The Cosmos Hub has presented a governance proposal to the community, requesting consent to transfer 1 million ATOM to the Hydro liquidity protocol.
On July 26, the platform announced that the ATOM proposal for the Cosmos Hub is now active on the community forum. The Cosmos Hub will allocate 1 million ATOM tokens from its community pool to the Hydro committee upon community approval.
Therefore, a total of 500,000 ATOM will be assigned to initiate an ATOM liquidity pool on the interchain auction protocol. Simultaneously, the remaining 500,000 ATOM will be deposited as stakes on Stride’s liquid staking platform to establish the initial liquidity reserve for stardom.
Stride is the leading liquid staking platform in the Cosmos ecosystem, with an impressive user base of about 120,000. Currently, the protocol’s assets are approximately $100 million.
What is Hydro?
Hydro is a framework for managing liquidity amongst different chains, which utilizes the Cosmos Hub for liquidity, governance, and community expansion. The protocol generates value by collecting funds from bidders and earning returns by investing the liquidity in decentralized finance protocols.
Hydro operates by utilizing a collection of intelligent agreements known as Cosmos Hub, which enables projects to access and implement liquidity held by the protocol. DeFi protocols can compete for liquidity through these installations, which the Cosmos Hub community regulates.
The transactions generate value that is distributed to all holders of ATOM. Thyborg, a strategist at Informal Systems and contributor to the Cosmos Hub presented a plan to introduce a fresh infusion of liquidity prior to the launch of the Hydro platform. Hydro is presently in the testnet phase.
Deployment of ATOM Tokens
The ATOM tokens are now deployed as the second largest native token for liquidity on Osmosis. They constitute a substantial fraction of the entire value locked on Astroport, a Cosmos liquidity mechanism.
According to DefiLlama, Astroport’s Total Value Locked (TVL) is currently about $28.89 million, while the volume for this year is over $1.3 billion. The ATOM coin is utilized in 15 decentralized applications (dApps) within the Cosmos ecosystem, such as Canto, Injective, Archway, Dymension, and Kava.
