The developers of the Cosmos platform integrated a liquid staking module into the central blockchain of the Cosmos Hub ecosystem during the network update to version v12.
The v12 upgrade is successfully completed ⚛️
The Liquid Staking Module is live on the Cosmos Hub!
With LSM the Hub unlocks new dynamics within the ATOM Economic Zone.
— Cosmos Hub ⚛️ (@cosmoshub) September 13, 2023
The Liquid Staking Module (LSM) mechanism makes it possible to exchange ATOM tokens staked through validators for liquid assets stATOM and stkATOM. At the same time, users do not need to unlock coins and wait for the end of the two-week unlinking period.
LSM allows you to continue to receive passive income and additionally use stATOM and stkATOM as capital in the DeFi protocols of the Cosmos space.
The team reminded that in order to reduce risk, the volume of tokens in liquid staking is limited to 25% of the total number of coins placed by validators. In the future, the limit can be changed through a decision of the management system.
The developers of the Leap Cosmos wallet noted that LSM will make ATOM staking more profitable, attract additional tokens and increase binding coefficient. This will reduce the coin’s inflation and make it “more utilitarian in nature,” they stressed.
well, with LSM enabling easier liquid staking, more ATOM gets bonded for staking, increasing the bonding ratio ↑
as the bonding ratio increases, the ATOM inflation rate goes down, making the token more utilitarian in nature!
— Leap Cosmos ⚛️ (@leap_cosmos) September 13, 2023
LSM has already integrated projects such as Stride, pSTAKE Finance and Quicksilver Protocol.
Let us remember that earlier the latter attracted funding from the staking company Chorus One, and Binance Labs invested in pSTAKE.
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