Research Summary
The report discusses the potential of the ATOM Economic Zone (AEZ) and the role of the Cosmos Hub in leveraging replicated security to form a lively economy around it. It highlights the partnerships with Neutron and Stride, which are set to become the first two chains secured by the Hub. Neutron, backed by the P2Pvalidator team, could become the DeFi Hub of the Cosmos ecosystem, while Stride is positioned as the Hub’s liquid staking provider. The report also mentions six additional chains considering joining the AEZ. However, the economics around Replicated Security remain unclear.
Actionable Insights
- Neutron and Stride Partnerships: These partnerships could bring significant value to ATOM. Neutron will enable both ATOM and NTRN to be used as a gas token on the chain, and Stride will share 15% of liquid staking rewards, transaction fees, and MEV revenue in exchange for the Hub’s security.
- Revenue Projections: The Hub could collect anywhere from $480k to $3.3M from Neutron and $430k to $4.4M from Stride in the first year. The total revenue from Replicated Security could range from $900k to $7.7M in the first year.
- Future Prospects: If the chains in the ATOM Economic Zone can find product-market fit, ATOM will increasingly become a more attractive asset to hold. However, the community needs to be selective in identifying the right candidates that can drive long-term value to ATOM stakers.
