Hydro said it is opening its ATOM, BTC, and USD Inflow vaults directly on the Cosmos Hub before end-June 2026, moving ahead without the 7 million ATOM community pool deployment rejected by governance in January.
The vaults accept native ATOM, stATOM, dATOM, and LSM shares. Deposited capital is routed into market-neutral, low-risk positions targeting yields above standard staking rates.
Launch proceeds without public funding
The launch is separate from Cosmos Hub Governance Proposal #1022, which sought to seed Hydro's vaults with 7 million ATOM from the community pool. The proposal was rejected on January 19, 2026, with 58.22% of voting power voting No, 10.63% in favour, 0.46% vetoing, and 30.68% abstaining.
Cosmostation voted No, citing difficulty enforcing accountability and clawbacks on community funds continuously deployed into DeFi. Hydro is proceeding under its own infrastructure, funded by private capital.
Cosmos Hub DeFi gets an on-chain test
The Cosmos Hub has historically generated little organic DeFi activity, with most yield routing through connected appchains such as Osmosis. Informal Systems, which built Hydro, has said other projects are also migrating contracts to the hub.
No TVL figure was available from on-chain data at the time of filing; DefiLlama's Cosmos Hub chain page was inaccessible.