0
0
Osmosis Founder Sunny Aggarwal Discusses Cosmos Ecosystem and Hyperbitcoinization
In a recent episode of the SlateCast, Sunny Aggarwal, the founder of Osmosis, engaged in a profound conversation with Akiba and Nate regarding the Cosmos ecosystem, the emergence of hyperbitcoinization, and the forthcoming developments in the realm of decentralized finance (DeFi).
Hyperbitcoinization and the Vision for Cosmos
Sunny Aggarwal articulated his enduring aspiration to construct the application layer for Bitcoin, a mission that sparked his interest in Cosmos from its inception. Reflecting on this vision, he shared, “Seven years ago, 2017, I thought we’re building for Bitcoin. How is this helping Bitcoin? And so that’s when I started working on Cosmos as this is how we build the app layer for Bitcoin.” With the introduction of Ordinals and other advancements within the Bitcoin ecosystem, a resurgence known as “Bitcoin Season 2” or “Bitcoin Renaissance” has emerged, presenting Cosmos with a pivotal role in the hyperbitcoinization movement.
Alloyed Assets: Mitigating Liquidity Fragmentation
Central to the discourse was the concept of “Alloyed Assets,” a groundbreaking solution devised to tackle liquidity fragmentation across diverse blockchain ecosystems. Sunny elucidated the rationale behind this innovative strategy, noting, “What happened was about a year or two ago, Osmosis utilized governance and the DAO essentially voted to establish Axelar ETH as the canonical ETH on Osmosis. The issue stems from the fact that over the last two years, one or more bridges, like Warble, have been introduced, but also a substantial portion of activity within the Ethereum ecosystem has shifted towards L2s.” Enabled by Alloyed Assets, users can seamlessly deposit and withdraw tokens from varied source chains, including Ethereum L2s, thereby enhancing fungibility and augmenting user experience.
Community Engagement and DeFi Advancements
Underpinning Osmosis’ success is robust community engagement, as Sunny emphasized the team’s practice of conducting quarterly customer surveys to elicit feedback and steer the project’s developmental trajectory. Emphasizing the imperative for perpetual innovation in the DeFi domain, Sunny underscored the potential fusion of social elements and DeFi, stating, “Especially with the rise of social, that’s where some of the really interesting stuff comes, when you combine social and DeFi. One of my things has always been DeFi and crypto today is very much designed in this model of the world, where we live in a trustless system, but I actually just don’t think that’s actually the real state of the world.”
Centralization vs. Decentralization Dialectic
Diving into the contentious terrain of centralization versus decentralization, Sunny voiced apprehensions about the trend towards centralized execution within the Ethereum L2 domain, cautioning, “The challenge lies in the fact that decentralization affords more than mere security; in a blockchain, one seeks an array of different attributes. One seeks safety, denoting the accurate execution of the protocol, alongside liveness. Is the system perpetually online? One also seeks censorship resistance.” Advocating for mesh security, which harnesses economic incentives across networks to elevate security and integrity without compromising decentralization, Sunny espouses a nuanced approach to network governance.
The episode ushered in a trove of invaluable insights into the trajectory of Osmosis, the Cosmos ecosystem, and the broader DeFi landscape. Anchored in a commitment to community engagement, innovation, and the preservation of decentralization principles, Osmosis is entrenched as a trailblazer in the dynamic milieu of decentralized finance.
Image/Photo credit: source url
