Terra Classic IBC channel reopening to Osmosis sees promising transaction volume on the first day.
Terra Classic community members have transacted over $111k via the Inter Blockchain Communication channel between the Terra Classic network and Osmosis on the first day of reopening, per a tweet from community influencer Classy (@ClassyCrypto_).
— Classy 👾 (@ClassyCrypto_) December 14, 2022
It is currently unclear if this involves only trapped liquidity flowing from Osmosis back into the Terra Classic chain or whether Terra Classic community members are also actively using the popular Cosmos decentralized exchange to swap tokens and engage in economic activity on other chains.
Per previous reports, Osmosis held a lot of trapped Terra Luna Classic (LUNC) and TerraClassicUSD (USTC), made inaccessible during the Terra ecosystem collapse in May. At the time, Terraform Labs closed off the IBC channels linking the chain to the popular DEX to prevent impermanent losses.
Osmosis in the past served as the primary source of liquidity off-chain for the Terra Classic network, as highlighted by Cosmos Capybara (@CosmosCapybara) in a recent proposal to seek Osmosis support for off-chain LUNC burns. The Terra Classic community provided an endless stream of fees, while Osmosis offered deep liquidity for token swaps and sophisticated yield farming techniques.
Developers successfully reopened IBC channels to Osmosis on December 13, as reported by The Crypto Basic. Notably, the reopening came earlier than initially planned as developers opted to speed up the timeline to keep up with changes in the Cosmos ecosystem.
Popular Terra Classic community member CEO_44 (@CEO_44), commenting on the transaction volume, described it as a “great start.”
“Great start!” CEO_44 tweeted. “Opening up LUNC IBC channels is like opening up a major airport or highway to a large city. The city’s economy can now grow faster.”