Osmosis To Add Stablecoin Liquidity to Cosmos

Osmosis is set to launch a “version of the Curve 3pool, which includes USDC, Tether, and BUSD,” founder Sunny Aggarwal told Blockworks


Satheesh Sankaran/Shutterstock.com modified by Blockworks


The largest decentralized cryptocurrency exchange (DEX) on the Cosmos interchain will soon have its very own version of the Curve 3pool. 

Osmosis will be starting up pools to facilitate stablecoin trades pending the addition of Binance USD (BUSD) support on cross-chain messaging service Axelar, Sunny Aggarwal, the founder of Osmosis, told Blockworks.

“We want to create our own version of the Curve 3pool, which includes USDC, Tether, and BUSD,” Aggarwal said. 

Osmosis chose to include BUSD as its third stablecoin in its 3pool because it is the third-largest stablecoin by market capitalization and second-biggest by trading volume.

Aggarwal said BUSD is “pretty trustworthy [because] it’s just Paxos under the hood.”

The DEX revealed last week that it had launched a StableSwap — a protocol for trading stablecoins — in hopes that Osmosis will soon become the go-to space for users to access and trade a multitude of stable tokens in the Cosmos ecosystem.  

“Instead of Osmosis having its own stablecoin and competing, we want to be this neutral DEX that allows for the ‘Curve wars of Cosmos’ to take place,” Aggarwal said.

StableSwap is a new AMM [automated market maker] that can help execute lower slippage trading between similar assets — stablecoins is the logical first application, Aggarwal said. 

The algorithm used to code the system is a derivative of Solidly — an AMM that incentivizes fee-generation and enables low cost. 

Beyond trading stablecoins, Aggarwal believes that its latest StableSwap protocol has other use cases.

“There’s a lot of demand for using it for its staking derivatives too,” he said.

Currently, on Ethereum, the largest DEXes — Curve and Uniswap — are separate products, which Aggarwal believes to be a missed opportunity. 

Osmosis is currently the largest DEX on the Cosmos ecosystem, its total value locked (TVL) currently sits around $177 million, according to DeFiLlama, and Aggarwal said that the purpose of launching a StableSwap is to capture the stable flow which already exists on the DEX.

The StableSwap piece is part of a larger Osmosis v13 upgrade, called Fluorine, which was passed by community governance last week.

Other upgrades which were made part of the upgrade include adding a governance-configurable rate limit, inter-blockchain communication protocol (IBC) transfers and introducing cross-chain CosmWasm contracts.

The governance-configurable rate limit will, according to the proposal, allow Osmosis governance “to determine the amount of value which can flow in and out of the chain for a specific denom[ination], channel, and time period,” ensuring an increased level of security for assets on Osmosis. The CosmWasm contracts are intended to facilitate cross-chain swaps.

Aggarwal pointed to Cosmos’ multi-chain vision opening up new prospects for the DEX. “The other big thing would be being able to use it for fungible buying across different versions of the same asset — where we can bring the same asset by different bridges, but swap really easily between the different versions of the same asset.”

Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.

Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.

Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Curve's Stablecoin and Lending Market


AMMs are at the root of everything elegant and useful in DeFi.That's why Curve put LLAMMA at the center of its lending protocol.



Five years after the ICO boom and bust, the notion of traditional finance assets existing on the blockchain is not nearly as far fetched


The Fahrenheit Consortium beat out competing offers from Novawulf and BRIC


A research paper modeled the reliability and carbon footprint of crypto mining in Texas


Bring in the next million developers, and then we can start worrying about where to find the next billion users



Web3 real estate investing platform Parcl leverages blockchain to address the current bottlenecks facing property investing


Over 130 family office professionals surveyed noted a 90% client interest in crypto, a finding at odds with Goldman Sachs earlier this month