Home Blockchain Cosmos Internet of Blockchains (ATOM) DeFi Soon Opportunity to use Gravity Dex and Osmosis

Cosmos Internet of Blockchains (ATOM) DeFi Soon Opportunity to use Gravity Dex and Osmosis

Atom DeFi Cosmos

Gravity is the bridge between EVM Chains like Ethereum and Cosmos SDK based blockchains.  Gravity enables token transfers from Ethereum to the Cosmos Hub and back by locking up tokens on the Ethereum side while minting equivalent tokens on the Cosmos side.

Governance proposal #48 on the Cosmos Blockchain:  “New Cosmoshub proposal to increase the inflation rate change variable as for the network to better protect itself against unbondings & react faster when ATOM bonding ratio drops below the 66% goal is in voting period.”

What is the Proposal about Inflation Rate Change Correction per Cosmos Big Dipper?

The purpose of changing the network’s inflation rate is to protect it from unbonding shocks that threaten to compromise the security of the network. When the bonded ratio gets below the goal bonded ratio (currently at 66% on the hub) the inflation rate & effective yield of staked atoms goes up in order to incentivize holders to bond new ATOM’s, providing additional security to the network.

Inversely, if we regain a desired amount of staked tokens, the yield will drop, decreasing effective yields for all delegators. Ideally the inflation rate starts changing fast, optimizing network security over monetary hardness. To figure out what an appropriate selection for the cosmos hub would be, I created excel sheets to run through all the different scenarios to find what value made the inflation rate react in an optimal manner.

I came to the conclusion that 1 (AKA 100% per year is the maximum slope of the inflation curve) gave the most ideal characteristics, with the added benefit of simplifying the equation. I’ll give some examples on how it would react. Since unbonding is what we are protecting against, I will look at flash unbonds while the inflation rate is at the floor due to that being the #1 time of vulnerability.

Also, DeFi is coming to ATOM in next few weeks.  And, this opens up new opportunities to use ATOM in the Gravity Dex and Osmosis.

To make it all a success, the community are looking to have more votes for proposal 48. And, all this to ensure the staking on the Cosmos Hub to remain adaptive.

About being green, Cosmos offers the opportunity for automatically offsetting validator and even protocol-level emissions with Regen Network’s carbon offsetting protocol. They are very clear about the importance of greener environment while fostering innovative technology.  They are focused on establishing sustainable solutions like Cosmos Proof of Stake, blockchain interoperability & carbon offsetting.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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