DCF Announces Passage of Proposal for Better Liquidity and Efficiency in Cosmos Network
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Coinspeaker DCF Announces Passage of Proposal for Better Liquidity and Efficiency in Cosmos Network The Decentralized Cooperation Foundation (DCF) announced the successful passage of Proposal #912, a transformative initiative within the Cosmos network, a leading decentralized network of independent parallel blockchains, aimed at improving liquidity and economic stability. Proposal #912: Milestone for Cosmos Network Recently approved by the Cosmos community, Proposal #912 introduces a robust framework for liquid staking. This initiative is designed to allow staked assets to be traded freely through derivative tokens, therefore enhancing the liquidity within the network. The passage of this proposal underscores the community’s commitment to continuous innovation and improvement. The primary objective of the proposal is to optimize the utilization of staked assets by enabling their liquidity. Traditional staking involves locking up tokens to secure the network, which, while crucial for network security, reduces the liquidity of these assets. Liquid staking, however, allows these staked assets to be utilized in other financial activities, improving their efficiency and liquidity. Implementation and Initial Phase Proposal #912 directs the strategic allocation of 188,768 ATOM from the Cosmos Community Pool towards liquid staking on the Stride and Persistence platforms, expected to increase capital efficiency by 18%. This projection is based on the improved utility of staked assets, which can now participate in various financial activities without compromising the network’s security. If this initial phase proves successful, after a three-month pilot, an additional 6% of the ATOM tokens will be allocated, bringing the total to 10%. The Role of the Inter Stable Token (IST) Central to Proposal #912 is the strategic and expanded utilization of the Inter Stable Token (IST), integral to enhancing liquidity and maintaining economic stability across the Cosmos network. The proposal specifies the use of liquid-staked assets to mint IST from Inter Protocol with a 500%…
Filed under: News - @ May 17, 2024 6:16 am