpetual swaps, announced on Wednesday that it had been hit with an oracle attack that impacted 10% of its liquidity pools (LPs). Levana says the issue has been resolved and […]
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Through a software upgrade, Umee UX Chain code will be implemented on Osmosis, combining the two networks.
Cosmos-based networks Umee and Osmosis will merge via a software upgrade, according to a Dec.
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 combined architecture of both chain functionality will open up the door for flash loans and new forms of MEV on the same DeFi Hub,” said Osmosis co-founder Sunny Agarwal, adding “we originally thought of flashmint via protorev for multiple types of cross chain arb, and realize[d] a lending protocol on the same chain would further optimize this vision.”
Related: Cosmos Hub greenlights ATOM inflation cut for security boost
The announcement did not state a specific date for the merger.
The new feature offers higher fees to LPs who provide liquidity within tighter price ranges but also causes them to not earn fees if the price goes outside of the range.
The Cosmos-based decentralized exchange Osmosis (OSMO) has launched a new “concentrated liquidity” feature, according to a July 12 announcement from the app’s developer, Osmosis Labs. The new feature allows liquidity providers (LPs) to choose a minimum and maximum price to offer to buy or sell crypto.
The Cosmos ecosystem is a web of blockchain networks that use the Cosmos software development kit and are connected through the Inter-Blockchain Communication (IBC) protocol. Osmosis is one of the largest decentralized exchanges (DEXs) in the ecosystem, doing approximately $120 million in volume each day, according to data from DefiLlama.
The new feature allows Osmosis LPs to provide liquidity at a minimum and maximum price. If the price falls below their minimum or above their maximum, they will no longer receive fees. On the other hand, they will receive higher fees when the price is within range than they would if they had chosen not to state a maximum or minimum.
According to the announcement, concentrated liquidity will provide a 100x to 300x increase in capital efficiency, meaning that a pool can have significantly less liquidity for the same amount of volume and yet still not cause slippage for traders.
The feature was first introduced to DEXs in Uniswap v3 and has become common throughout the Web3 world. However, the Osmosis team told Cointelegraph that it has been relatively rare in the Cosmos ecosystem before now.
Related: New Cosmos chain will use liquid staking tokens for security
In a conversation with Cointelegraph, Osmosis Labs protocol engineer Alpin Yukseloglu stated that the exchange’s new feature goes further than Uniswap’s original version. The original version of concentrated liquidity only allowed LPs to set minimums and maximums at particular price intervals, called “ticks.” This improved scalability but also created user experience issues when users couldn’t place price points exactly where they wanted them to be.
The version used by Osmosis adds more ticks within each price range, allowing for the setting of more finely tuned minimums and maximums and potentially reducing user frustration, as Yukseloglu explained:
“We’re keeping that scaling, but we’re adding more ticks into each bucket to make it so that you can have those more granularly placed preferences.”
Yukseloglu said Osmosis plans to implement a full-fledged on-chain order book at some point in the future. The feature is “essentially at implementation-level spec right now,” but the team is not yet ready to announce a timeline for its completion. The Osmosis Labs engineer claimed that both concentrated liquidity and the order book are part of a broader Osmosis goal of giving liquidity providers more options.
Crypto futures exchange dYdX is also developing an on-chain order book as part of its move to the Cosmos ecosystem.
In August, Osmosis co-founder Sunny Aggarwal expressed his view that Cosmos IBC is a superior means of securing cross-chain bridges when compared to other options, calling it “the safest bridging protocol in existence.” A critical vulnerability was found in IBC in October, which was patched the following day.
Coinbase customers can now trade the Cosmos (ATOM)-based decentralized finance (DeFi) altcoin Osmosis (OSMO). The top US crypto exchange added support for the altcoin under its “Experimental Label,” a designation it established for riskier, lower liquidity tokens. Osmosis is an automated market maker (AMM) protocol built on the Cosmos software development kit (SDK). It aims […]
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Top US crypto exchange Coinbase has added a Cosmos (ATOM)-based decentralized finance (DeFi) project to its listing roadmap, giving the altcoin a price boost amid the ongoing market doldrums. Coinbase customers could soon trade Osmosis (OSMO), an automated market maker (AMM) protocol built on the Cosmos software development kit (SDK) that aims to enable cross-chain […]
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Guy Turner from Coin Bureau is revealing his top four altcoin picks, including Cardano (ADA) and Monero (XMR). In a new interview on the CryptoBusy podcast, Turner says Cardano’s blockchain upgrades and passionate community earns it a place on his top-four list. “I’d go for ADA at the moment. Yeah, it’s got its problems. And […]
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Binance is sending a Cosmos (ATOM)-based altcoin surging after the exchange listed the asset in its “Innovation Zone” on Thursday. Binance rolled out trading services for Osmosis (OSMO), an automated market maker (AMM) protocol built on the Cosmos software development kit (SDK) that aims to enable cross-chain transactions by utilizing inter-blockchain communication (IBC). Explains the […]
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So far, Cosmos’ IBC seems to have stayed clear of troubled waters.
On August 2, the Nomad token bridge became yet another victim of cross-chain hacking after the protocol suffered a $190 million exploit. Joining a list of casualties alongside Axie Infinity’s Ronin Bridge and Solana’s Wormhole, many industry experts have cast doubt on the future of cross-chain technologies. However, not all cross-chain toolkits have thus far been exploited. Regarding this matter, Cointelegraph spoke with Osmosis’ co-founder Sunny Aggarwal. Osmosis is one of the most popular decentralized exchanges, or DEXs, on the Cosmos hub with $120 million in total value locked. Here’s what Aggarwal had to say regarding Cosmos’ namesake inter-blockchain communications protocol (IBC):
"The major bridge hacks are a reminder to victims that bridges are, in fact, too brittle to be allowed to custody significant amounts of capital at this stage in their lifecycle. High profile bridge hacks cast a light on IBC as being the most viable solution for cross-chain bridging as this understanding acts as an opportunity for the rest of the EVM-based ecosystems to look at IBC as a serious alternative to do cross-chain communication."
Currently, there are nearly fifty blockchains using IBC to conduct 10 million+ transactions daily, across and ecosystem with $1 billion+ in assets under management, in spite of the market downturn. “The fully trustless nature of the system is what makes it [IBC] work so well,” said Aggarwal.
The DeFi architect then pointed to a recent example illustrating the resilience of IBC: “A huge test to the Osmosis DEX occurred when Terra Luna collapsed. The majority of our namesake OSMO tokens that was staked resided in LUNA/OSMO and UST/OSMO pools. In order to prevent a malicious actor from minting infinite LUNA and draining the pools of OSMO stake, Osmosis governance implemented a trading halt on the Osmosis-Terra IBC channels.”
According to Aggarwal, IBC’s capacity to distribute points of failure through inter-chain sovereignty is precisely what keeps it as “the safest bridging protocol in existence.” Year to date, over $2 billion worth of funds have been stolen from cross-chain protocols, accounting for 69% of all crypto stolen in the period.
