- Astroport and Osmosis have established a partnership in the larger interest of the community.
- Even though both are competing for the same space, such a collaboration is a positive step and will serve as a new milestone, something which other crypto communities could learn from and follow.
- Astroport will shortly establish an outpost there and introduce passive concentrated liquidity (PCL), a brand-new pool type on the DEX.
Astroport is preparing to launch an outpost on Osmosis and bring Passive Concentrated Liquidity (PCL) pools to the platform for the first time following resounding governance votes.
Osmosis and Astroport are competitors but have decided to collaborate in the interest of the community. The new partnership between these two largest DEXs on Cosmos spells new found opportunities for the members of the Cosmos community.
In the upcoming weeks, PCL pools are anticipated to go live on Osmosis, with deployment preparations currently underway.
Following resoundingly positive votes on Osmosis and Astroport governance, Astroport will shortly establish an outpost there and introduce passive concentrated liquidity (PCL), a brand-new pool type on the DEX.
“This is easily the biggest alignment I’ve seen in Cosmos,” says Delphi Labs Founder and CEO Jose Maria Macedo. “It’s two massive DEXes that outsiders look at as rivals coming together and assimilating. And they’re doing it in ways that benefit both protocols. They’re leaning into their strengths and combining to improve liquidity for the entire Cosmos ecosystem.”
Osmosis’s current “supercharged liquidity” pools will coexist with PCL pools, allowing LPs to select the optimum alternative based on their liquidity provisioning objectives.
Stakeholders in xASTRO will get standard PCL pool fees in return. Furthermore, a 10 basis point (0.1%) fee for Osmosis will be generated by every trade that is routed through the Astroport’s PCL pools. This cost will be divided between the OSMO staking pool and the Osmosis community pool.
This partnership will help to increase Astroport’s global trade volume and fee revenue while reaching the biggest and most significant DEX in the Cosmos ecosystem. Increase passive liquidity on Osmosis and expand the pool kinds and options available to Osmosis LPs and boost the efficiency of capital for all those that swap (or have trades routed via) Osmosis “Defragment” liquidity, which can be distributed to many AMMs across the universe.
Supercharged liquidity and PCL pools are complementary rather than rivals. Additionally, they should increase the “liquidity pie” for both methods in a way that benefits both of them by providing them on Osmosis.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
