1/ The Cosmos DeFi landscape could be on the brink of a paradigm shift.
With the launch of native $USDC, the potential for a tidal wave of liquidity is undeniable.
What does this mean for #Cosmos? Let's dive in. 🧵👇
2/ Since the successful launch of IBC in April 2021, we've seen an explosion of growth within the ecosystem.
- IBC now enables connectivity with over 50 different blockchains.
Each sovereign, but not without its own set of problems compared to their monolithic counterparts.
3/ The growth in Cosmos has not come without own set of growing pains, such as:
- Complex UX
- Liquidity Fragmentation
- Bridge Risks
- Multiple Algorithmic Stablecoins
Each of these, symptomatic of a lack of native liquidity.
4/ As such, Cosmos has often seen deep liquidity fragmentation.
- With the launch of various DEX's ( @CrescentHub and @osmosiszone) competing for a piece of the liquidity pie.
This has introduced increased complexity for users as liquidity has been increasingly bridged.
5/ The rise and collapse of @terra_money $UST gave Cosmos a glimpse of how native liquidity could impact the growth of an ecosystem.
During its peak, reaching close to $19B, this is 90% larger than all of Cosmos today!
6/ The launch of @axelarcore provided the Cosmos with a much-needed injection of liquidity.
- Enabling almost $1.9 billion in cumulative volume into and out of the Cosmos ecosystem.
Most of which has come in the form of bridged $USDC and $DAI.
7/ However, this has not come without it's own set of risks and UX issues.
- As such, we now have $USDC in Cosmos coming from a variety of chains such as @avalancheavax and @0xPolygon
Most of which has been enabled by Axelar.
8/ A common factor among the largest ecosystems is that they have both bridging solutions and native stablecoin liquidity.
- With USDC and Tether reigning as champions, enabling the free flow of DeFi activity.
Cosmos needs native stablecoin liquidity to fully flourish.
9/ And so the journey into Cosmos DeFi is kicking into overdrive with the launch of @noble_xyz
The launch of native $USDC will combine the power of one of the strongest stablecoin with the scalability already offered by IBC.
10/ @noble_xyz Native $USDC is a massive win for Cosmos DeFi as it solves:
❌ Complicated UX (One Canonical Denomination)
❌ Liquidity Concentration
❌ Fungibility of tokens
It also unlocks the fungibility of a $32.9 billion asset.
11/ To make this transition go smoothly, @osmosiszone has been building a stablecoin transmuter!
- This module will allow a 1 for 1 swap and conversion of assets, without facing slippage.
Users will be able to seamlessly swap from axlUSDC to noble's $USDC 🔥
12/ Cosmos has never stopped building, and @noble_xyz launch is a testament to this.
The introduction of native $USDC issuance compounds on the Cosmos thesis with the flurry of projects launching on Cosmos, surely in need of deep liquidity.
- @SeiNetwork
- @dYdX
- @penumbrazone
13/ Cosmos has never had a fully backed fiat stable coin.
We've gone through experimentation followed by trials.
This very well could be a game changer for the one of the largest ecosystems outside of Ethereum!
14/ Thank you for reading!
I hope you've found this thread helpful.
Follow me @Flowslikeosmo for more.
Show your support by Liking/Retweeting the first tweet below 👇
Tagging Fellow DeFi Chadsss you should follow
@Deebs_DeFi
@CryptoStreamHub
@crypto_linn
@DeFiMinty
@DeFi_Taha
@Chinchillah_
@0xTindorr
@0xsurferboy
@Louround_
@IamZeroIka
@Hercules_Defi
@MercyDeGreat
@0xSalazar
@thelearningpill
@FarmerTuHao
@0xShinChannn
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