The Unity of DeFi Titans

In a remarkable display of collaboration, several decentralized finance (DeFi) protocols have banded together to combat the liquidity troubles plaguing the Cosmos ecosystem. This alliance includes the cross-chain bridging protocol Wormhole, the liquidity aggregator Swing, and lending protocol Tashi, all under the banner of the Cosmos network, Evmos.

Bridging the Gap: New Tokens on Evmos

Wormhole is set to roll out five new bridged tokens on Evmos, and not to be outdone, they’ll include some heavyweights like Tether (USDT), USD Coin (USDC), wrapped Ether (wETH), wrapped Bitcoin (wBTC), and Solana (SOL). As of September 19, a governance vote was underway, garnering nearly unanimous support for this substantial proposal.

How This Works for Users

Once approved, these tokens are expected to seamlessly integrate with Swing protocol, enabling users to transfer tokens onto Evmos from a variety of networks such as BNB Chain, Polygon, and Fantom. Talk about a liquidity expressway!

Streamlined Lending with Tashi

On the Tashi front, the protocol plans to incorporate Swing into its user interface. This means users will have the luxury of bridging coins with minimal clicks. Just imagine:

• Come for the tokens, stay for the loans!
• Deposit collateral and take out loans in both Cosmos and Ethereum coins.
• Got a loan? Swap it, drop it in liquidity pools, or perform other DeFi magic!

A Cry for Liquidity: Voices from the Frontline

Tashi co-founders, Lindsay Ironside and Kristine Boulton, voiced the urgent need for this system, likening the existing liquidity situation to a ‘crisis.’ “It’s like throwing a party and no one shows up because there’s no punch,” Boulton lamented, citing Wormhole’s presence on an impressive 29 chains as a potential savior in overcoming these challenges.

The Awkward First Date

Ironside shared a personal anecdote, recalling a frustrating experience trying to swap USDC for ATOM and navigating the initial gas fee hurdles. “It’s like trying to pay for a meal with a coupon that expired three weeks ago!” she exclaimed, reflecting on how this messy onboarding process illuminated the legion of obstacles facing new users.

The Future of Bridging and Interconnectivity

Swing CEO Viveik Vivekananthan chimed in, assuring that their service would make it easier for users to swap assets, converting a small amount into Evmos’ native coin to cover those pesky gas fees. Currently, Swing’s bridging capabilities are primarily focused on non-Cosmos networks, but future expansions are on the horizon, allowing for more robust inter-network integrations.

A Growing Ecosystem Contender

While the Cosmos community diligently strives to attract users with stellar new features, it faces competition from platforms like the Optimism Superchain. With protocols like Noble introducing stablecoins and Cosmos Hub implementing liquid staking, it’s clear that the race for liquidity is heating up.