TechFlow reported on October 18 that, according to official announcements, the Cosmos Hub has passed a proposal supporting the Liquid Staking Module (LSM). Officials stated that since the initial LSM proposal contained edits attributed to North Korean IT personnel, Informal Systems and ATOM Accelerator are conducting a third-party audit of the LSM, resulting in the postponement of the Hydro project originally scheduled for launch this week.
Hydro is a liquidity distribution platform developed by Informal Systems for Cosmos Hub. It leverages LSM to enable ATOM stakers to participate in governance voting without needing to unstake, forfeit staking rewards, or commit to any single liquid staking provider. The Cosmos Hub team indicated that this functionality could alternatively be achieved through a more elegant solution, such as upgrading the staking module to allow Hydro to withdraw staked ATOM on behalf of users—similar to EigenLayer’s design.
Previous report: The Cosmos Hub liquid staking module was found to have serious security vulnerabilities, with North Korean agents involved in writing most of the code.
