Cosmos Hub has submitted a governance proposal searching for community approval to transfer 1 million ATOM to liquidity protocol Hydro.
The platform said on July 26 that Cosmos Hub’s (ATOM) proposal is live in the neighborhood dialogue board. If the community approves the intention, Cosmos Hub will transfer 1 million ATOM tokens from its community pool to the Hydro committee.
Accordingly, 500,000 ATOM will be used to seed an ATOM liquidity pool on the interchain public sale protocol. Within the intervening time, the diversified 500,000 ATOM will be staked with liquid staking platform Jog to seed the stATOM liquidity bucket.
Jog is the Cosmos ecosystem’s prime liquid staking platform, at the 2d boasting objective about 120,000 liquid staking customers. On the time of writing, the protocol’s resources were shut to $100 million.
What’s Hydro?
Hydro is an interchain liquidity management platform that leverages the Cosmos Hub for liquidity, governance, and community explain. The protocol generates price from bidders and by yield accumulated by deploying liquidity into decentralized finance protocols.
As for the design in which Hydro works, Cosmos Hub says it’s a situation of good contracts that initiatives can faucet into to deploy protocol-owned liquidity. These deployments enable DeFi protocols to convey for liquidity and are governed by the Cosmos Hub community. Payment accumulated from these transactions advantages all ATOM holders.
Thyborg, a Cosmos Hub contributor Informal Methods strategist, outlined the proposal as introducing a brand fresh liquidity injection sooner than the Hydro platform birth.
Hydro is at the 2d in testnet.
Deployment of ATOM tokens
ATOM is at the 2d the 2d largest native token for liquidity on Osmosis, whereas it accounts for a huge piece of the full price locked on Astroport, a Cosmos liquidity protocol.
Per DefiLlama, Astroport’s TVL at the 2d stands at approximately $28.89 million, whereas volume 365 days-to-date is over $1.3 billion.
The ATOM token is also deployed correct thru 15 dApps in the Cosmos ecosystem, including Canto, Injective, Archway, Dymension, and Kava.
