Cosmos Hub said that its newest proposal is now live on the community forum. This could mean that the platform’s approach to managing liquidity is changing. If the plan is accepted, 1 million ATOM tokens will be moved from the community pool to the Hydro committee.
The spread of the tokens will make the Cosmos ecosystem’s liquidity much better. It is planned that 500,000 ATOM tokens will be used to start an ATOM liquidity pool on the interchain auction system. To make the stATOM liquidity bucket, the last 500,000 ATOM will be staked with Stride, which is the most liquid staking tool in the Cosmos ecosystem.
Stride’s Liquid Staking Dominance
Stride is now the most significant name in liquid staking. It has almost 120,000 users and manages funds worth almost $100 million. It is expected that this move will use Stride’s large network and many skills to make Cosmos Hub’s liquidity situation even stronger.
Hydro, a tool for managing interchain liquidity, will be very important to this project. The Cosmos Hub is used as a platform for liquidity, governance, and community growth. Bidders and returns from putting liquidity into decentralized finance (DeFi) protocols create value. Cosmos Hub says that Hydro works with a set of smart contracts that projects can use to set up protocol-owned liquidity. This lets DeFi methods bid on money that is available. The Cosmos Hub group handles these transactions, and as ATOM’s value rises, everyone who owns ATOM benefits.
Thyborg, an informal systems strategist and well-known contributor to Cosmos Hub, pointed out that this idea aims to bring in new money before the Hydro platform launches. This strategic move is meant to improve the platform’s ability to handle liquidity and give it an edge in the DeFi area.
Cosmos Hub’s own coin, ATOM, is already known for its value in the market. A significant portion of its total value locked (TVL) is on Astroport, which is a key Cosmos market mechanism. It’s the second most liquid native currency on Osmosis right now. DefiLlama, a tool for following DeFi, says that Astroport’s TVL is about $28.89 million right now and more than $1.3 billion so far this year.
Also, 15 decentralized apps (dApps) in the Cosmos community use ATOM. Some of these projects are the well-known Canto, Injective, Archway, Dymension, and Kava. It’s clear that ATOM is an important part of the environment and that it can grow and fit in better with other parts of it.
