<p><span style="font-weight: 400;">Cosmos-based decentralized exchange Osmosis has launched a stableswap — a protocol for trading stablecoins. </span></p> <p><span style="font-weight: 400;">With this launch, Osmosis developers hope to become the main venue where Cosmos users can access and trade a wider range of stablecoins, both centralized and ones backed with crypto tokens. If successful, it could become the Cosmos-equivalent to Ethereum's main stablecoin exchange Curve.</span></p> <p><span style="font-weight: 400;">“We want to support multiple stablecoins in the Cosmos ecosystem — both larger centralized stablecoins (like USDC, USDT, BUSD), as well as some of the newer stablecoins in the Cosmos ecosystem,” Osmosis founder Sunny Aggarwal, said in a statement.</span></p> <p><span style="font-weight: 400;">The Osmosis stableswap is similar to other stablecoin exchanges, leveraging what’s called a “curve algorithm” that concentrates tokens in asset pools in a way that traders can exchange large amounts of stablecoins with minimal price impact or fluctuations in value. </span></p> <p>Osmosis is the largest decentralized exchange in the Cosmos ecosystem by daily volume and holds over <a href="https://defillama.com/chain/Osmosis">$177 million</a> in crypto assets, according to DeFiLlama.</p> <h2><span style="font-weight: 400;">Growing stablecoin volume on Cosmos</span></h2> <p><span style="font-weight: 400;">As various bridging solutions have come online in the last one year, including</span> <a href="https://satellite.money/"><span style="font-weight: 400;">Axelar</span></a><span style="font-weight: 400;"> and Gravity Bridge, many Ethereum-based stablecoins have poured into Cosmos, including USDC, USDT, BUSD and DAI. </span><span style="font-weight: 400;">In October, Circle, the issuer of USDC stablecoin, </span><a href="https://www.circle.com/en/pressroom/circle-announces-next-wave-of-usdc-support-for-multi-chain-ecosystem"><span style="font-weight: 400;">said</span></a><span style="font-weight: 400;"> it planned to natively launch on Cosmos in the first quarter of 2023.</span></p> <p><iframe frameborder="0" height="420" src="https://embed.theblockcrypto.com/data/decentralized-finance/stablecoins/adjusted-on-chain-volume-of-stablecoins-monthly/embed" title="Adjusted On-chain Volume of Stablecoins" width="100%"></iframe></p> <p><span style="font-weight: 400;">With the increasing expansion on Cosmos, stableswap pools will get a great deal of use, especially as the ecosystem further matures, Osmosis said. The team added that it will allow developers to create pools of different stablecoins similar to </span><a href="https://resources.curve.fi/lp/depositing/depositing-into-the-tri-pool"><span style="font-weight: 400;">Curve’s 3pool</span></a><span style="font-weight: 400;">, which it said will help improve stablecoin liquidity in the Cosmos ecosystem.</span></p> <p><span style="font-weight: 400;">In addition to hosting stablecoin trading, Osmosis also let quasi-pegged assets like liquid staking derivatives be traded with their corresponding native assets with similar efficiency. For example, trading of staked ATOM (</span><a href="https://app.stride.zone/"><span style="font-weight: 400;">stATOM</span></a><span style="font-weight: 400;">), the liquid staking token issued by Cosmos’ native asset called ATOM, will have a pool called ATOM/stATOM.</span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>