The biggest decentralized cryptocurrency exchange on the Cosmos interchain will have its own version of the Curve 3pool in the near future.
Osmosis will launch pools to assist stablecoin transactions awaiting the inclusion of Binance USD (BUSD) functionality to the cross-chain messaging service Axelar, according to Osmosis creator Sunny Aggarwal.
Aggarwal said, “We want to establish our own version of the Curve 3pool, which comprises USDC, Tether, and BUSD.”
Osmosis decided to incorporate it as the third stablecoin in its 3pool because BUSD is the third-largest stablecoin by market capitalization and the second-largest by trading volume.
Aggarwal said that BUSD is “quite reliable” since Paxos is its underlying platform. The DEX said last week that it has established a StableSwap, a mechanism for exchanging stablecoins, with the hopes that Osmosis would soon become the go-to destination for users to access and trade a variety of stable tokens inside the Cosmos ecosystem.
“Rather of Osmosis having its own stablecoin and competing, we aim to be a neutral DEX that facilitates the ‘Curve Wars of Cosmos,” Aggarwal said.
StableSwap is a novel AMM [automatic market maker] that may facilitate reduced slippage trading between comparable assets, according to Aggarwal. Stablecoins are the obvious initial application. The system’s algorithm is a derivation of Solidly, an AMM that incentivizes fee production and allows cheap cost.
Aggarwal claims that its new StableSwap technology has applications beyond the selling of stablecoins. “There is a significant demand for its use in staking derivatives,” he added.
Curve and Uniswap, the two biggest DEXs on Ethereum, are now different products, which Aggarwal considers a squandered opportunity. According to DeFiLlama, Osmosis is now the biggest DEX in the Cosmos ecosystem, with a total value locked (TVL) of around $177 million.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.