Delphi Labs recently announced that Mars Protocol is deploying on Osmosis. We are thrilled to welcome the Mars community and its developers to the Osmosis interchain DEX suite. Separately, the two platforms have been pioneering the future of permissionless, uncensorable finance in trading and lending. Now they will be innovating together.
Like Osmosis, Mars offers both rock-solid financial products with exceptional UX as well as more experimental features that push DeFi to new heights. Specifically, while Mars offers regular (i.e. over-collateralized) DeFi lending, borrowing, and leverage, it is also working to solve the white whale of on-chain credit / under-collateralized lending. It plans to do this by lending only to smart contracts whitelisted by Mars governance and only up to limits established with the help of the Mars Risk Framework algorithm.
Osmosis is well prepared to offer Mars a soft landing following the Terra implosion. Beyond the fact that both platforms are built on the Cosmos tech stack of Tendermint, the SDK, and IBC, Osmosis features a custom implementation of CosmWasm installed by the smart contracting platform’s creators, Confio Tech. For months, Osmosis has been building out tooling for CosmWasm and CosmosJS in order to make it easy for developers to build dApps on Osmosis or have their front-ends access the chain. And with the recent Axelar EVM bridge integrations, borrowers and lenders can access assets from multiple DeFi ecosystems, with more being onboarded constantly.
Within the Osmosis trading suite, Mars is going to subsume the Isotonic platform (under development) as a native lending platform that’s tightly integrated into the trading logic of the Cosmos DEX, the Osmosis AMM. This access will enable features like staged liquidations, efficient cross-margining, and the use of Osmosis LP shares as collateral. Naturally, the precise details of the integrations are currently in the planning stages and therefore subject to change.
Significantly, the Mars landing will free Osmosis Labs’ core developers to focus on the core functionality of being the best DEX in DeFi: threshold encryption, interfluid staking, concentrated liquidity, volatility-aware AMM logic, and much more to come. Select DeFi applications will be developed by external teams and added to Osmosis through permissioned CosmWasm smart contracts, building out the Osmosis trading ecosystem in a sustainable, modular way.
The end goal for Mars (as it is for other apps developing on Osmosis) is to launch its own app-chain. On Osmosis it will be able to tightly integrate the AMM logic, and it will also have a platform (via the Osmosis liquidity bootstrapping pool) to launch its IDO and get to market quickly. Further, the Osmosis developers will share their first-hand knowledge about how to spin up a successful Cosmos chain and connect it to the interchain. On a community note, Larry0x has been tapped to lead the development of the planned Mars Hub.
The Osmosis community is excited for what promises to be a mutually beneficial relationship with Mars. The Osmosis DAO can expect a Commonwealth post soon outlining some of the expected next steps. Developers from both communities are already brainstorming and figuring out what the possible integrations between the protocols will look like.