A little bit of chit-chat
Cardano is joining The Interchain by implementing an IBC sidechain that will allow other sidechains to connect with the 115 IBC-enabled live chains.
This is how Cosmos behaves.
A recent study by the S16RV team on Cosmos user behaviour has yielded several significant insights into the ecosystem's user preferences and activities. Here are some of the findings:
Cosmos Hub and Consumer Chains Dominance: Among the top seven chains mentioned by users, three are either the Cosmos Hub itself or its consumer chains. This highlights a significant engagement with the central components of the Cosmos ecosystem.
Absence of Certain Chains: Notable chains such as Noble, Saga, Celestia, dYdX, and Axelar were not frequently mentioned. This absence raises questions about either the sample selection or the marketing reach of these chains. Also, another point to take into account is the effort of some of this networks to rebrand away from being perceived as Cosmos chains.
UX is the key: The research highlights that UI/UX is the most critical user factor when choosing between blockchains with similar functionalities. Notably, security features and the amount of funds raised by a chain are lower on the priority list, suggesting that while these aspects are essential, they do not weigh as heavily in user decision-making as usability does. This trend aligns with the observation that users often prioritize user-focused platform features, such as two-factor authentication (2FA), over deeper chain security concerns.
Cosmos loves staking: The study delves into the primary activities of Cosmos users, revealing that staking is the most prevalent activity, followed by Inter-Blockchain Communication (IBC) transfers, token swaps, and regular transfers.
What transfer?: An interesting point of discussion is the overlap and differentiation between IBC transfers and regular transfers, indicating a need for clearer distinctions in user activities. Additionally, over 50% of users engage in decentralized finance (DeFi), liquid staking, and modular blockchaining, reflecting the diverse use cases within the ecosystem. The preferences for wallets are also clear, with Keplr wallet being the frontrunner, closely followed by Leap Wallet.
You can read the full study here.
Optin
A proposal has been posted on the Hub forum to launch Elys Network as an opt-in consumer chain under the Interchain Security (ICS) framework. Due to technical limitations involving the chain_id, this launch cannot occur permissionlessly. Validators are not required to run the chain and can opt in or out anytime.
Elys Network is a DeFi Layer-1 appchain within the Cosmos Hub, aiming to offer a seamless trading experience comparable to centralized exchanges while providing the benefits of decentralized finance (DeFi). It supports cross-chain asset trading through chain abstraction and unified liquidity, connecting ecosystems such as Bitcoin, Solana, Avalanche, and EVM chains. The network focuses on defragmenting the Web3 landscape by unifying liquidity and simplifying user experience, bridging the gap between Web2 and Web3. Features include one-click Cosmos liquid staking, enabling users to stake Proof-of-Stake assets and earn passive rewards easily
The incentive structure for validators and their stakers opting into the Elys Network includes a 30% airdrop increase for a one-year commitment, 25% of staking rewards from the Cosmos Hub, amounting to 2 million ELYS for the first year, and 15% of protocol-retained revenue in USDC distributed to opt-in validators and their stakers.
A little bit of interchain content.
Wrap Up
If you like our newsletter, share it with your friends so they can also stay informed about the latest and greatest (and sometimes not so great) of the Cosmos ecosystem.
In the meantime, feel free to follow us on Twitter @zkv_xyz and visit our website to stake with us.