ATOM’s role in the Cosmos ecosystem has long been centered around staking and governance. While widely adopted for securing networks, its presence in DeFi has been limited. Now, Elys Network is looking to change that by integrating ATOM as a primary asset in its DeFi platform.
This move brings new financial use cases to ATOM, aiming to deepen its integration into trading, liquidity, and lending markets—sectors where Cosmos has traditionally lagged behind other ecosystems like Ethereum and Solana.
What Elys Network Brings to ATOM Holders
Elys Network is positioning itself as a core DeFi hub within Cosmos. Its model introduces multiple financial tools that utilize ATOM, including:
Staking Pools – ATOM holders can stake and earn real yield in USDC.
Liquidity Pools – ATOM can be used as a liquidity asset against USDC with mitigated impermanent loss.
Leverage LP – Expanding ATOM’s role in leveraged liquidity provisioning.
Perpetual Trading – ATOM can be utilized as a collateral asset in perpetual futures trading.
This integration expands ATOM’s economic activity beyond staking and governance, offering new opportunities for users to engage with their assets.
Aligning With Cosmos Hub’s Broader Vision
Elys has committed to deeper alignment with the Cosmos Hub by implementing:
ATOM as the primary gas token – Transactions on Elys will be settled using ATOM, increasing its demand and usage.
Revenue Allocation to ATOM Staking – 15% of Elys’ retained protocol revenue will be used to buy back and stake ATOM, adding an additional demand driver.
This ensures that ATOM’s integration isn’t just about expanding utility—it also creates mechanisms to capture value from Elys Network’s economic activity.
What This Means for Cosmos and ATOM’s DeFi Growth
Cosmos has historically struggled to establish ATOM as a key asset in the DeFi space. While liquidity exists, most major DeFi applications have been built on other ecosystems. Elys’ integration of ATOM provides a clearer pathway for its use in lending, trading, and yield generation.
If this model gains traction, it could set a precedent for other DeFi protocols within Cosmos to adopt similar structures, reinforcing ATOM’s role as a DeFi asset across the interchain.
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