Overview of the Potential of the Cosmos Ecosystem (Part 2): Zero-Knowledge Proofs, MEV, and New Types of Stablecoins

Written by: Morty, Deep Tide TechFlow

In the previous article, we introduced 7 protocols including Osmosis, Celestia, and GNO Land. Next, we will continue to introduce another 8 protocols in the Cosmos ecosystem.

Polymer Labs

Polymer Labs is a modular network protocol built on IBC, aimed at achieving decentralized, secure, and permissionless cross-chain networking.

The core competitiveness of Polymer lies in its seamless communication between multiple chains through the introduction of zero-knowledge proofs. ZK-IBC will allow different blockchain protocols to communicate with each other without a trusted third party. This will also bring higher throughput, speed, and lower costs for communication between multiple chains.

Anoma Network

Anoma Network is a multi-chain protocol focused on privacy protection, which will be used to decentralized discover more counterparties and conduct multi-chain atomic transactions.

Atomic transactions mean that both parties achieve cross-chain peer-to-peer transactions in a decentralized manner (without third-party involvement).

The logic behind Anoma's functionality also relies on zero-knowledge proofs, with its core advantage being atomic transactions between multiple chains. The team's description of Anoma is "a New Language for Value."

Quicksilver Protocol

Quicksilver Protocol is a cross-chain liquid staking protocol built within the Cosmos ecosystem. Users can stake assets into Quicksilver, receive qASSET, and use it in DeFi to increase asset utilization efficiency.

Quicksilver's core competitiveness is that it supports all on-chain assets connected to IBC without requiring any permission.

Archway

Archway is a developer-friendly Layer 1 that aims to promote the sustainable development of the ecosystem by rewarding DApp developers.

Archway's built-in reward system allows developers to earn rewards from three aspects—Gas rebates, inflation, and contract premiums. This means that as long as developers can launch a successful application on Archway, they will receive substantial returns.

Archway's core competitiveness lies in its economic incentives for developers. Thanks to the openness of the Cosmos ecosystem, developers deploying DApps on Archway are not constrained by cross-chain barriers.

Quasar

Quasar is an asset management application chain based on vaults built within the Cosmos ecosystem.

Quasar addresses two pain points:

• Complexity of DeFi operations: Quasar provides users with a powerful set of DeFi tools to lower the barriers for on-chain investments;

• Fragmentation of liquidity in the Cosmos ecosystem: Quasar, as an application chain, hopes to concentrate ecosystem liquidity through excellent products to enhance capital efficiency.

These are the core competitive advantages of Quasar.

Skip Protocol

Skip Protocol is an MEV product built in the Cosmos ecosystem and deployed on a single chain. It aims to democratize MEV to protect users from the impacts of erroneous MEV strategies. In the words of the Skip team, "Skip amplifies the impact of good MEV (arbitrage and liquidation) while reducing the impact of bad MEV (arbitrage and liquidation)."

Currently, the team is building products on chains like Juno, Evmos, and Terra2.

Skip's core competitiveness lies in its synchronization with ATOM 2.0. The inter-chain scheduler and inter-chain distributor of ATOM 2.0 will address the MEV issues between chains, while Skip complements ATOM 2.0 by solving the MEV issues within a single chain in the Cosmos ecosystem.

Mekatek

Mekatek is an MEV marketplace built between Cosmos blockchain networks, creating an open block space market for Cosmos ecosystem users that is transparent and allows users to express their preferences while ensuring fee distribution to all parties on the target chain.

Mekatek's core competitiveness lies in the transparency of its block space market. With the launch and operation of its product Zenith, Mekatek has become the first block space market on Cosmos.

Canto

Canto is an EVM Layer 1 built on the Cosmos SDK specifically for DeFi services, offering three products: Canto DEX, Canto lending market, and the stablecoin $NOTE.

The stablecoin $NOTE was fully minted at launch, allowing users to collateralize assets and borrow $NOTE in the lending market.

According to DeFiLlama data, Canto's TVL (Total Value Locked) is $89 million.

The establishment of Canto DEX (forked from Solidly) and Canto lending market (forked from Compound) aims to adjust the market demand for $NOTE through the lending rates of the lending market and the stablecoin incentive pools of Canto DEX, in order to maintain the price stability of $NOTE.

Canto's core competitiveness lies in the promotion of the stablecoin $NOTE. After learning from the lessons of $UST, the algorithmic mechanism risk of $NOTE will be lower, while fulfilling the demand for stablecoins in the Cosmos ecosystem.