Summary

This community spend proposal is for growing ATOM liquid staking with pSTAKE’s stkATOM by allocating 600k ATOM as Cosmos Hub Protocol Owned Liquidity (stkATOM Hub POL) on Astroport (Neutron) and Dexter (Persistence).

In return, [Hidden link] and waive off the protocol fee (currently set at 5%) charged on liquid staking 300k ATOM out of the 600k ATOM from the community pool. The revenue share agreement will be valid for the entire duration until the Cosmos Hub provides this ‘Liquidity-as-a-Service’ (LaaS) to stkATOM.

One can learn more about stkATOM, current stats and DeFi usage, unique features, steps taken to decentralize Cosmos Hub, and security considerations [Hidden link].

Details

The final proposal considers feedback from four weeks of active discussions within the Cosmos Hub community.

1. Liquid Stake 300k ATOM (out of the 600k ATOM) with pSTAKE to mint stkATOM
2. Provide 350k ATOM worth of liquidity on a new stkATOM/ATOM pool on Astroport on Neutron
3. Provide 250k ATOM worth of liquidity on the [Hidden link]

The proposed POL is suggested to be steered by a 3/5 multisig wallet (stkATOM Hub POL Multisig - cosmos1hj2zms8g4j2npnqgzft90nhdw37tstkvksx66q) comprising the following Cosmos Ecosystem contributors:

Spaydh - Avril Dutheil (Neutron) Clemens Scarpatetti (Cryptocrew) Sanjeev Rao (Leap Wallet) Michael NG (Stake With Us) Mikhil Pandey (Persistence Labs)

The stkATOM Hub POL multisig will only liquid stake ATOM and provide stkATOM liquidity on the above-mentioned protocols. The POL will be deployed for at least one year and remain unbonded. ATOM governance can continually re-evaluate the POL’s duration, split, withdrawal, and further stkATOM Hub POL multisig actions at any time.

The stkATOM Hub POL multisig is expected to be a temporary solution until Timewave Labs’ Covenant v2 is launched for non-custodial POL holding. Using and transferring funds to Timewave’s solution will also be subject to ATOM governance.

Ecosystem Value Add

stkATOM liquidity on Astroport can contribute to Neutron’s growth through increased on-chain activity, diversified LSTfi landscape, and new revenue sources with transaction fees, and swap fees generated by this POL.

Dexter is the current liquidity base for stkATOM in Cosmos on Persistence, the app chain for LSTfi. A metastable pool combined with an ongoing Trader Rebate Program has generated ~$3.5M+ volume to date.

This proposed LaaS holds the power for ATOM, as a capital tool, to

• Generate revenue for the Cosmos Hub
• Strengthen itself at the centre of Cosmos LSTfi
• Diversify the Community Pool’s exposure to ATOM LSTs
• Increase stkATOM (liquid staking) demand with stronger stkATOM-ATOM peg, increased LSM usage on pSTAKE, and additional collateralization opportunities
• Align ecosystems within and outside the ‘ATOM Economic Zone’

Cosmos Hub Forum Discussion - [Hidden link]

Voting

• By voting YES, you agree with deploying the proposed stkATOM Hub POL on Astroport (Neutron) and Dexter (Persistence) to grow ATOM liquid staking
• By voting NO, you disagree with deploying the proposed stkATOM Hub POL on Astroport (Neutron) and Dexter (Persistence) to grow ATOM liquid staking
• By voting ABSTAIN, you contribute to the quorum but formally decline to vote either for or against the proposal.
• By voting NO WITH VETO, you consider this proposal spam, malicious, or harmful and want the depositors penalized by burning their deposit.