As a researcher with a background in blockchain technology and decentralized finance, I am thrilled about the recent success of Proposal #912 within the Cosmos network. This transformative initiative, which introduces liquid staking to the network, is a significant milestone for Cosmos and demonstrates the community’s unwavering commitment to innovation and improvement.
The Decentralized Cooperation Foundation (DCF) declared the accomplishment of Proposal #912, an innovative undertaking in the Cosmos network – a prominent decentralized system comprised of interconnected, autonomous blockchains – which enhances liquidity and economic stability.
Proposal #912: Milestone for Cosmos Network
Proposal #912, which has recently gained approval from the Cosmos community, establishes a strong foundation for liquid staking. With this new framework, users can trade their staked assets as if they were regular tokens, thanks to derivative tokens. This development significantly boosts the network’s liquidity. The approval of this proposal underscores the community’s dedication to constant advancement and refinement.
As a researcher studying the potential of blockchain technology, my primary goal with this proposal is to enhance the functionality of staked assets by increasing their liquidity. Conventional staking requires locking away tokens to ensure network security, which is essential but limits the use of these assets. In contrast, I propose the adoption of liquid staking, a method that allows for the continued utilization of staked assets in various financial transactions. By doing so, we can significantly improve both the efficiency and overall liquidity of these valuable resources.
Implementation and Initial Phase
Proposal #912 suggests using 188,768 ATOM from the Cosmos Community Pool for staking on Stride and Persistence platforms. This move is predicted to enhance capital efficiency by approximately 18%. The estimation is derived from the enhanced functionality of staked assets, enabling them to engage in various financial activities without jeopardizing network security. If the preliminary phase achieves success following a three-month trial period, an extra 6% of ATOM tokens will be allocated, increasing the total to 10%.
The Role of the Inter Stable Token (IST)
At the heart of Proposal #912 lies the essential role of the Inter Stable Token (IST), which is crucial for improving liquidity and preserving economic balance within the Cosmos ecosystem. The proposal outlines the implementation of liquid-staked assets to generate IST from Inter Protocol, with a collateralization ratio of 5:1. The objective is to distribute these tokens among various liquidity pools and exchange half of the IST for USDC. Notable platforms such as Osmosis, Astroport, Axelar, Shade Protocol, and Quasar Finance will receive these tokens, resulting in a projected overall enhancement of efficiency by approximately 18%.
DCF’s Commitment to Decentralization and Innovation
Ric Shreves, President of the Decentralized Cooperation Foundation, says:
“The approval of proposition #912 demonstrates Cosmos community’s dedication to innovative decentralized rule-making. We take pride in endorsing projects in line with our goal to champion user-friendly, effective, and fair blockchain technologies.”
Future Outlook
Proposal #912’s approval showcases the forward-thinking and inventive mindset of the Cosmos community. The anticipated success of this proposal serves as a blueprint for future blockchain projects, fostering more creativity within the Cosmos network. This initiative aims to enhance liquidity and optimize capital usage, ultimately contributing additional revenue to the Cosmos Hub’s communal pool and advantageously impacting all ecosystem members.
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2024-05-16 23:18