Core Recommendation
The Interchain Foundation (ICF) shall allocate $10 million USD (or equivalent in stablecoins/ATOM) from its ecosystem treasury to make a strategic investment in dYdX, in the form of token purchase or ecosystem grant, with a long-term holding period and deep strategic collaboration.
Investment Rationale
1. Address Cosmos’ biggest weakness: real user traffic and sustainable revenue
Cosmos has long been strong in technology but weak in flagship applications. dYdX is the leading decentralized derivatives platform and the most high-profile application chain built with Cosmos SDK. It can bring substantial trading volume, mainstream users, and capital, shifting the ecosystem narrative from technology-focused to results-driven.
2. High cost-effectiveness of a $10 million investment
With dYdX’s market cap at a relatively low level, $10 million can secure a meaningful position while minimally straining the ICF treasury. The potential return on investment far exceeds that of supporting typical early-stage projects.
3. Strengthen Cosmos’ leadership in app-chains and derivatives
dYdX is Cosmos’ flagship competitor against Ethereum and Solana-based derivatives ecosystems. A strategic investment will lock in alignment, prevent migration to other ecosystems, and signal to the market that Cosmos can support and scale top-tier DeFi applications.
4. Improve value capture for ATOM
Through strategic investment and partnership, promote deeper integration between dYdX and ATOM:
- Use ATOM as a key collateral asset on dYdX
- Boost IBC cross-chain activity and liquidity
- Share a portion of dYdX’s revenue with ATOM stakers
This will alleviate ATOM’s high inflation and weak value-accretion issues.
Terms & Conditions (Suggested)
- Funds shall be used specifically for dYdX v4 liquidity incentives, user growth, and IBC ecosystem integration.
- dYdX will prioritize support for IBC assets (ATOM, native USDC, and other Cosmos ecosystem tokens).
- The ICF shall obtain corresponding governance rights to align long-term interests.
Summary
A $10 million strategic investment in dYdX is a highly efficient way to drive Cosmos mainstream adoption, activate real economic activity, and enhance fundamental value for ATOM. It will serve as a landmark move for the long-term development of the entire interchain ecosystem.