Hydro: Q1 2025 progress report
As committed in our January funding proposal , the Hydro Team will provide quarterly progress reports. Our primary goal is expanding the size and value of ATOM deployments processed through the application. Additionally, we aim to increase the number of protocols participating in the auction process. Together, these efforts drive progress toward our third goal - maximizing payouts to ATOM stakers and making sure their investment pays off . Here’s how we performed on these goals in Q1 2025: Metric | Value | Value of deployments | 983,754 ATOM | Number of deployments | 20 | Number of bids | 32 | Number of protocols | 13 | Total tributes paid out | $14,005 | • numbers include round 5 bids & tributes (value as of 28-Mar) The trendline is strongly positive, with nearly all metrics increasing consistently each round, culminating in Round 5 as our most successful to date. On the technical side, our priority is to automate the deployments & clawbacks and open up new safe use cases for deployments. This is what we worked on over the past 3 months: Feature | Description | Stream | Stream is an…
Excerpt (1191 of 4991 characters). Read the whole post on the forum ↗
We would like to thank the Hydro team for this clear and informative Q1 progress report. It’s encouraging to see a project that not only delivers on its mandate but also maintains a forward-thinking and sustainable approach. Thyborg: Our primary goal is expanding the size and value of ATOM deployments processed through the application. Additionally, we aim to increase the number of protocols participating in the auction process. This strategic focus is perfectly aligned with what the Cosmos Hub ecosystem needs: deeper liquidity, higher ATOM utility, and broader protocol participation. The attention given to increasing both value and adoption speaks volumes about the maturity and ambition of the team. Thyborg: At the current burn rate, we expect this funding to cover expenses beyond the anticipated 6 months mandate planned in Prop 986 . Thyborg: Similar to the Hydro Team DAO, we expect the funding received by Hydro Grants DAOs to sustain costs beyond Q2. By then, our goal will be to transition to using the Hydro Treasury rather than requesting additional funding from the Hub’s community pool. We particularly appreciate the…
Excerpt (1194 of 2355 characters). Read the whole post on the forum ↗
Hm.
Can you clarify your reasoning/methodology and any other metrics underlying your claim of “strongly positive trendline”?
Based on the reported figures above, not seeing it.
And you don’t provide a breakdown of round-over-round improvement in bid density, payout ratios etc
Show, rather than tell.
We’ve been working with Numia to make round-by-round data easily available: https://hydro.cosmos.network/metrics/ The 0.8% is a decent estimate of the tribute yield already distributed to Hydro participants (because it’s paid upfront) but that’s just one part of Hydro’s revenue. There’s also deployment yield (swap fees, lending income, external incentives) which hasn’t been distributed yet - it’s collected at the end of each deployment and sent to the Hydro treasury. Most deployments run for 3 months, so we don’t have a large dataset yet, but I expect the average yield for LPs on ATOM derivatives and single-sided liquidity to be around 5% average. With Vortex , Hydro will start entering volatile pools, and we should start seeing double-digit APRs. I’ve been testing Magma in preparation for integration and my ATOM-USDC vault is above 30%. It’s worth noting that 0.8% tribute APR on deployments translates to something like 16% for Hydro participants, so they double their staking APR. Also, because tributes are paid in various tokens (STRD, SHD, ELYS, NLS, etc.), the actual round-by-round APR depends on their relative price to ATOM at the end of each round. So It’s not a…
Excerpt (1194 of 3343 characters). Read the whole post on the forum ↗