{"id":264255,"date":"2024-03-13T19:11:39","date_gmt":"2024-03-13T13:41:39","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=264255"},"modified":"2024-03-13T19:11:39","modified_gmt":"2024-03-13T13:41:39","slug":"cosmos-defi-boosted-as-rivals-osmosis-and-astroport-collaborate-on-programmable-liquidity-pools-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/cosmos-defi-boosted-as-rivals-osmosis-and-astroport-collaborate-on-programmable-liquidity-pools-crypto-news\/","title":{"rendered":"Cosmos DeFi boosted as ‘rivals’ Osmosis and Astroport collaborate on programmable liquidity pools – Crypto News"},"content":{"rendered":"
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Cosmos-based decentralized exchange Astroport is set to deploy its passive concentrated liquidity (PCL) pools on Osmosis<\/a>, the largest Cosmos-based DEX by volume<\/a>, following successful governance votes on both platforms. This move marks an alignment between two of the most active DEXes in the Cosmos ecosystem, aiming to improve the overall trading experience and capital efficiency for users.<\/p>\n

PCL pools, which aim to provide the benefits of concentrated liquidity without requiring active management, will be offered alongside Osmosis\u2019s existing \u201csupercharged liquidity\u201d pools. Astroport\u2019s pools utilize an advanced repegging algorithm that automatically concentrates liquidity around the exponential moving average of ongoing trades. As Astroport core dev Andre Sardo explained,<\/p>\n

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\u201cWith PCL pools, you go and LP in a pool, and you can leave your tokens there for days, months or years, and have it automatically adjust to market conditions. Impermanent loss gets minimized, and fees get maximized.<\/p>\n

And because your liquidity is passive, it\u2019s truly programmable or composable. It can be tapped by apps and vaults and aggregators anywhere in the Cosmos.\u201d<\/p>\n<\/blockquote>\n

The deployment of Astroport\u2019s PCL pools on Osmosis is expected to benefit both protocols. Standard PCL pool fees will flow back to xASTRO stakers, while all trades routed through Astroport\u2019s PCL pools on Osmosis will generate a 0.1% fee for Osmosis, to be split between the Osmosis community pool and the OSMO staking pool. This move is anticipated to expand Astroport\u2019s reach, grow its global trading volume and fee generation, and attract more passive liquidity to Osmosis.<\/p>\n

Sunny Aggarwal, Co-Founder of Osmosis Labs, predicted the move could lead to record volumes within the first month.<\/p>\n

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\u201cCompetition is good, but aligning for the benefit of the greater community is even better \u2014 so it\u2019s very exciting to see Astroport and Osmosis joining forces here\u2026 Only time will tell, but I predict that the Astroport deployment on Osmosis will become one of the biggest by volume within a month or so of the launch.\u201d<\/p>\n<\/blockquote>\n

While supercharged liquidity and PCL pools may appear to be competitors, the teams believe they are better viewed as complementary offerings catering to different types of LPs. Supercharged liquidity pools are best optimized by professional market makers and active LPs who run their own algorithms and programmatically readjust their liquidity to match market conditions. In contrast, PCL pools cater to more casual LPs who prefer a \u201cdeposit and chill\u201d approach, according to the teams, allowing the pool\u2019s algorithm to concentrate their liquidity automatically.<\/p>\n

According to Jose Maria Macedo, Founder and CEO of Delphi Labs, this alignment between Astroport and Osmosis is a significant development in the Cosmos ecosystem. Macedo stated,<\/p>\n

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\u201cIt\u2019s two massive DEXes that outsiders look at as rivals coming together and assimilating. And they\u2019re doing it in ways that benefit both protocols. They\u2019re leaning into their strengths and combining to improve liquidity for the entire Cosmos ecosystem.\u201d<\/p>\n<\/blockquote>\n

Further, Astroport core developer Donovan Solms highlighted the portability of Astroport\u2019s codebase, comparing it to a \u201cmagic suitcase\u201d that can be deployed on any Cosmos chain. Solms explained,<\/p>\n

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\u201cWe can go wherever there\u2019s a need for liquidity in the Cosmos. And thanks to IBC, each deployment is interconnected. It\u2019s part of a bigger whole, which is this backend layer of truly passive, truly infinite liquidity.\u201d<\/p>\n<\/blockquote>\n

Preparations for the deployment are underway, with PCL pools expected to go live on Osmosis in the coming weeks. This historic alignment between Astroport and Osmosis is poised to improve capital efficiency for those who swap or have trades routed through Osmosis while also potentially \u201cdefragmenting\u201d liquidity spread across other automated market makers throughout the Cosmos ecosystem.<\/a><\/p>\n

Mentioned in this article<\/h6>\n
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Latest Alpha<\/span> Market Report<\/h6>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Cosmos-based decentralized exchange Astroport is set to deploy its passive concentrated liquidity (PCL) pools on Osmosis, the largest Cosmos-based DEX by volume, following successful governance votes on both platforms. This move marks an alignment between two of the most active DEXes in the Cosmos ecosystem, aiming to improve the overall trading experience and capital efficiency […]<\/p>\n","protected":false},"author":2,"featured_media":264256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-264255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/264255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=264255"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/264255\/revisions"}],"predecessor-version":[{"id":264257,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/264255\/revisions\/264257"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/264256"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=264255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=264255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=264255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}