Osmosis is currently disadvantaged by the isolation of leverage from the rest of the APP experience. Managing multiple apps to put idle assets to work generating yield and borrowing against a position doesn’t create the CEX like experience that Osmosis needs.
UX is somewhere between Aave V2 and Rari as a lending protocol. The model of DAO managed risk parameters creates a pretty share divergence of incentives between depositors and token holders. This effect has been obvious in the discussion of Jim Yang’s outside UX debt position. We’ve seen a lot of innovation in lending protocol design that can be a lot safer for low liquidity asset. Ajna and FraxLend provide isolated pools that aggressively respond to the market signals that an asset is no longer acceptable collateral. Morpho Blue has moved to professional risk managers for pools + an order book layer on top.
The optimal outcome for Osmosis is both deeper and safer integration with leverage.
Hi Jacob. Thank you for your support. We are discussing the best strategy. Most of our logic is in Cosmos SDK modules. We spent significant time to test them, and design them. Our code is rather compact and well organized. So ideally we would like to move that, rather than reimplement.
The options are:
Merge our Go Cosmos SDK code into Osomosis codebase - the least amount of work, and we will benefit with direct integrations for things like flash loans. However this will impose code maintainance between the 2 teams. I think we can handle that without problems, and improve each other codebase. Corporates can do it, so we can do it as well!
Reimplement as Cosmowasm smart contracts - no maintainance imposed to Osmosis codebase, however significant amount of work to do the migration.
Move the chain under Osmosis security zone (Replicated Security for the moment)
When there were rumors of osmo of merging with the hub, I was thinking about osmosis modules moving to the hub and I liked that and then ICS entered the picture and no I didn’t really want osmosis to wear Gaia’s slave collar.
So it seems to me that we are in agreement that osmosis should adopt the code from UMEE in the event of a merger, excellent.
Now how the heck do we work out a decent buyout price?
I think this merger is a very good idea.
Also, what would be the plan for team administration?
Do you want to join the osmosis team and be paid by osmosis?
Do you want to remain the UMEE team and be paid by that corporation?
Does the merger result in osmosis having multiple corporations working on it simultaneously?
I’d be very happy to grind on the terms of this a bit because unlike other mergers that have been discussed, I think that this one is sensible and viable and it will benefit the user communities of both chains.
I think that work is coming along pretty well. That’s not to say that there isn’t some challenging stuff to do along the way, there certainly is but additionally this merger could potentially bring in additional hands for that work.
Good questions. I was posting similar questions (and more) internally.
I don’t think we need a UX/ UMEE token buyout . The token can stay and govern & incentivies the protocol. In case of the codebase merge (option 1), Osmo token will keep the whole chain governance, so will have a super power over the UX token.
Also, what would be the plan for team administration?
Adding more structures to the team and “codeowners” processes will benefit the whole ecosystem. It will also increase the eyes for review and add hands to work on the util code.
Do you want to remain the UMEE team and be paid by that corporation?
Does the merger result in osmosis having multiple corporations working on it simultaneously?
I didn’t hear about any plan of creating a new “corporation”. Multiteam effort should work, and having OSMO a primary token for the chain goernance will work as well.
there is no interest in merging now nothing is happening, the site seems to be working, but a small logical explanation other than that to be invested and then where can I change them and why if the course of the graph is closer to the absence of volatility and where the project is going, will my investments be taken away and how where the system is not clear at this moment there is not much It’s not happening
Well okay just just kind of walk you through it, UMEE already has a corporation, or by the way do we now call it UX?
And I was just sort of trying to figure out and map out what the future might look like because again I recognize the quality of your team’s work and compared to every other similar proposal or idea this one actually makes sense.
…so my opinion is that what we (community including you and @brentxu) ought to do is kind of map out what a merged osmo+umee might look like.
For example I never even considered keeping both tokens live till you mentioned it.
Agreed, I think the whole let’s merge for the better of the ecosystem, Worrying about tokenomic later is amazing. shows the spirit of the community. However, some clarification and planning with community involvement is needed. That being said sounds like we all happy about the merger in general
Good point. We will need to propose more details for the community. They will be driven mainly by the merge strategy we are still discussing with the Osmosis tech team.
Re token powers, this is exactly what we are thinking about.