To address the liquidity issues in the Cosmos ecosystem, a number of decentralised finance (DeFi) protocols, including Wormhole, Swing, Tashi, and Evmos, have teamed up. Five new bridged tokens will be registered by Wormhole for usage on Evmos: Solana (SOL), wrapped Bitcoin (wBTC), wrapped Ether (wETH), and wrapped Tether (USDT). This proposal’s Wormhole governance voting started on September 19 and is currently close to unanimous.
The Swing protocol will incorporate the tokens once they are published on Evmos, enabling users to send them to the platform via any Swing-compatible network, such as BNB Chain, Polygon, Fantom, and others. Additionally, Swing will be incorporated into Tashi’s user interface, enabling users to bridge the coins and deposit them as collateral with the fewest number of button clicks possible. Then, users can use this collateral to obtain loans of either Cosmos-based or Ethereum-based currencies, exchange the borrowed coins for other ones, put them in liquidity pools, or carry out other typical DeFi operations.
The integrations are prepared to go and are only awaiting the approval and implementation of the Wormhole proposal. The vote on the proposal will expire on September 24, thus the new liquidity mechanism should go into effect shortly after that. The new system, according to Lindsay Ironside and Kristine Boulton, co-founders of Tashi, is required to address a “crisis” in liquidity inside the Cosmos ecosystem. Viveik Vivekananthan, CEO of Swing, concurred that these issues may be resolved by the new system. Swing will initially only be able to bridge tokens from largely non-Cosmos networks into Evmos, but the development team hopes to eventually expand Swing’s compatibility to allow bridges between other Cosmos networks.
