Cosmos Hub has submitted a governance proposal seeking community approval to transfer 1 million ATOM to liquidity protocol Hydro.
The platform announced Cosmos Hub’s (ATOM) proposal is live in the community forum. If approved, Cosmos Hub will transfer 1 million ATOM tokens from its community pool to the Hydro committee.
According to the proposal, 500,000 ATOM will seed an ATOM liquidity pool on the interchain auction protocol. The other 500,000 ATOM will be staked with liquid staking platform Stride to seed the stATOM liquidity bucket.
Stride, the Cosmos ecosystem’s top liquid staking platform, boasts nearly 120,000 liquid staking users. At the time of writing, the protocol’s assets were close to $100 million.
What is Hydro?
Hydro is an interchain liquidity management platform leveraging the Cosmos Hub for liquidity, governance, and community growth. It generates value from bidders and through yield accrued by deploying liquidity into DeFi protocols.
Cosmos Hub describes Hydro as a set of smart contracts allowing projects to deploy protocol-owned liquidity. These deployments enable DeFi protocols to bid for liquidity and are governed by the Cosmos Hub community. Value from these transactions benefits all ATOM holders.
Thyborg, a contributor and Informal Systems strategist, outlined the proposal as introducing new liquidity ahead of the Hydro platform launch. Hydro is currently in testnet.
Deployment of ATOM tokens
ATOM is the second largest native token for liquidity on Osmosis and accounts for a significant portion of the total value locked on Astroport, a Cosmos liquidity protocol.
According to DefiLlama, Astroport’s TVL is approximately $28.89 million, while volume year-to-date is over $1.3 billion. The ATOM token is also deployed across 15 dApps in the Cosmos ecosystem, including Canto, Injective, Archway, Dymension, and Kava.
