Hydro allows ATOM stakers to allocate liquidity by locking their staked ATOM (in the form of LSM shares) and voting on project bids. Hydro has been designed as a platform onto which a DeFI ecosystem can be built. A key element of Hydro’s success is vote aggregators, which streamline voting for ATOM stakers by abstracting away the complexities of manual voting.
Vote aggregators would allow users to deposit their LSM shares into a pool managed by the aggregator, which would then vote on behalf of the users.
Zephyrus purpose is to be a vote aggregator built on top of Hydro, allowing for:
- Zephyrus’ Approach to User Simplicity: Zephyrus is designed to minimize user effort: users simply send their Liquid Staking Module (LSM) shares to Zephyrus, requiring no additional actions. From there, they earn yield from Hydro on top of their staking rewards, ensuring a seamless experience.
- Guarantees for Users: Zephyrus aims to provide users with a guarantee, similar to Hydro’s model, enabling them to recover their initial investment in LSM shares. This approach contrasts with potential offerings from other vote aggregators (like Curve), which may lock LSM shares indefinitely with Hydro.
- Flexible Exit Options: Zephyrus prioritizes flexibility by allowing users to exit their positions quickly and with minimal loss, recognizing that Hydro locks may not suit everyone’s preferences.
- Opportunities for Hydro Allocation Strategists: Zephyrus enables Hydro allocation strategists to offer their strategies to users for a small commission fee. Strategists can range from individuals to DAOs, Smart Contracts, or even ICA accounts controlled by IBC-connected blockchains.
- Delegation and Customization: Zephyrus allows users to delegate their locked ATOMs to one or more Hydro strategists, earning rewards based on the chosen strategy. Users can also override their strategist’s decisions by voting directly for specific projects in a round, similar to Cosmos’ familiar validator vote override mechanism.
This grant allocates $50,000 for the development of this dApp above Hydro, and allocates a budget of up to $35,000 for auditing the dApp.
