Cosmos Hub Proposes 1M ATOM Allocation To Hydro For Enhanced Liquidity
In Brief
Cosmos Hub announced the initiation of a draft governance proposal to seed Hydro, an interchain auction platform for liquidity exports.
Ecosystem of interconnected blockchains comprising the Cosmos Network (ATOM), Cosmos Hub announced the initiation of a draft governance proposal to seed Hydro, an interchain auction platform for liquidity exports.
Hydro is promoting a unified and strategic approach to liquidity management. It enables projects to bid for the deployment of protocol-owned liquidity, which is managed for the benefit of all ATOM holders.
The proposal also recommends transferring 1 million ATOM from the Cosmos Hub community pool to the Hydro committee, which includes distributing 500,000 ATOM to establish an ATOM liquidity bucket and 500,000 ATOM to liquid stake with Stride and create an stATOM liquidity bucket.
Native ATOM is utilized in liquidity pools throughout the ecosystem. On Astroport, ATOM represents a large portion of the total value locked (TVL) and is among the top tokens in terms of trading volume. Additionally, native ATOMs are employed in 15 other decentralized applications (dApps) within the Cosmos ecosystem, encompassing platforms such as Archway, Canto, Dymension, Injective, Kava, and UX, among others.
stATOM is issued by Stride, a leading liquid staking provider within the Cosmos ecosystem. Stride has nearly 120,000 liquid staking users and manages close to $100 million in assets. It is currently one of the first two blockchains utilizing the Cosmos Hub’s interchain security product.
Hydro’s Performance To Determine Future Proposals
Hydro consists of a series of smart contracts that are already deployed on the Neutron testnet and have been audited by Oak Security a public report will be made available here once it is published. If Hydro’s performance is deemed satisfactory, additional proposals for further transfers and other tokens may be presented. Conversely, if the performance is found to be inadequate, the entire amount will be returned to the community pool.
Cosmos represents a decentralized network composed of independent, parallel blockchains, each utilizing Byzantine Fault Tolerance (BFT) consensus algorithms. It provides developers with tools to create interoperable and scalable applications and employs the Inter-Blockchain Communication (IBC) protocol for blockchain interactions and features a modular framework for constructing custom blockchains.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
