According to Cointelegraph, a group of decentralized finance (DeFi) protocols, including Wormhole, Swing, Tashi, and Evmos, have joined forces to tackle liquidity problems in the Cosmos ecosystem. Wormhole will register five new bridged tokens for use on Evmos: Tether (USDT), USD Coin (USDC), wrapped Ether (wETH), wrapped Bitcoin (wBTC), and Solana (SOL). The Wormhole governance vote on this proposal began on September 19 and currently has near unanimous support.
Once the tokens are launched on Evmos, they will be implemented into Swing protocol, which will allow users to send them to Evmos from any network that Swing supports, including BNB Chain, Polygon, Fantom, and others. Tashi will also implement Swing into its user interface, allowing users to bridge the coins and deposit them as collateral with a minimum of button clicks. Users will then be able to take out loans of either Cosmos-based or Ethereum-based coins using this collateral, swap the loaned coins for others, deposit them into liquidity pools, or perform other common DeFi actions.
The integrations are ready to go live and are simply waiting for the Wormhole proposal to pass and be implemented. The proposal’s vote will come to an end on September 24, which implies that the new liquidity system should go live soon afterwards. Tashi co-founders Lindsay Ironside and Kristine Boulton claimed that the new system is needed to fix a “crisis” in liquidity within the Cosmos ecosystem. Swing CEO Viveik Vivekananthan agreed that the new system will potentially fix these problems. In the beginning, Swing will only be able to bridge tokens from mostly non-Cosmos networks into Evmos, but the team plans to expand its compatibility to allow bridges between different Cosmos networks in the future.
