A group of decentralized finance (DeFi) protocols have teamed up to solve liquidity problems in the Cosmos ecosystem. The teams involved include cross-chain bridging protocol Wormhole, liquidity aggregator Swing, lending protocol Tashi, and Cosmos network Evmos.
According to statements from two of the teams involved, Wormhole will register five new bridged tokens for use on Evmos: Tether (USDT), USD Coin (USDC), wrapped Ether (wETH), wrapped Bitcoin (wBTC) and Solana (SOL). A Wormhole governance vote on this part of the proposal began on September 19 and currently has near unanimous support.
Once the tokens are launched on Evmos, they will be implemented into Swing protocol, which will allow users to send them to Evmos from any network that Swing supports, including BNB Chain, Polygon, Fantom, and others.
Tashi will also implement Swing into its user interface, allowing users to bridge the coins and deposit them as collateral with a minimum of button clicks. Users will then be able to take out loans of either Cosmos-based or Ethereum-based coins using this collateral, swap the loaned coins for others, deposit them into liquidity pools, or perform other common DeFi actions.
According to representatives from both Swing and Tashi, the integrations are ready to go live and are simply waiting for the Wormhole proposal to pass and be implemented. The proposal’s vote will come to an end on September 24, which implies that the new liquidity system should go live soon afterwards.
Related: DYdX to launch decentralized order book exchange on Cosmos: KBW 2023
In a conversation with Cointelegraph, Tashi co-founders Lindsay Ironside and Kristine Boulton claimed that the new system is needed to fix a “crisis” in liquidity within the Cosmos ecosystem. “We’ve got this chain that continues to deliver these amazing opportunities, but nobody’s using it because they can’t get liquidity there,” Boulton stated. But “[Wormhole], they’re on, I think it’s 29 different chains right now […] so it is an opportunity to fix that crisis.”
Ironside stated that she felt a new system was needed after she first began using the Cosmos ecosystem. She had a bad user experience the first time she attempted to swap USDC for Cosmos (ATOM) and send it to Evmos. In order to obtain the ATOM, she needed to first bridge her USDC to Cosmos Hub. But once the USDC was on the network, she didn’t have the ATOM to pay the gas fee to…
Click Here to Read the Full Original Article at Cointelegraph.com News…