The Tie Research
A Journey Through the Cosmos (ATOM)
By Treyce Dahlem
April 18, 2023
- Tendermint Core
- Cosmos SDK
- Inter-blockchain Communication
- Modularity: Create an ecosystem of modules that allow developers to easily spin up application-specific blockchains without having to code each bit of functionality from scratch
- Capabilities-based security: Capabilities constrain the security boundaries between modules, enabling developers to better reason about the composability of modules and limit the scope of malicious or unexpected interactions.
- Staking - The Hub’s staking module is one of the most efficient PoS implementations in the world, built on top of the Tendermint BFT consensus engine. ATOM holders can secure the chain by locking their ATOM in exchange for transaction fees
- Voting - Staking ATOM gives rights to participate in the open governance process, which governs the evolution of the network
- Interchain Accounts - Interchain Accounts are the accounts of the IBC-enabled world, allowing blockchains to securely control accounts on other chains over IBC. Users can access the entire Interchain through their single Cosmos Hub account. One account, for all the chains.
- Gravity DEX - The Cosmos Hub’s Gravity DEX will enable users to swap tokens coming from all over the interchain. This service improves on existing designs by combining AMM features (like that of Uniswap) with an orderbook-based model, providing a richer and more efficient trading experience.
- Gravity Bridge - Backed by billions of dollars of ATOM staked on the Cosmos Hub, the Gravity Bridge will be the most secure, efficient, and decentralized cross chain bridge to Ethereum. It will enable Cosmos assets to flow into the Ethereum ecosystem as ERC-20 tokens and, conversely, native ERC-20 tokens to flow in the Cosmos ecosystem.
- Interchain Staking - ATOM stakers will be able to validate chains that request it (called child-chains) on an opt-in basis, with their ATOM delegation as collateral. In exchange for securing child-chains, ATOM stakers will be rewarded with additional rewards.
- Chain Name Service - Just like domain names, blockchain names are needed and can be managed on the Cosmos Hub
- Staking Derivatives - Staking Derivatives will be an important primitive in the cross-chain Defi space. At their core, staking derivatives are claims against staked ATOM. Just like staked ATOM, staking derivatives accrue staking rewards - but unlike staked ATOM, staking derivatives are liquid, meaning they can be transferred.
- Transaction fees - Transaction fees collected on the Cosmos Hub are distributed to staked ATOM holders
- Newly created ATOM - The total supply of ATOM is inflated to reward stakers. ATOM holders that do not stake do not receive rewards, meaning their ATOM gets diluted over time.
- Designed for Cross-chain Assets - Osmosis is designed to be cross-chain native. It will have IBC built-in from day 1, allowing it to connect to the entire ecosystem of Cosmos chains.
- Customizable curves, fees, and other parameters - Nothing about the underlying structure of AMMs is hard-coded. Not only are key parameters like swap fees or token weights parameterizable for each liquidity pool, but entire components such as the curve algorithm and TWAP calculation are also fully-customizable as well.
- LP Governance - Governance must be a first-class process in AMM design so that liquidity is not forked away at the advent of every upgrade.
- Liquidity Provider Incentives - On top of native OSMO token incentives, Osmosis allows third parties to easily add incentive mechanisms to particular liquidity pools.
Stay up to date
Sign up to receive an email when we release a new post
