10 reasons to tell you why the Cosmos ecosystem deserves attention

Original Author: Curious J, encrypted KOL

Original Compilation: Felix, PANews

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.

The Rise of Perpetual Contracts

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: The application chain theory is that as every protocol built on the blockchain wants to expand, they will seek to transform into a sovereign chain, giving them full control of their protocol, without relying on the original L1.)

Raw 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 now been integrated into the Kava blockchain, not only solidifying Tether's accumulated dominance in the space, but also introducing 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 Liquidity Staking Module

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: At the beginning of May this year, Cosmos Hub has passed a new proposal on liquid staking, which will replace the existing Cosmos Hub staking, allocation and reduction modules with the liquid staking module. ATOM holders are no longer subject to the previous Instead of the 21-day lock-up period limit, you can liquidly mortgage your ATOMs, enjoy the 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 security like Bitcoin chain to POS chain
• 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.

Composability enhancements

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
• Archway (just launched)
• Duality Labs launched as a consumer chain

Modularization

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.