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Why ATOM is becoming a superior yield-generating asset

Don't sleep on $ATOM. It is becoming a superior yield-generating #cosmos asset.

July 07, 2023

Don't sleep on $ATOM. It is becoming a superior yield-generating #cosmos asset.

Whether you missed $ATOM at $1, $5 or $8, you can still accumulate and DCA into buying $ATOM. Allow us to explain why we think the risk-reward ratio is extremely attractive.

#cosmos has a thriving ecosystem with solid tech and a vibrant community. But recently, we've seen breakthroughs within the @cosmoshub that makes $ATOM the prime asset to buy, hold & stake:

  1. Replicated Security

  2. Economic Zone

  3. Tokenomics

  4. LSM

1. Replicated Security 

Replicated allows "consumer chains" to rent security from the @cosmoshub validators, avoiding the need to attract validators to your own app chain. This makes it possible for new chains able to deploy on @cosmoshub with $ATOM as the network token.

Some of the chains that will adopt replicated security

  1. Neutron: An ecosystem of dapps sharing 25% of the tx fees and mev bids to $ATOM stakers. 7% of the $NTRN supply is also airdropped to $ATOM stakers!

  2. Stride: Sharing 15% of liquid & inflationary staking rewards, MEV revenue, and tx fees.

  3. Duality: Sharing 100% of gas fees and 100% of swap fees to Liquidity Providers

Others coming: Noble and Umee. It will be exciting to see what $ATOM stakers can look forward to receive from @noble_xyz & @Umee_CrossChain when they launch on @cosmoshub

2. Economic Zone 

#Cosmos is growing, and $ATOM is the asset powering the expansion. A number of Economic Zones are on the horizon:

and maybe also @entrypointzone

EntryPoint has been proposing an investment of $2.5M from @cosmoshub for a 10% stake in $ENTRY. EntryPoint will use $ATOM as the gas token and looks to bring widespread adoption to #cosmos with their index tokens.

3. Tokenomics

Since the beginning of time, $ATOM has been criticised for being too inflationary. There are now proposals to reduce inflation and increase the scarcity of $ATOM. Couple that with increased utility, and users have big incentives to buy & use .

4. LSM

Liquid staking module (LSM) cements $ATOM as the collateral token of choice for all of #Cosmos #DeFi with:

  • Limiting liquid staking

  • Validator bond

  • No unbonding period

Together, this could (finally) make Cosmos Defi TVL.

In sum, don't sleep on $ATOM. Now is a great time to accumulate before the next run. While writing this thread we reflected back on previous tweets about $ATOM and @cosmoshub, and it's incredible to see how far we've come over the past year.