Four DeFi titans are teaming up to revolutionize the Cosmos ecosystem.
Four leading decentralized finance (DeFi) platforms, Evmos, Swing, Tashi, and Wormhole, are forming an alliance to solve liquidity issues within the Cosmos ecosystem.
A key highlight of the partnership includes Wormhole’s plan to introduce five new bridged tokens on Cosmos network Evmos: Tether (USDT), USD Coin (USDC), wrapped Ether (wETH), wrapped Bitcoin (wBTC), and Solana (SOL).
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A governance vote concerning this proposal commenced on September 19th and has already garnered nearly unanimous support.
After these tokens are deployed on Evmos, the Swing protocol will enable users to transfer them into Evmos from any other supported blockchain. Supported chains include BNB Chain, Polygon, Fantom, and more.
Subsequently, Tashi will integrate the Swing protocol into its user interface, thus simplifying the bridging of these tokens as collateral for DeFi transactions.
It is believed that this action would ease the process of users taking out loans of Cosmos or Ethereum-based tokens, swapping those for other coins, or investing them in liquidity pools.
Swing and Tashi representatives claim the final step will be completed when the Wormhole proposal is approved and executed. The voting is set to conclude on September 24th, indicating that the new liquidity mechanisms should be operational shortly after.
Lindsay Ironside and Kristine Boulton, co-founders of Tashi, spoke about the pressing need for a solution to the liquidity shortfall in the Cosmos ecosystem. In particular, Boulton noted:
Nobody’s using it because they can’t get liquidity there. Wormhole is already operational on 29 different chains, so this partnership offers an excellent opportunity to resolve the liquidity crisis.
Swing CEO Viveik Vivekananthan further elaborated that the new system would simplify the onboarding process onto Evmos. The protocol will automatically convert a small fraction of sent tokens into the Evmos native coin to cover the gas fee for transactions.
The joint effort of Evmos, Swing, Tashi, and Wormhole symbolizes a significant stride in solving the Cosmos ecosystem’s liquidity challenges. This collaborative endeavor sets the stage for enhanced interoperability and user experience, as the crypto community eagerly anticipates the implementation of these liquidity solutions.