Picasso Network and Ethereum Forge New Path in DeFi Interoperability

In a groundbreaking collaboration with the Composable Foundation, the Picasso Network heralds a significant advancement in blockchain technology by integrating the Inter-Blockchain Communication (IBC) protocol with Ethereum. This innovative fusion paves the way for seamless asset and data transfers between the Ethereum blockchain and the Cosmos ecosystem, heralding a new era of cross-chain interoperability.

Henry Love, the Executive Director of the Composable Foundation, articulated the vision behind this initiative: “By bridging Ethereum with Cosmos via IBC and positioning Osmosis as the central liquidity nexus, we are charting a pioneering course in the DeFi landscape.”

This endeavor strives to bolster bridge operation security and widen the horizon for liquidity and innovation across blockchain networks, reflecting the team’s ambitious objectives set for the year. Osmosis has been designated as the principal conduit for Ethereum assets within the Cosmos network, a choice underscored by its pivotal role as a DeFi hub, its robust liquidity pools, comprehensive DeFi services, and its instrumental contribution to IBC’s trading volume, which boasts over $30 billion.

Aaron Kong, leading Growth & Strategy at Osmosis Labs, underscored the profound impact of this integration on enhancing user experiences and functionality within the DeFi ecosystem.

The initiative’s core aim is to champion the “IBC Everywhere” philosophy, leveraging the IBC protocol’s strengths to ensure secure and dependable cross-chain communication. This strategic choice seeks to elevate security standards beyond those of centralized bridge solutions and to cultivate partnerships between the Ethereum and Cosmos ecosystems.

In a notable development this January, the Cosmos Hub community cast a decisive vote to establish the minimum inflation rate of the ATOM token at 0%, a move designed to safeguard ATOM’s value by reducing selling pressure and excessive security costs. This resolution garnered nearly unanimous support, with a 95% approval rate.

This decision follows a previous consensus to limit ATOM’s annual inflation to 10%, aimed at preserving its value and influencing staking profitability. Despite the implications for staking yields, validators have managed to maintain profitability by adjusting transaction fees accordingly.

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