- Over 20 DeFi protocols have partnered to boost liquidity on the Cosmos blockchain
- Led by Wormhole, Tashi and Swing, the move will see the platforms enable bridging and usage of tokens on the Cosmos DeFi world
- The move is awaiting the finalization of a vote to give Wormhole the permission to create bridged tokens
Over 20 DeFi protocols have partnered to help increase DeFi activities on the Cosmos blockchain by boosting liquidity on the network. Led by Wormhole, Tashi and Swing, a cross-bridge, lending and liquidity platform respectively, the protocols plan to enable bridging and usage of tokens in the Cosmos DeFi space. The move is awaiting the finalization of a vote to give Wormhole the permission to create bridged tokens, consequently opening up the Cosmos network to the rest of the DeFi world.
98% Have Already Agreed
The bridged tokens will be used by Evmos, a Cosmos platform, through Swing to interact with Ethereum scaling layer Polygon, BNB Chain and other blockchains. Participating platforms will each have a part to play in easing and ensuring a smooth user experience for individuals accessing the DeFi world on the Cosmos blockchain.
Although the vote is still ongoing for another three days, its outcome is likely to support the registration of Wormhole assets considering that over 98% of voters so far have agreed to the proposal.
The assets include USDT, SOL, USDC, wrapped ETH and wrapped BTC bridged from Solana and Ethereum networks to the Evmos network.
Lack of Liquidity Hinders Cosmos Greatness
Participating platforms revealed that Cosmos is a great network but the lack of liquidity on the network is hindering its usage. The move marks another incident when DeFi platforms are uniting to promote the space.
Two months ago, for example, DeFi platforms supported Balancer’s proposal to increase liquidity on DEXs by redrawing the line between voting and liquidity. In February, DeFi protocols also united to rebuild trust in web3 products.
With the partnerships, it will increase the ease of using DeFi products across blockchains.