Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policies before making any financial decisions.
Osmosis, a Cosmos-based DEX, has launched a stableswap that allows users to trade multiple stablecoins. The new feature allows users to buy and sell a wide range of centralized stablecoins such as USDC, USDT, BUSD as well as those new to the Cosmos ecosystem.
Osmosis launches stablecoin trading exchange as part of new upgrade
Cosmos-powered decentralized exchange (DEX) Osmosis has launched a protocol that allows trading of stablecoins, known as stableswap. With the new feature, Osmosis aims to provide Cosmos traders with a wide range of stablecoins that are both centralized and backed by crypto tokens.
“We aim to support multiple stablecoins in the Cosmos ecosystem – both larger centralized stablecoins (like USDC, USDT, BUSD) and some of the newer stablecoins in the Cosmos ecosystem.”
– Sunny Agarwal, Founder of Osmosis.
Similar to other stablecoin exchanges, the stableswap uses a “curve algorithm” that collects tokens into asset pools, allowing traders to exchange large numbers of tokens with little price volatility. According to DeFi total value (TVL) aggregator DeFiLlama, Osmosis is the largest Cosmos-based DEX in daily volume with $177 million in assets under management (AuM).
The Stableswap launch comes as part of Osmosis’ latest v13 upgrade, which brought with it a host of features including IBC rate caps, multi-hop discounts and more. The stableswap allows Osmose users to “create pools of liquidity that are better optimized for pairs that are intended to be tightly correlated,” DEX said in a Medium post earlier this month.
“Examples of this could be stablecoin pairs like USDC/BUSD or different representations of the same asset like axlWETH/grav.WETH. In these cases, the assets in the pair are expected to trade very tightly within a 1:1 ratio.”
Osmosis v13.0.0 – Fluorine upgrade
Another useful feature of Stableswap is the ability to set different scaling factors for assets with a price ratio other than 1:1. The ability to make such adjustments can come in handy for several assets, Osmosis noted, such as B. Staking derivatives and leveraged assets.
Join our Telegram group and don’t miss any red hot digital asset story.
Cosmos welcomes new stablecoins
Stableswap’s launch comes after several Ethereum-powered stablecoins such as USDC, USDT, BUSD, and DAI made their way into Cosmos. Earlier this year, USDC Issuer Circle announced plans to launch natively on Cosmos in Q1 2023.
As Cosmos continues its rapid expansion, use cases of stableswap pools will also increase, Osmosis noted. The DEX added that developers can create pools of different stablecoins, similar to Curve’s 3pool.
In October, Cosmos revealed a critical vulnerability in IBC-enabled Cosmos chains. The bug was discovered after an extensive audit by Cosmos and Osmosis teams in IBC after a major BNB hack two months ago.
Finances are changing.
Find out how with Five Minute Finance.
A weekly newsletter covering the big trends in FinTech and Decentralized Finance.
Try it (free)
brilliant
You have signed up.
You’re well on your way to knowing.
Which feature of the new Osmosis v13 upgrade did you find most interesting? Let us know in the comments below.
About the author
Tim Fries is co-founder of The Tokenist. He has a B.Sc. in mechanical engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior associate on the investment team of RW Baird’s US private equity practice and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.