TechFlow Insights
The natural outcome of adopting Neutron is to strengthen the position of ATOM. In addition to generating long-term revenue for the Hub, Neutron also outlines how it will help reinforce ATOM's status as the Interchain reserve currency:
ATOM in DeFi: Neutron aims to host a DeFi ecosystem built around NTRN and ATOM, thereby creating utility and demand for the tokens. Applications built on Neutron will enable astronauts to provide liquidity, lend and borrow, exercise governance rights, and strip staking derivatives using native and liquid-staked ATOM. They will drive demand for ATOM and reduce circulating supply by enabling holders 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 within the IBC ecosystem. As primitives like DAO DAO, Timewave, and Gitcoin launch on Neutron, the Hub will ultimately possess the tools to establish secure, programmable agreements with other chains, protocols, and treasuries—such as token swaps, quadratic funding campaigns, lending agreements, protocol-owned liquidity, and more.
