Hydro: An auction platform for liquidity exports
Hydro is a bidding & governance platform for the efficient deployment of liquidity across the Interchain. It is an important piece of the previously introduced ATOM wars strategy and a response to the biggest challenge of the ecosystem: token liquidity. Hydro allows projects to bid for deployments of ATOM (and other tokens) liquidity under the control and for the benefit of all ATOM holders. The exact mechanics of Hydro’s auction and governance systems are specified in the following litepaper: Hydro: An auction platform for liquidity exports Hydro provides key features for the streamlining of liquidity access to both Interchain (Cosmos) and non-Interchain projects and chains. These features include token locking, voting rights, bidding rules, voting rules, and fund allocation rules. Hydro is a key component of the concept of “ATOM wars” but may also facilitate the deployment of other tokens (Celestia & Stargaze are examples) Community Pools : While the Cosmos Hub will likely be the first community pool to provide an ATOM “loan” to Hydro to coordinate exports, Hydro has been designed in a way that allows other community pools to participate and contribute liquidity…
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Great idea.
Question…can we slowly reclaim all the ATOM that has been used as POL and do it through hydro instead?
Otherwise, the chains and apps with an obscure head start would even really need to use this.
Yes that’s the plan. Brace for a couple of high-DPS governance props in the coming months
Existing atoms have many similar tokens, stATOM rATOM sqAtom qAtom stkATOM. If [re-locking] is just to obtain a governance token that cannot be traded, you can use other names, such as Hub vHUB, to avoid value confusion.
for example
hATOM > Hub
In addition, it would be better if the [Pledge] option can be changed directly, without having to go to another box to [Pledge Again], Hydro handles the bidding matters
[Pledge] More options, 4 pledge interest rate annualized options
According to Hydro rules
21 days > Get interest rate and 1 governance hub
3 months > Get interest rate and 1.5 governance hub
6 months > Get interest rate and 2 governance hub
12 > Get interest rate and 4 governance hub
Only by making governance simple and easy to understand can we get twice the result with half the effort, and at the same time, [long-term pledgers] can [maximize their benefits]
In addition, if stATOM is locked again, will it lose the liquidity and scalability of DEFI, and will it have an impact on strd? After all, stATOM is unlocked to participate in transactions and use DEFI.
Philipp here from ERIS Protocol. Why use stATOM for this and not either make it flexible enough to allow any ATOM LST to participate, or launching a Cosmos Hub owned LST? Here is a proposal, why not allow ERIS to launch ampATOM (can also be whitelabeled in anyway the Hub wants - e.g. lsATOM) on the Hub using CosmWasm, with a permanent / fixed 0% commission and signing ownership to Cosmos Hub, making it a public good of the Cosmos Hub, without paying the high Stride Tax. Contracts are fully audited (multiple times) and in production with significant TVL for over 2 years. This is hugely beneficial to cosmos hub users and keeping the Hub impartial. Otherwise I am in big favor of using open market / bribe based approaches, especially with ERIS being the pioneer of gauge models in Cosmos. But it is not open market if you enforce a single LST to be used. Honestly even using ATOM is better for ATOM stakers, as it reduces the staked amount and projects would need to cover the opportunity cost of bribing for liquidity, putting money where their mouth is. TLDR: Options to make ATOM wars more open and inclusive: • Allow any ATOM LST or ATOM to be used • Allow ERIS to launch…
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Appreciate the comment. I’m planning do a write-up on this topic, but the short answer is that we want to allow all the staked ATOM to participate in Hydro. It is still unclear if its easier to do this using LSM shares, or to update the hub staking module.
Using stATOM is a way to move forward in the meantime. Stride is the only LS protocol with a partnership agreement with the Cosmos Hub, and its an opportunity to send a clear signal that “hub alignment” is not just an empty word.
Note that Eris & others can benefit from Hydro from the get-go by bidding in the ATOM bucket and liquid-staking the allocation through their respective protocols
Frankly that doesn’t even sound true
I like this, sounds and feels more like $ATOM focused proposition rather than another coin (stride chain) benefitting from it, further fragmentizing and diluting demand for $ATOM!