Terraform Labs and Osmosis, top DeFi contenders today announce a unique $2 million liquidity partnership.
This strategic alliance seeks to build a vibrant trading market on Osmosis for the LUNA/OSMO pair, which will become synonymous with exchanging assets between Terra and Cosmos’ ecosystem at large.
This initiative is based on a $1M LUNA match from TFL and funded by OSMO 575,00 USD staked into the Osmosis Community Pool.
This merged liquidity pool will not only solve the current LUNA problems on Osmosis but also prepare the way for easy inter-chain swaps between Terra and other Cosmos assets.
This partnership has a huge potential for both parties. First, the initiative seeks to improve liquidity for LUNA-Cosmos swaps which in turn will attract more users and developers from both platforms. In this way, a lively DeFi community should emerge as well.
Moreover, higher trading volumes on Osmosis will lead to increased trader fees that accrue to OSMO token holders.
Apart from the obvious benefits, this collaboration also stands as a mark of deeper integration between Terra and Cosmos. As Osmosis can provide a comprehensive trading centre for assets of Terra and Cosmos, the possibilities in terms
If accepted, the proposal represents an important step forward in DeFi and establishing Osmosis as one of the pillars within this intricate architecture.
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