Original title: A Brief Analysis: The Innovations Neutron Brings to Cosmos

Original source:AppleDao

Cosmos current status

The cosmos ecosystem has been popular for a while in 2022 due to the staking combined with airdrop model, and early pledgers have benefited a lot from it. However, ATOMs neutrality and almost no form of value capture have resulted in the entire ecosystem not attracting too many users. and funding. But this has also led to the development of the cosmos ecological artifact IBC protocol. Currently, more and more projects have joined the cosmos ecology, including a series of projects such as the old defi project DYDX and INJ, which has been trending well recently. The concept of L2 is also inspired by cosmos to a certain extent.

On March 15 this year, cosmos hub tweeted that cosmos hub would enable Replicated Security (originally named Interchain Security). This mechanism allows other Cosmos ecological blockchains to ensure their own security with the help of Cosmos Hub’s validators without the need for Maintaining its own validators, these blockchains will be called consumer chains), which means that the cosmos ecosystem has truly entered the atom 2.0 fusion era, and Neutron will be the first chain launched on Replicated Security.

What is Neutron

• Powered by Tendermint and built using the Cosmos SDK, Neutron is the most secure permission-free smart contract platform for cross-chain DeFi

• Neutron lets developers launch smart contracts

• Neutron provides tools to interoperate with other protocols and application chains

• Neutron is incubated by industry leaders and Cosmos OG P2P (Lido Core Team)

Neutron was the first chain to launch on Replicated Security (RS) making it a top 10 proof-of-stake chain in terms of economic security. Launching an application chain in the Cosmos ecosystem, a network of interconnected blockchains, can be resource-intensive and costly due to the complex infrastructure required. Additionally, a diverse set of validators is critical to a chain’s success, which may be difficult for smaller, newly launched chains to achieve.

Neutron aims to solve this problem by deploying various smart contracts on the Cosmos Hub. Provide convenience for project parties and save resource costs

Neutron: Bringing inter-chain growth and DeFi innovation to Cosmos

Neutron is a permissionless CosmWasm platform. Smart contract applications can be deployed on Neutron without whitelist verification through governance voting. By leveraging the Hubs security, Neutron will become the most secure CosmWasm platform in Cosmos. To provide security, Cosmos Hub will receive from Neutron:

• 25% transaction fee;

• 25% of MEV revenue;

• 7% of NTRN supply as initial distribution;

• Help strengthen ATOM’s status as a cross-chain reserve currency

Cosmos Hub not only has security, it is also the largest Interchain community. Applications on Neutron will be open to a wider range of users. Neutron allows the Hub to scale out DeFi, so it can be called the execution layer of the Cosmos Hub.

In addition to generating long-term revenue for the Hub, Neutron also described how it will help strengthen ATOMs position as Interchains reserve currency:

• ATOM in DeFi:Neutron aims to host an ecosystem of DeFi products built around NTRN and ATOM, thereby generating utility and demand for the tokens. Applications built on Neutron will enable cosmos to provide liquidity, lend and borrow, exercise governance powers, divest bonds, and more using native and liquid-staking ATOM. They will drive demand for ATOM and reduce the circulating supply by enabling cosmos to earn rewards by locking their tokens in DeFi protocols.

• ATOM in the treasury:Neutron provides cross-chain infrastructure and a flexible execution environment to serve large treasuries in the IBC ecosystem. As primitives like DAODAO, Timewave, and Gitcoin launch on Neutron, the Hub will finally have the tools to enter into secure, programmatic agreements with other chains, protocols, and treasuries: token swaps, secondary fund raising, loan agreements, protocols Liquidity owned and so on.

$NTRN

Total amount 1 billion

1) 54% allocated to Neutron DAO (tokens held in the DAO’s reserves and vaults. They are mostly liquid and can only be used or transferred with the consent of a majority of voters)

2) 34% is allocated to the founding team and early supporters, locked for 1 year and linearly unlocked for 3 years (founders: locked for one year, linearly vested within three years, no voting rights during the grant period. Early supporters: locked for one year, Three years of linear vesting, with voting rights during the vesting period.

3) 12% allocated to the community for airdrops (Tokens allocated to the community through Neutron’s airdrop and release activities. 3-month unlocking period and optional locking period, with voting rights during the unlocking period.)

Initial supply 120 million

1) 70 M $NTRN is used for airdrops, of which: 40 M is allocated to $ATOM pledgers before 2022-11-19, and 30 M is allocated to users who participated in Proposition 72. The tokens after being claimed will have an unlocking period of approximately three months, starting from 9 days after the platform goes online.

2) Second phase: After receiving the airdrop, 40 M $NTRN will be used within 5 days to guide $NTRN- $USDC / $NTRN — $ATOM pool liquidity

3) The third phase: lasts for 3 days. The LP in the second phase can be locked for one year to obtain an additional 10 M $NTRN.

The above initial allocation process is expected to take 9 days

route map

Benefits brought by Neutron

Although cosmos’s own traffic and market value can provide a certain degree of help to participating projects, the operation of the entire cosmos chain is extremely difficult, and only core participants know how to operate. This has blocked the participation of most users. Of course, compared to the BTC ecosystem, the handling fees are indeed cheap, but the complexity is much greater than the currently popular BRC 20 and BTC NFT. For example, if I need to short a token, due to the serious centralization of $OSMO, in extreme cases I may need to go through 3-4 projects to achieve the need to short a token.

This is also the reason why the addition of dydx and the launch of Neutrons mainnet are important after the Replicated Security upgrade. As the leader in derivatives, dydx has greatly made up for the demand for derivatives. Neutrons permissionless deployment of smart contracts has brought revolutionary progress to the cosmos ecological united front. It also solves the problems of difficult operations and complicated transactions for ordinary users.

Cosmos Proposition 790 also passed to upgrade the LSD module. There is also a certain narrative surrounding the hype for the Cancun upgrade in the second half of the year.

Summarize

• The cosmos ecology has become a lot more lonely after the outbreak of L2. From $OP’s vision, we can clearly feel the shadow of cosmos. With the advent of the ATOM 2.0 era of great integration, Neutron has received a lot of attention. In theory, it can The idea of ​​​​solving the cosmos separate battles and coming to a united front also brings a new narrative and flywheel to $ATOM 1.0, which has been criticized by many as having no obvious practical value. It also solves the fatal problems of Cosmos itself - complicated transactions, difficult operations, and only core players know how to operate.

• Compared with the trilogy of ecological combustion and pledge destruction of ETH, it can be said that the ecology of Ethereum is doing very well. However, the imitators only brought endless selling pressure to themselves according to the development of the trilogy. On the contrary, the inflation-free token of Cosmos is more Favoring DeFi combined with a safe model to lock in native tokens and reduce circulation for development, there may be another wave of cosmos airdrops in the future. And Neutron may become the economic center of this outbreak. It is also possible to become uniswap on ETH.

At present, it can be seen from official information that the public sale is about to begin, and you can pay attention to whether it can become a hot spot.