Introducing the Cosmos Hub’s first Venture Grant: Elys Network
The ATOM Accelerator DAO (AADAO) proudly announces its first Venture Grant and strategic partnership with Elys Network.
Cosmos Hub’s Venture Grants, deployed through the AADAO, aim to invest in high-growth early-stage projects within the interchain ecosystem. Leveraging a venture capital model, they drive value back to the Cosmos Hub Community Pool, as explained in our previous article.
Elys Network is a cutting-edge blockchain powered by the Cosmos SDK and is set to be the first all-in-one DeFi appchain to utilize Interchain Security. It will leverage the Cosmos Hub’s economic security and battle-tested validator set to secure its product and add new offerings to the Atom Economic Zone (AEZ).
Through the Cosmos Hub Venture Grant deployed through the AADAO, the Cosmos Hub Community Pool is set to receive a substantial amount of ELYS tokens. This allocation is in addition to any airdrops Elys Network may do for Atom holders and stakers as part of its launch on Interchain Security. ATOM will also be the default gas token for Elys’ innovative all-in-one DeFi app.
Let’s dive into the details…
The First All-in-One DeFi Appchain
Elys Network seamlessly blends the CEX trading experience with the benefits of a DeFi infrastructure, bringing forward the ultimate platform for Liquidity Mining, Staking, Swaps, Leveraged LP, PerpDex and more.
Through its innovative use of account abstraction, trading on Elys is so seamless, that you don’t even need a Web3 wallet!
Elys will also be one of the first chains to integrate native Bitcoin staking, LP and Leveraged Trading to earn real yield on native BTC. This will combine high-speed trading with security and expand the digital asset exposure and DeFi use cases in the AEZ. This functionality is coming through their collaboration with Babylon, who is currently working with Informal Systems to introduce Bitcoin Security into the Interchain Security mix.
In addition, thanks to its partnership with Stride Protocol - a current consumer chain of the Cosmos Hub - Elys will offer seamless one-click liquid staking, underlining its deep integration with the Atom Economic Zone.
Elys Network will also significantly change the current LP offerings in the AEZ. They will use Oracle-based hybrid Automated Market Makers (AMM) with custom weighted pools, pools with multiple assets, and many other customizable parameters. Their multi-token design is crafted to maximize earnings while nurturing a healthy ecosystem. Learn more about Elys Network here.
A Strategic Collaboration with the Cosmos Hub
DeFi is currently one of the primary use cases of blockchain, and perpetual trading protocols are among the most profitable and widely used in DeFi. However, while many have attempted to reinvent tooling around trading, Elys Network is dedicated to ensuring the ultimate user experience, including a streamlined onboarding process to foster further Web3 adoption.
Combined with their AEZ-aligned liquid staking and ability to earn real yield on native BTC, they are set to exponentially increase the DeFi use cases in the Atom Economic Zone.
With a user experience akin to Web2, that does not even require users to onboard to a Web3 wallet, Elys is primed to onboard the next wave of users on blockchains.
With the main goal of establishing itself as the go-to trading platform, Elys Network is set to provide the interchain with a cutting-edge trading experience, driving further value to the Cosmos Hub and its token, ATOM.
The First Venture Grant
Through the AADAO Venture Grants Program, that Cosmos Hub governance mandated on prop #865, the Cosmos Hub will acquire a stake in and benefit directly from the launch of projects building on the interchain - growing and diversifying the tokens in the ATOM Community Pool
The aim of AADAO’s Venture Grants program is to drive tangible and measurable value to the Cosmos Hub.
As a DAO-owned by the Cosmos Hub, full financial details of our investment will be published in the coming weeks. But today, we are pleased to announce that:
• The Cosmos Hub will acquire a significant token allocation in Elys Network, secured as an early-stage investor.
• While a vesting schedule will apply to our allocation, the Cosmos Hub’s allocation will be delivered to the Atom Community Pool as it vests.
• This allocation is in addition to any airdrops Elys Network may do for Atom holders and stakers as part of its launch on Interchain Security.
• As discussed during prop #865, 80% of the Elys token allocation will go to the Cosmos Hub's Community Pool. This will increase the pool’s dollar value and diversify the assets that the community holds.
• The remaining 20% of the tokens acquired will be managed by AADAO, to support our grants, venture grants and quadratic funding programs and further drive value to the Cosmos Hub.
• The AADAO is also a strategic advisor to Elys Network, helping to further align the protocol with the AEZ and the Cosmos Hub. As part of this role, AADAO has been granted a further token allocation, which we will also distribute to the Community Pool using the 80:20 division.
• ATOM has also been integrated as the default gas token within Elys Network and is already active on their testnet. This forms a close ATOM alignment with Elys Network - and increases ATOM exposure to the new users Elys will be onboarding onto web3.
The Next Steps
As Elys leverages Interchain Security and integrates deeply with the Atom Economic Zone, it not only enhances ATOM's utility but also fosters increased adoption across the ecosystem.
This focus aligns perfectly with the objectives of the Venture Grants program, and so this strategic collaboration between Elys Network and AADAO marked the perfect start for Cosmos Hub's Venture Grants.
With AADAO's support via the Venture Grants and strategic collaboration, Elys Network is positioned to drive growth and innovation in the Atom Economic Zone.
AADAO looks forward to further collaborating with their professional and innovative team and seeing their solution expand. Discover Elys Network’s testnet.
About the Atom Accelerator DAO
AADAO is a governance-mandated DAO of the Cosmos Hub. We have been formed and mandated to drive value for the Cosmos Hub, supporting initiatives that either directly create economic impact or produce value that can drive its growth.
In 2023, we deployed $3.8 million in grants to 39 recipients - resulting in, among other things - a $22m USD airdrop to the Community Pool, an AEZ Accelerator program to expand the AEZ, a successful hackathon with 42 project submissions bringing innovations to the AEZ - and many other key initiatives. Read about them in our 2023 Impact Report.