Polychain-backed Quasar introduces concentrated liquidity vaults on Osmosis

Cosmos-based DeFi protocol Quasar Finance launched its concentrated liquidity (CL) vaults on the decentralized exchange Osmosis, incorporating an automated mechanism to optimize yields for liquidity providers.

Quasar will oversee the vaults, which are non-custodial DeFi products. Within the CL vaults, users can deposit funds, and the protocol autonomously allocates them to various asset pools, including OSMO, ATOM, and stablecoins.

“Osmosis and Quasar are elevating their product offerings and maturing into professional protocols,” Valentin Pletnev, co-founder and lead of Quasar Labs, said. “It’s also the perfect time for us to reveal a new interchain-yield aggregation design choice to the market, one with less complexity and more stability,” he added.

Osmosis is one of the leading decentralized exchanges within the Cosmos ecosystem, holding assets valued at around $95 million. It recently released its v.16 update, which introduced concentrated liquidity pools to optimize decentralized trading.

Using data science models with vaults

A notable aspect of the CL vaults is Quasar’s collaboration with the data science firm DeFine Logic Labs (DLL). DLL’s responsibilities include collecting, analyzing, and monitoring data, both on-chain and off-chain, related to the CL pool vaults.

These vaults allow off-chain computations, which grant access to diverse data feeds and enable dynamic investment strategies based on variable market conditions.

Quasar is navigating the emerging DeFi niche on Cosmos, facing competition from existing projects like Mars, Sommelier, Kava, and emerging ones like Noble.

In 2022, Quasar secured a $6 million funding round with contributions from Polychain Capital and Blockchain Capital. It operates as a distinct blockchain within the Cosmos network.