A group of decentralized finance (DeFi) protocols have come together to solve the liquidity problem in the Cosmos ecosystem. The teams involved include cross-chain bridge protocol Wormhole, liquidity aggregator Swing, lending protocol Tashi, and Cosmos Network’s Evmos.
According to statements from two of the teams involved, the wormhole will be able to collect Tether (USDT), USD Coin (USDC), Wrapped Ether (wETH), and Wrapped Bitcoin (wBTC) for use with Evmos. , and register five new bridge tokens for Solana (SOL).Wormhole Governance vote on this part of the proposal Began It was passed on September 19th and now has almost unanimous support.
Once a token is launched on Evmos, it is implemented in the Swing protocol and allows users to send tokens to Evmos from any network supported by Swing, such as BNB Chain, Polygon, Fantom, etc.
Tashi also implements Swing in its user interface, allowing users to bridge and deposit coins as collateral with minimal button clicks. Users can use this collateral to take out loans for Cosmos-based or Ethereum-based coins, exchange loaned coins for other coins, deposit into liquidity pools, and do other common tasks. You will be able to perform DeFi actions.
Representatives from both Swing and Tashi say the integration is ready to go live, just waiting for the Wormhole proposal to be passed and implemented. Voting on the proposal is scheduled to close on September 24, meaning the new liquidity system will go live shortly thereafter.
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In a conversation with Cointelegraph, Tashi co-founders Lindsey Ironside and Christine Boulton said that a new system is needed to resolve the liquidity “crisis” within the Cosmos ecosystem. He claimed that there was. “We have this chain that continues to offer these great opportunities, but no one is taking advantage of them because there is no liquidity available there,” Boulton said. but “[Wormhole]they’re on, I think 29 different chains now […] Therefore, it is an opportunity to resolve that crisis. ”
Ironside said that after they first started using the Cosmos ecosystem, they felt they needed a new system. The first time she tried to exchange USDC to her Cosmos (ATOM) and send it to her Evmos, she experienced a bad user experience. To obtain ATOM, she first needed to bridge USDC to Cosmos Hub. But once USDC was connected to the network, she didn’t have the ATOM to pay the gas fees to do the swap.
According to Ironside, this experience made the team realize they needed to focus on this issue. “Coming in as a new user […] And trying to find out where the solutions to these problems lie, [that] That was a big deal,” she said.
In a separate conversation, Swing CEO Viveik Vivekananthan agreed that the new system could solve these problems. When a user wants to exchange USDC for another coin on Evmos, Swing converts a portion of the sent coins into Evmos native coins, which are then spent on gas to make the exchange. Vivekananthan explained that this will allow users to onboard to Evmos using supported coins.
Initially, Swing will primarily only be able to bridge tokens from non-Cosmos networks to Evmos, but the team plans to expand compatibility to allow bridging between different Cosmos networks in the future, he said. said.
The Cosmos community has been working together to engage users with new features in 2023. Cosmos-based chain Noble launched its native version of the USDC stablecoin on March 28th, and Cosmos Hub implemented liquid staking on September 13th. It also faces a competitor in the form of Optimism Superchain, which is seeking to build a web of interconnected blockchains with similar functionality to Cosmos.
