The Cosmos (ATOM-USD) community just gave a big thumbs-up to Proposal #912. The Decentralized Cooperation Foundation (DCF) announced the successful passage of this initiative aimed at pumping up liquidity and economic stability within the Cosmos network.
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Proposal #912: Revolutionizing Liquidity
What’s the crypto buzz about Proposal #912? This proposal introduces a framework for liquid staking. Translation: it lets staked crypto assets be traded freely through derivative tokens, making them more liquid. Traditionally, staking means locking up tokens to secure the network—great for security, terrible for liquidity. Liquid staking changes the game by allowing these assets to be used in other financial activities, upping their efficiency and liquidity.
Proposal #912 is more than just hot air; it’s action-packed. The plan allocates 188,768 ATOM from the Cosmos Community Pool to liquid staking on Stride and Persistence platforms. This is expected to boost capital efficiency by a juicy 18%. If the initial three-month trial phase goes well, an additional 6% of ATOM tokens will join the party, bringing the total to 10%.
IST: The Backbone of Better Liquidity
At the core of Proposal #912 is the Inter Stable Token (IST), which is key to enhancing liquidity and maintaining economic stability across the Cosmos network. The proposal outlines minting IST from Inter Protocol using liquid-staked assets with a hefty 500% collateralization ratio. These tokens will then spread across various liquidity pools, with half of the IST swapped into USDC-USD. Major platforms like Osmosis, Astroport, Axelar, Shade Protocol, and Quasar Finance are set to benefit, aiming for an overall efficiency bump of 18%.
Ric Shreves, President of the Decentralized Cooperation Foundation, is pretty thrilled. “The passage of Proposal #912 is a testament to the Cosmos community’s commitment to innovation and decentralized governance. We are proud to support such initiatives that align with our mission to promote blockchain solutions that are accessible, efficient, and equitable,” he said.
Is Cosmos a Buy?
According to TipRanks’ Summary of Technical Indicators, Cosmos is a Sell.
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