⚛️ Finally, it's here
A new opportunity.
⏰ Quick read
🤝 Ethereum x Solana: Eclipse launched its mainnet. It's Ethereum's first Solana Virtual Machine (SVM) Layer 2, utilizing Ethereum for settlement, SVM for execution, Celestia for data availability, and RISC Zero for ZK fraud proofs.
🏆 DA Status: Celestia leads data availability (DA) layers with $745.47M TVS and $2.5B slashing stake, followed by Meeda and NEAR DA. EigenDA and Avail have lower usage, with Avail holding notable slashing stake at $87.04M.
👌 No major issues: Ottersec's preliminary audit of the Cosmos SDK Liquid Staking Module (LSM) found no major issues, but noted a rare bug affecting delegation tokenization. A second audit by Zellic is planned.
📰 On the Headlines: A new chance for ATOM
In a new effort to revitalize the Cosmos Hub, Hydro's pilot has launched. Here's a TL;DR on this new mechanism.
What's Hydro? Hydro is a new liquidity allocation mechanism designed to increase the utility of staked ATOM within the Cosmos ecosystem. Developed by Informal Systems and funded by the Cosmos Hub, Hydro aims to address inefficiencies in ATOM liquidity distribution by allowing stakers to support projects while maintaining their staking rewards.
How it works? Hydro works by enabling ATOM stakers to lock their tokens and vote for projects requesting liquidity. Participating projects bid for ATOM by offering "tributes" — rewards distributed to voters. During each round, users vote for one project, and if the project’s bid passes a 5% vote threshold, the provided ATOM liquidity is deployed, and tributes are shared among the voters.
Pilot mode? In its pilot phase, Hydro enforces conservative caps: individual wallets are limited to 200 ATOM, while the total locked ATOM cap is set at 20,000. The pilot aims to validate the mechanics of Hydro, with additional audits planned to ensure security before scaling up the protocol.
Who are the bidders? The following projects are participating in the Hydro pilot round, bidding for ATOM liquidity:
- Shade Protocol: ATOM/stATOM Liquidity Pool on Shade Swap (26%)
- Drop: Adding Liquidity to Astroport & Osmosis LP (17%)
- Nolus: Liquidity Provision for stATOM LP (15%)
- Neptune Finance: Lending Liquidity Provision (11%)
- Demex: ATOM Lending Supply Proposal (10%)
- White Whale: ATOM LST Liquidity & Terra LP Alliance (8%)
- Margined Protocol: Redemption Rate Arbitrage Liquidity (8%)👩🚀 Into the Outer Space: WHIR
WHIR is a new Interactive Oracle Proof (IOP) for Reed–Solomon proximity testing, optimizing verifier efficiency in hash-based SNARGs. It reduces query complexity and verification times, supporting faster polynomial testing and enhanced performance in recursive proof systems.👋 Ending note: We hope you like our new format and angle. If you have any feedback or suggestions, feel free to leave them here.