The upgrade includes a liquid staking module, which eliminates the 21-day locking period for unstaked ATOM tokens.
Cosmos Hub, a vital component of the Cosmos Network, has undergone an upgrade, introducing a revolutionary liquid staking module. This innovation empowers users to circumvent the previous 21-day unbonding period when unstaking ATOM tokens.
ATOM, the native token of the Cosmos network, experienced a lock-in period of three weeks for users to move their funds after unstaking. With this new module, staked ATOM can now be utilized within the Cosmos decentralized finance (DeFi) ecosystem, allowing users to enjoy the benefits of both staking and DeFi without compromising yields.
Pseudonymous Cosmos validator Cryptocitos has estimated that this module will unlock over $400 million worth of ATOM, potentially accelerating the presence of staked ATOM in various protocols within the Cosmos network. The upgrade also permits users to cancel unbondings already in progress, enabling ATOM to return to regular staking.
Additionally, Cosmos Hub has imposed a 25% cap on the total amount of ATOM that can be used for liquid staking. Governance-controlled parameters have also been introduced, along with a requirement for validators seeking delegations from liquid staking providers to self-bond a specific amount of ATOM.
Around a month ago, Cosmos (ATOM) partnered with Inter Protocol to introduce IST Vaults, an innovative addition to the IST stable token ecosystem. These Vaults allow users to generate IST by utilizing interchain assets, with ATOM serving as the initial asset option.
Furthermore, on July 18, Cosmos unveiled a game-changing feature called "concentrated liquidity," enabling liquidity providers to set their preferred prices for crypto transactions on the Cosmos platform. This upgrade has the potential to significantly improve capital efficiency, with projections of a 100x to 300x increase.
Despite these remarkable upgrades, Cosmos' ATOM experienced a slight price decrease amid increased market volatility. Over the past month, ATOM's value dipped by 23%, from $8.40 to $6.42.
Nonetheless, experts remain optimistic, predicting that ATOM could reclaim the $8 mark by October, especially as Cosmos navigates towards an interoperable future. This emphasizes the ongoing potential and significance of the Cosmos network in the evolving crypto landscape.