Welcome to the world of Cosmos decentralized exchanges
Cosmos projects can launch their own decentralized token exchange with the new Cosmos SDK Liquidity Module (DeX). This is a key part of the Cosmos interchain vision for open exchange between independent blockchains. The DeX lets users create a liquidity pool with a pair of tokens, provide liquidity by depositing reserve tokens into the liquidity pool, and trade tokens using the liquidity pool.
The next phase in the DeX rollout is to adopt the liquidity module onto the Cosmos Hub. A signal proposal (a pre-governance ‘Request For Comment’) to receive comments from the ATOM community was opened this week on the Cosmos Forum. ATOM holders take a look!
Inter-Blockchain Communication
IBC is one of the most important industry developments in 2021
ShapeShift released a new report analyzing the Cosmos, Polkadot and Near protocols.
The “New Frontier” report gives a good overview of Cosmos and the Cosmos Hub. The Cosmos governance process is referenced as ‘elegant in its simplicity,’ however the author points out some of the challenges facing it in the future when a lot more is at stake in the ecosystem.
According to the report, 'second to Ethereum, Cosmos arguably has the most vibrant ecosystem of DApps, providing it with an impressive first-mover advantage over other emerging smart contract platforms.'
Stargate
Stargate upgrade marks IBC’s debut on the Cosmos Hub
Stargate’s upgrade timeline passed with a 49% voter turnout. This means next week at 06:00 UTC on Feb 18th the Cosmos Hub will upgrade to a new and improved version with IBC availability to Cosmos SDK based projects.
IBC roll-out comes in two phases:
After Stargate, it will be possible for anyone to create IBC clients, connections, and channels, but not yet possible to transfer tokens.
Transferring tokens requires a 2nd parameter change proposal to be passed by the Cosmos Hub governance in order to activate cross-chain token transfers.
Following the upgrade, the Cosmos Hub will be one of the first to implement the IBC protocol kicking off the future of cross-chain interoperability.
For Cosmos Hub validators: Get ready for the Stargate upgrade by going through the Stargate upgrade guide: migration from Cosmos Hub 3 to Cosmos Hub 4.
