Liquid ATOM (LATOM)

What is Liquid ATOM (LATOM)?

Liquid ATOM (LATOM) is a liquid staking token that represents staked ATOM on the Veno platform. Veno allows users to stake their ATOM, the native token of the Cosmos network, and receive LATOM in return. LATOM is designed to be an auto-compounding, yield-bearing token, which means that staking rewards are automatically reinvested, increasing the token holder’s balance over time. This approach seeks to enhance the flexibility and accessibility of ATOM staking by providing liquidity to staked assets.

The core objective of Liquid ATOM is to unlock the value of staked ATOM tokens while maintaining their participation in the Cosmos network’s consensus mechanism. By tokenizing staked ATOM, users can participate in decentralized finance (DeFi) applications and other activities without needing to unstake their ATOM, which can be a time-consuming and potentially costly process. LATOM aims to provide a more efficient and versatile way to engage with the Cosmos ecosystem.

The project launched in December 2023, aiming to maximize the utility and adoption of its tokens across the Cosmos ecosystem and beyond, by working with key ecosystem partners. The goal is to provide a reliable, low-fee service for liquid staking.

How Does Liquid ATOM (LATOM) Work?

Liquid ATOM operates as a liquid staking protocol built on the Veno platform. When users stake their ATOM tokens on Veno, they receive LATOM in return. This process essentially tokenizes the staked ATOM, allowing users to access the value of their staked assets without having to unstake them. The underlying staked ATOM continues to participate in the Cosmos network’s consensus mechanism, earning staking rewards which are then reflected in the increasing value of LATOM.

LATOM tokens are designed to be auto-compounding, meaning that the staking rewards earned by the underlying ATOM are automatically reinvested. This allows LATOM holders to passively increase their holdings over time, without needing to manually claim and restake their rewards. This feature simplifies the staking process and enhances the potential returns for LATOM holders.

Veno employs its own node infrastructure or partners’ infrastructure to reduce costs and improve reliability. An insurance module has also been put in place to protect users in the event of a slashing penalty, to ensure the security of user funds.

Liquid ATOM (LATOM) Key Features and Technology

LATOM’s key feature is its liquid staking functionality. It enables users to stake ATOM and receive a liquid, tradable token representing their staked position. This provides increased flexibility and allows users to participate in various DeFi activities without the limitations of traditional staking. The following points outline other important key features:

• Auto-Compounding: Staking rewards are automatically reinvested, increasing the value of LATOM over time.
• Liquid Staking: LATOM provides liquidity to staked ATOM, allowing users to access the value of their staked assets without unstaking.
• Vertically Integrated Protocol: Veno aims to maximize reliability and efficiency, in order to provide a price-competitive service in the long term.
• Insurance Module: Users funds are secured in the unlikely event of a slashing penalty.

The technology behind LATOM relies on smart contracts deployed on a compatible blockchain network. These smart contracts manage the staking and unstaking processes, mint and burn LATOM tokens, and distribute staking rewards. The specific blockchain used by Veno is important for determining the interoperability and functionality of LATOM within the broader DeFi ecosystem. A tradeable NFT will also be available after a user unstakes their CRO.

What is Liquid ATOM (LATOM) Used For?

The primary use case for Liquid ATOM is to provide liquidity to staked ATOM tokens. By holding LATOM, users can participate in various DeFi applications. This can include providing liquidity to decentralized exchanges (DEXs), lending and borrowing platforms, and other yield-generating opportunities. LATOM aims to unlock the value of staked ATOM, allowing users to earn additional rewards beyond traditional staking.

LATOM can also be used as collateral in lending and borrowing protocols. Its auto-compounding nature makes it an attractive asset for lenders and borrowers alike, as it provides a yield-bearing collateral option. As the Cosmos ecosystem grows, LATOM is expected to find increasing utility within various DeFi protocols. The goal is to maximize the liquidity of LATOM.

Ultimately, LATOM aims to foster greater participation in the Cosmos ecosystem by providing a more flexible and accessible way to stake ATOM. It provides a composable building block for DeFi applications, creating new opportunities for users to earn rewards and participate in the decentralized economy.

How Do You Buy Liquid ATOM (LATOM)?

Buying LATOM typically involves using a cryptocurrency exchange that supports the token. This process usually requires you to have an account on the exchange and to deposit funds, either in the form of another cryptocurrency or fiat currency, depending on the exchange’s capabilities. Then you can exchange your funds for LATOM.

The specific exchanges that list LATOM may vary over time. Potential platforms where you might find LATOM include centralized exchanges (CEXs) and decentralized exchanges (DEXs) that operate within the Cosmos ecosystem. Some exchanges may require you to complete a Know Your Customer (KYC) process before you can trade. It is best practice to check the official Veno website, or CoinGecko to determine the exchanges that support LATOM.

Before buying LATOM, it’s essential to do your own research and understand the risks involved in trading cryptocurrencies. Make sure to use a reputable exchange and to follow secure practices when handling your digital assets. Also, ensure that the exchange you are using is available and legally compliant in your jurisdiction.

How Do You Store Liquid ATOM (LATOM)?

Storing LATOM requires a compatible cryptocurrency wallet that supports the token and the blockchain it operates on. There are generally two main types of wallets available: software wallets and hardware wallets. Software wallets are applications that can be downloaded onto your computer or mobile device, while hardware wallets are physical devices that store your private keys offline.

For software wallets, options include desktop wallets, mobile wallets, and browser extension wallets. Some popular choices for storing tokens within the Cosmos ecosystem might include wallets that support the Cosmos network and its tokens. For hardware wallets, Ledger and Trezor are common options that offer secure offline storage for various cryptocurrencies, including those within the Cosmos ecosystem.

When choosing a wallet, it’s important to consider security features, ease of use, and compatibility with LATOM. Always ensure you backup your wallet’s seed phrase or private keys, as this is essential for recovering your funds if your wallet is lost or damaged. Also, enable two-factor authentication (2FA) whenever possible to add an extra layer of security to your account.

Future Outlook and Analysis for Liquid ATOM (LATOM)

The future outlook for Liquid ATOM is closely tied to the growth and adoption of the Cosmos ecosystem and the broader DeFi space. As more users and projects join the Cosmos network, the demand for liquid staking solutions like LATOM is expected to increase. The ability to unlock the value of staked ATOM and participate in various DeFi activities without unstaking offers a compelling value proposition.

The success of LATOM will depend on several factors, including its ability to attract users, maintain the security of its protocol, and integrate with other DeFi platforms. Competition from other liquid staking solutions is also a consideration. The Veno platform’s ability to innovate and adapt to the evolving needs of the Cosmos ecosystem will be crucial for LATOM’s long-term success. Additionally, as previously mentioned, the success of the token will also be determined by the maximization of liquidity of the LATOM token.

Overall, Liquid ATOM has the potential to play a significant role in the growth of the Cosmos DeFi ecosystem. Its liquid staking functionality and auto-compounding rewards offer a compelling value proposition for ATOM holders. The tokens future success will rely on continued development, community adoption, and a secure and reliable platform.

References

• CoinGecko
• CoinDesk
• Veno Finance Website