Hydro: The Interchain Auction Platform for Liquidity Exports | by Thyborg | May, 2024 | Interchain Ecosystem Blog

Hydro is a bidding & governance platform for the efficient deployment of liquidity across the interchain ecosystem. It is the central piece of the ATOM wars and a response to what has been the biggest challenge of the interchain since its inception: token liquidity. The interchain’s liquidity problem hinders the ecosystem’s full potential, impacting both established projects and burgeoning ones. Low liquidity is also a vicious circle, leading to lower trading volumes, making the ecosystem less attractive to market makers who provide additional liquidity, exacerbating the initial issue. In an effort to improve the situation, projects have started attempting to use the funds available in the Cosmos Hub community pool, with multiple successful liquidity exports having a positive impact (Neutron, Stride, Persistence, Osmosis & Agoric up until now). The issue is that this method of allocating funds has remained largely manual and uncoordinated, leading to several inefficiencies and missed o

Hydro is a bidding & governance platform for the efficient deployment of liquidity across the interchain ecosystem. It is the central piece of the ATOM wars and a response to what has been the biggest challenge of the interchain since its inception: token liquidity. The interchain’s liquidity problem hinders the ecosystem’s full potential, impacting both established projects and burgeoning ones. Low liquidity is also a vicious circle, leading to lower trading volumes, making the ecosystem less attractive to market makers who provide additional liquidity, exacerbating the initial issue. In an e