A quick peek at 10 reasons why the Cosmos ecosystem deserves some attention in the near future

Author: Curious J, encrypted KOL Compiler: Felix, PANews

With the rise of perpetual contracts, the launch of new chains, and the upgrade of token economics, the tepid Cosmos is under constant cultivation in the bear market. Will the next round of bull market become the place where 100-fold returns will explode?

The best investments are those that no one talks about. The Cosmos ecosystem has been depressed for too long, and it is currently the easiest field in the encryption industry to achieve a hundred times. Recent developments suggest that fundamentally strong and sustainable narratives should benefit from the impending bull run. Here are 10 reasons why the Cosmos ecosystem is worth watching in the near future.

Perpetual Contract****Rising

This year alone, derivatives trading volume exceeded $400 billion, 44% of which came from dYdX. The upcoming dYdX v4 helps illustrate the enormous power that Lisk theory holds. *(Note: *Applications of Chain Theory are as every protocol built on a blockchain wants to scale, they will seek to transform into a sovereign chain, giving them full control over their protocol without Rely on the original L1.)

Related Reading: dYdX Token Economic Model Analysis and Potential Solutions

Native Liquidity

In DeFi, native liquidity is king, and native liquidity can not only create seamless on-chain activities, but also eliminate bridging risks. Cosmos does not have a native stablecoin, but that is about to change.

Recently, Tether’s stablecoin USDT has been integrated into the Kava blockchain, which not only consolidates Tether’s accumulated dominance in the field, but also introduces new native liquidity to Cosmos.

There is also Protochain, which aims to introduce new, more native liquidity to Cosmos. Chains like Agoric are focused on scaling their algorithmic stablecoins IST and Noble, who issue native USDC. Liquidity on Cosmos is a matter of when, not if.

Native Flow PropertiesPressModule

Through this module, users can automatically unlock 25% of staked ATOM or Cosmos as liquid staking derivatives. This innovative feature significantly increases the liquidity of Cosmos assets, especially considering that most assets are currently staked. (Note: This year At the beginning of May, Cosmos Hub has passed a new proposal on liquidity staking, which will replace the existing Cosmos Hub staking, distribution and Reduction module. ATOM holders are no longer subject to the previous 21-day lock-up period, but can liquidly mortgage their ATOMs, enjoy pledge benefits on the one hand, and use ATOMs for other use cases on the other hand.**)

Safety

One of the main advantages of AppChain is the ability to secure and control its own block space. By utilizing various economic zones, Cosmos can economically secure new or established chains.

Some key security initiatives are currently being implemented and are being developed:

• Babylon Chain brings the same security as the Bitcoin chain to the POS chain (related reading: Interpretation of the middleware Babylon Chain: Inspired by Eigenlayer, borrowing “Bitcoin security” to other POS chains)
• Cosmos and interchain security
• Osmosis mesh security

These solutions are all designed to make Cosmos scalable, secure, and cost-effective.

Token Economics Upgrade

Cosmos tokens have undergone a major shift. At present, we have bid farewell to the era of extremely high returns on annual interest rates, and are now focusing on the narrative of real returns. Osmosis has recently upgraded the OSMO token to fully adapt to this market change.

ATOM is the largest Cosmos token by market capitalization and has been actively working to return value to holders and stakeholders. Their focus areas include:

• reduce inflation
• Improve ICS value
• Liquidity owned by the protocol
• Extend Subdaos
• Expansion of the community pool

** INTEROPERABILITY **** ENHANCEMENTS **

IBC is expanding its reach beyond the Cosmos ecosystem, for example to ecosystems such as NEAR Protocol, Polkadot, and Avalanche. This development benefits not only the user, but also the builder, as it makes communication and development easier.

Also saw Axelar Network’s general purpose messaging gain traction on various EVM chains. All of this is to facilitate greater liquidity across the ecosystem.

Composabilityincreasedstrong

Excellent builders continue to improve the communication experience between users and builders, and have been live so far:

• squid: the ultimate multi-chain trading tool
• Skip Protocol: use MEV
• TFM: DEX Aggregator on Cosmos

Interchain BD

In many ecosystems, business development efforts are fragmented and approaches to growing market share vary. Cosmos takes a different approach. Through initiatives such as Osmosis Grants and the ATOM Accelerator, they collaborate to advance the growth of the universe.

New chain goes online

Ongoing interest in Lisk theory and its benefits for users as well as builders for deeper composability and customization. coming soon:

• Bera Chain (Related reading: A Quick Look at Archway, a value capture chain that will be publicly sold on Coinlist)
• Archway (just launched)
• Duality Labs launched as a consumer chain

MODULAR

For those attending last week’s Modular Summit in Paris, modularism is thriving. This trend continues with the upcoming release of Celestia on Cosmos. This launch will facilitate the seamless deployment of numerous chains.

If you think that the Cosmos ecology is dead, then you obviously have not paid attention to the latest developments in the Cosmos ecology. Liquidity will come, apps are built for the long term, and users will follow. Cosmos offers functionality that dApps on Ethereum cannot.