Neutron: Bringing Interchain Growth and DeFi Innovation to Cosmos

2023.05.05

Neutron: Bringing Interchain Growth and DeFi Innovation to Cosmos

Neutron is bringing DeFi applications and use cases to the Atom economic zone.

2023.05.05 - 07:45:46

NeutronCosmos

Navigating Web3 tides with focused insights

Neutron is bringing DeFi applications and use cases to the Atom economic zone.

Written by: Cosmos Hub

Compiled by: TechFlow

Neutron, a permissionless CosmWasm platform, will revolutionize the Atom Economic Zone (AEZ) through its secure and versatile infrastructure. Backed strongly by the Cosmos Hub and collaborating with an expanding list of partner projects, Neutron is poised to bring a wave of DeFi applications and use cases to the Interchain ecosystem. From powerful cross-chain capabilities to innovative asset management solutions, Neutron’s emergence marks the beginning of a new era in the evolution of decentralized finance.

Now is the time to dive deeper.

Neutron is a permissionless CosmWasm platform. Smart contract applications can be deployed on Neutron without requiring governance-voted whitelisting. By leveraging the security of the Cosmos Hub, Neutron will become the most secure CosmWasm platform in the Cosmos ecosystem. In return for providing security, the Cosmos Hub will receive from Neutron:

25% of transaction fees;
25% of MEV revenue;
7% of the NTRN supply as initial distribution;
Support in strengthening ATOM’s position as an interchain reserve currency.

In fact, the Cosmos Hub offers not only security but also hosts the largest Interchain community. Applications built on Neutron will gain access to a broader user base. By enabling the Hub to horizontally scale DeFi, Neutron effectively serves as the execution layer for the Cosmos Hub.

A natural outcome of Neutron’s adoption is the strengthened role of ATOM. Beyond generating long-term revenue for the Hub, Neutron outlines how it will help reinforce ATOM’s status as an Interchain reserve currency:

ATOM in DeFi: Neutron aims to host a DeFi product ecosystem built around NTRN and ATOM, creating utility and demand for these tokens. Applications on Neutron will allow astronauts to provide liquidity, lend, exercise governance rights, strip bonding rewards, and more using native and liquid-staked ATOM. This will drive demand for ATOM and reduce circulating supply by enabling users to lock their tokens in DeFi protocols to earn rewards.

ATOM in Treasuries: Neutron provides cross-chain infrastructure and a flexible execution environment to serve large treasuries across the IBC ecosystem. As primitives like DAODAO, Timewave, and Gitcoin launch on Neutron, the Hub will ultimately gain tools to establish secure, programmable agreements with other chains, protocols, and treasuries—enabling token swaps, quadratic funding, lending agreements, protocol-owned liquidity, and more.

The Cosmos Hub protects consumer chains through robust applications, and several projects have already announced partnerships with Neutron:

Astroport will deploy on Neutron. As a market-leading multi-chain AMM, Astroport brings liquidity to Neutron and the Atom Economic Zone. Cosmos Hub Proposal #794 expresses support for Stride joining the AEZ and explores potential synergies among the Hub, Stride, Neutron, and Astroport.

Squid will provide Neutron with strong cross-chain capabilities. This integration will enhance cross-chain communication, simplify liquidity management, and enable frictionless partnerships between dApps across different blockchains.

Croncats is bringing automation to Neutron. This collaboration will empower users and developers to create versatile tasks for various DeFi activities and dApp functions, streamlining operations across the ecosystem.

Through its partnership with Skip Protocol, Neutron will launch mev-tendermint, also known as Skip Select—a decentralized off-chain blockspace auction that protects the network and its users from harmful forms of transaction ordering manipulation while redistributing value back to the ecosystem.

Apollo’s deployment on Neutron will introduce innovative asset management solutions and unique yield strategies for liquidity providers.

Cosmostation will support Neutron.

Leap Cosmos will support Neutron dApps.

The collaboration with Nolus Protocol will enhance the experience for both Neutron and Nolus users by unlocking advanced financial functionalities and fostering mutual growth. Leveraging Neutron’s technology, users will seamlessly swap, lend, transfer, and participate in various financial activities using leased assets from Nolus.

Kado is preparing to launch on Neutron, offering seamless fiat-to-crypto onboarding and enhancing user experience within the ecosystem.

Neutron is bringing DeFi applications and use cases to the Atom Economic Zone—a new ecosystem is rising within the Interchain, centered around ATOM and designed to share value and grow the cross-chain economic landscape.