The Osmosis IBC channel is now functional.
The Inter Blockchain Communication (IBC) channel linking the Terra Classic network to Osmosis, the popular Cosmos decentralized exchange, is now open per a tweet from the Terra Rebels, an independent development group for the network.
— Terra Rebels (@TerraRebels) December 12, 2022
Rex Harrison, AKA Rexzy (@RexYellerBelly,) a senior member of TerraCVita, a competing independent developers group, also confirmed the development, sharing a screenshot of a successful transaction.
— Rexyz (@RexYellerBelly) December 13, 2022
It is worth noting that the Osmosis IBC reopening is the result of a proposal from Terra Classic core developer Edward Kim to speed up the timeline of the IBC reopening for Osmosis, Juno, and Crescent. Instead of reopening these channels with the v23 upgrade scheduled for sometime this month, developers opted to do so earlier to keep up with the changes in the Cosmos ecosystem.
Notably, with the IBC channels reopening, users can access trapped Terra Luna Classic (LUNC) and TerraUSDClassic (USTC) liquidity, most of which lie on Osmosis. For context, the channels connecting the Terra Classic network to other Cosmos chains were closed during the ecosystem collapse in May to reduce the impact of impermanent losses. Per the proposal from Kim, developers ought to have reopened the IBC channels by December 5.
Unsurprisingly, the community has received the confirmation that developers have successfully reopened the channel to Osmosis with excitement. However, a few persons have encountered challenges while trying to perform transactions. For example, Cosmos Human (@EU_FDA) noted that he could not transfer LUNC from Osmosis to another wallet. Kayak King (@moorlandthicket) noted that he is yet to receive USTC transferred from Osmosis to his Terra Station wallet.
It bears mentioning that the push to reopen the IBC channels to Osmosis inspired a couple of proposals to maximize LUNC burns. The first proposed an increase in the on-chain burn tax parameter, while the second pushed to get Osmosis which served as the primary off-chain DEX for the LUNC community before the crash to implement the burns off-chain.