Thread by @Flowslikeosmo

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.

https://twitter.com/noble_xyz/status/1640670151644180480

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 🔥

https://twitter.com/sunnya97/status/1640904910710398976

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

https://twitter.com/Artemis__xyz/status/1640866378109571073

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!

https://twitter.com/noble_xyz/status/1640670160850649088

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 👇

https://twitter.com/Flowslikeosmo/status/1641802593986031616

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