Joining Forces for a Common Cause

In an exciting development for the Cosmos ecosystem, a group of decentralized finance (DeFi) protocols has banded together to tackle the pressing issue of liquidity. Notably, the alliance includes major players like the cross-chain bridging protocol Wormhole, Swing (a liquidity aggregator), Tashi (a lending protocol), and the Cosmos network Evmos. Together, they aim to weave a vibrant tapestry of interconnected DeFi services across various blockchain networks.

The Token Transformation

Wormhole has been on a roll, gearing up to register five new bridged tokens for Evmos: Tether (USDT), USD Coin (USDC), wrapped Ether (wETH), wrapped Bitcoin (wBTC), and Solana (SOL). A governance vote to approve this initiative kicked off on September 19, and the enthusiasm is contagious with nearly unanimous support so far. Fingers crossed that mice and men don’t mismanage the vote!

Swinging into Action

Once the tokens take flight on Evmos, expect them to dive right into the Swing protocol. Swing allows users to effortlessly send tokens to Evmos from a myriad of supported networks, including BNB Chain, Polygon, and more. Think of it as the Uber of cryptocurrency transactions, only less awkward and without the backseat driver!

The Streamlined Lending Process

What’s cooler than being able to bridge coins with just a few clicks? Tashi will integrate Swing into its user interface, creating a seamless experience for users. They’ll be able to bridge coins and deposit them as collateral with just a flick of their fingers. With this newfound liquidity, users can borrow assets and engage in the many DeFi activities available, from swapping to liquidity pools, all while sipping coffee in their pajamas. Talk about making it easier to be lazy!

Pioneering Change for the Cosmos Community

In a candid chat with Cointelegraph, Tashi’s co-founders, Lindsay Ironside and Kristine Boulton, opened up about the dire need for this new system. According to them, it’s not just about improving liquidity; it’s about unlocking the value of the Cosmos ecosystem. Ironside recounted her less-than-stellar experience when first navigating the platform, highlighting the significant barriers that new users face, with Boulton adding that “it’s a crisis because no one’s using the chain.”

Similarly, Swing’s CEO, Viveik Vivekananthan, echoed their sentiments, emphasizing the importance of making it easy for users to convert and swap assets. So, get ready to fuel your cryptocurrency engine as the new system whirs into action!

The vote for Wormhole’s proposal will conclude on September 24, and once approved, the new liquidity system is expected to zoom into existence shortly thereafter. With competition on the horizon from initiatives like Optimism Superchain, the Cosmos community is determined to stand out, having rolled out impressive features in 2023, with Noble’s native version of USDC and Cosmos Hub’s liquid staking among them.