In collaboration with the Composable Foundation, Picasso Network announced the integration of its inter-blockchain communication protocol with Ethereum.
This integration will enable the transfer of assets and data between the Ethereum (ETH) and Cosmos ecosystems, facilitating cross-chain interoperability.
“By connecting Ethereum and Cosmos, IBC And by designating Osmosis as a leading liquidity hub, we are poised for a new chapter in DeFi,” said Henry Love, Executive Director of the Composable Foundation.
This effort aims to strengthen the security of bridge operations and expand liquidity and innovation potential across blockchain networks, which aligns with the team's 2021 goals.
Osmosis has been selected as the primary destination for Ethereum assets within the Cosmos ecosystem. This selection was based on his contribution to IBC's volume, including its role as a defi hub in the Kosmos (ATOM) network, its liquidity pool, defi services, and facilitating over $30 billion in trading volume.
Aaron Kong, growth and strategy leader at Osmosis Labs, emphasized the importance of this integration to user experience and functionality within the defi ecosystem.
This integration aims to leverage the capabilities of the IBC protocol for secure and reliable cross-chain communication to facilitate IBC Everywhere. By choosing this approach, we aim to improve the security of our centralized bridge solution and foster collaboration across the Ethereum and Cosmos ecosystems.
In January, the Cosmos Hub community voted to set the minimum inflation rate for ATOM tokens to 0% in order to preserve the value of ATOM by reducing seller pressure and security overpayments. The vote passed with almost 95% support.
Previously, the community had capped ATOM annual inflation at 10% to preserve value, but this was impacting the profitability of staking. Despite lower staking yields, validators have been able to maintain profitability and adjust transaction fees to cover costs.
