Neutron: Bringing Interchain Growth and DeFi Innovation to Cosmos

Written by: Cosmos Hub

Compiled by: Shenchao TechFlow

Neutron, a permissionless CosmWasm platform, is set to revolutionize the Atom economic zone with its secure and versatile infrastructure. With strong support from the Cosmos Hub and collaboration with an increasing number of partner projects, Neutron is expected to bring a range of DeFi applications and use cases to the Interchain ecosystem. From robust cross-chain capabilities to innovative asset management solutions, the emergence of Neutron marks the beginning of a new era in the development of decentralized finance.

Now is the time to delve deeper.

Neutron is a permissionless CosmWasm platform. Smart contract applications can be deployed on Neutron without the need for whitelisting through governance voting. By leveraging the security of the Hub, Neutron will become the most secure CosmWasm platform in Cosmos. To provide security assurances, Cosmos Hub will receive:

• 25% of transaction fees;

• 25% of MEV revenue;

• 7% of NTRN supply as initial distribution;

• Assistance in strengthening ATOM's position as a cross-chain reserve currency.

In fact, Cosmos Hub not only offers security but is also the largest Interchain community. Applications on Neutron will be open to a broader user base. Neutron enables the Hub to horizontally scale DeFi, thus can be referred to as the execution layer of Cosmos Hub.

The natural outcome of Neutron's implementation is the strengthening of ATOM's position. In addition to generating long-term revenue for the Hub, Neutron also outlines how it will help bolster ATOM's status as an Interchain reserve currency:

• ATOM in DeFi: Neutron aims to host a DeFi product ecosystem built around NTRN and ATOM, thereby generating utility and demand for the tokens. Applications built on Neutron will enable astronauts to provide liquidity, lend, exercise governance rights, strip bonds, etc., using native and liquid-staked ATOM. They will drive demand for ATOM and reduce circulating supply by allowing astronauts 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 within the IBC ecosystem. As primitives like DAODAO, Timewave, and Gitcoin launch on Neutron, the Hub will ultimately have the tools to establish secure, programmatic agreements with other chains, protocols, and treasuries: token swaps, secondary fundraising, loan agreements, protocol-owned liquidity, and more.

Cosmos Hub protects consumer chains through powerful applications, and several applications have already announced partnerships with Neutron:

• Astroport will deploy on Neutron. Astroport is a market-leading multi-chain AMM that will bring liquidity to Neutron and the Atom economic zone. Cosmos Hub proposal #794 aims to express support for Stride's inclusion in AEZ and explore potential synergies between Hub, Stride, Neutron, and Astroport.

• Squid will provide robust cross-chain capabilities for Neutron, enhancing cross-chain communication, simplifying liquidity management, and enabling frictionless partnerships between different blockchain dApps.

• Croncats is bringing automation to Neutron, allowing users and developers to create versatile tasks suitable for various DeFi activities and dApp functions, streamlining the entire ecosystem.

• Through collaboration with Skip Protocol, Neutron will launch mev-tendermint, also known as Skip Select, an off-chain block space auction that will protect the network and its users from harmful forms of transaction sequence manipulation while redistributing value back to the ecosystem.

• Apollo's deployment on Neutron will introduce innovative asset management solutions and unique liquidity provider yield strategies.

• Cosmostation will support Neutron.

• Leap Cosmos will support Neutron dapps.

• Collaboration with Nolus Protocol will enhance the experience for Neutron and Nolus users by unlocking advanced financial functionalities and promoting mutual growth. By leveraging Neutron's technology, users can easily swap, lend, transfer, and engage in various financial activities using assets leased on Nolus.

• Kado is preparing to launch on Neutron, providing seamless connectivity between fiat and cryptocurrencies and enhancing the user experience within the ecosystem.

Neutron is bringing DeFi applications and use cases to the Atom economic zone, and a new ecosystem is rising in the Interchain—one centered around ATOM, aimed at sharing value and growing the cross-chain economic ecosystem.