BlocksInform
Distributed Exchange (DEX) Osmosis will upgrade to v14.0.0, called. “Neon,” in line with a broader plan to expand product integrations and make cross-chain trading more lucrative for traders, developers said Wednesday.
The upgrade to 7937500 on January 23 at 4 p.m. UTC will include a number of important osmosis upgrades.
A key feature of the upgrade is the implementation of the Time Weighted Average Pricing (TWAP) geometrical method in the Osmosis liquidity pools. In finance, a twap is the average price for a fixed-term asset. A TWAP strategy is often used to minimize a large order’s impact on the market by dispersing the large order into smaller quantities and executing them at regular intervals over time, as per Binance.
The above will enable osmosis-based protocols to choose between two pricing mechanisms that will be relevant to the protocol in order to provide users with "concentrated liquidity" – a design which increases the efficiency of the capital using an index with improved rewards for the liquidity pools (lp).
Cash pools are tokens that a user provides to a dex, This encourages users to become cash providers in return for a portion of the transaction fees and free tokens.
The upgrade would also improve price efficiency and avoid liquidity attacks using upward price manipulation. Such manipulation has previously resulted in bad actors making off with as much as $100 million by manipulating DEXs.
Furthermore, Neon will introduce a downtime detection module, which will detect if the Osmosis network is out of action or unavailable for use and prevent improper liquidations on other lending protocols that rely on Osmosis’ pricing data.
Osmosis developers have said it is important to rapidly deploy this upgrade to pave the way for the upcoming Mars protocol integration, a market for loans and loans.
Users will not be able to use osmosis DEX and gating and governance functionality will also be unavailable until the end of the upgrade.
The native Osmosis OSMO token has declined by 3% over the last 24 hours, which is consistent with a more general decline in the market. The protocol currently holds $160 million in locked chips, 90 per cent less than the record high of $1.6 billion in 2022.
