A little bit of chit-chat
A proposal to claw back the unvested ATOM from Prop 104 has been put to vote. In March 2023, Proposal 104 allocated 120,000 ATOM to Notional for continuous Cosmohub security monitoring. Recent internal upheaval at Notional, including the departure of 16 key developers and a legal dispute over company control, has raised doubts about its capacity to meet its obligations. With 90,000 ATOM still in vesting and the remaining developers departing, concerns are growing about Notional's ability to fulfil Proposal 104.
Mergers
This past week could easily be remembered as Cosmos' "Merge Week" due to multiple high-profile merger proposals and collaborations. In the following lines, we will go over each one of them.
Osmosis x UX Chain: A possible merger between Osmosis and UX Chain (previously known as Umee) is being considered. UX Chain is a lending platform that uses IBC, while Osmosis has a strong liquidity pool. This merger aims to combine Osmosis's liquidity pool with UX Chain's lending features to strengthen the DeFi ecosystem in Cosmos. The proposal involves integrating the UX Chain's functionalities into the Osmosis chain, using its existing liquidity and Total Value Locked (TVL). There are also plans for a token swap or migration mechanism to ensure a smooth transition and alignment of token values between the two networks. The merger promises to introduce advanced DeFi functionalities like margin trading, shorting, and interchain flash loans. While many community members are excited about the potential for innovation and growth, some have expressed concerns about the impact on smaller validators and the alignment with projects such as the Mars Protocol.
Osmosis x Mars x Neutron: Two proposals were posted simultaneously on the Neutron and Osmosis forums, suggesting that either of these chains could become the "home of Mars Protocol". Although the proposals are similar, there are some differences. Here’s what’s at stake:
What do both proposals offer? Both Osmosis and Neutron have offered Mars a financial incentive of $3M USDC. In addition to this, they have proposed an exchange of 60M MARS tokens, which signifies a considerable investment and stake in the Mars protocol. A critical aspect of both proposals is the relocation of Mars Hub to their respective chains. This would mean that Mars governance would be hosted on their chain, leading to an increase in Mars revenue on the hub chain of either Osmosis or Neutron, thereby boosting their respective GDP.
What are the differences? The proposals put forward by Neutron and Osmosis are different in several critical aspects. Neutron's proposal contains an exclusivity clause that prevents Mars from implementing new features to non-Neutron chains for a specific period, indicating a more exclusive partnership approach. On the other hand, Osmosis's proposal does not have such restrictions, giving Mars greater flexibility in its operations and collaborations. Moreover, Neutron's proposal demands that Mars shares a portion of its revenues, which is not a requirement in Osmosis's offer. Osmosis highlights its existing close relationship with Mars, focusing on its established infrastructure and significant volume of Mars' Total Value Locked (TVL) and token liquidity. In contrast, Neutron concentrates on the potential synergies and features of its platform, indicating a more integrated yet exclusive collaboration with Mars.
A good explanation of the pros and cons of each can be found here.
Neutron x CosmWasm: This week, Confio also made public a partnership with Neutron, which heavily utilizes CosmWasm, sharing a vision to build Interchain smart contracts. This collaboration aims to expand CosmWasm’s utility across numerous chains, enhancing its connectivity, education, and tooling network effects. To solidify this partnership, Neutron acquired a 25% stake in Confio, offering a new perspective as a primary user of CosmWasm and influencing Confio's strategic direction while maintaining its management and team structure. This partnership reinforces Confio’s commitment to serving a broad array of chains and partners, like the ICF, Osmosis, Terra, and others, continuing to advance CosmWasm’s capabilities and reach within the blockchain community.
Wrap Up
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