QuicksilverZone
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Quicksilver: A Governance Hub

The Quicksilver mission places a great deal of emphasis around governance, highlighting two of our core tenets, decentralization and representation. By upholding these principles, Quicksilver will become a governance hub on Cosmos, all while maximizing returns for all Cosmonauts.

The importance of Governance on Cosmos

Governance is the process by which stakers of an ecosystem vote on different chain decisions. This mechanism was developed to keep voting decisions, such as protocol direction, in the hands of the zones’ respective communities, creating a decentralized ecosystem. The idea is to have the decision power in the hands of many stakers, as opposed to a small few. You can read more about the importance of governance here.

Growing Pains of a Developing Ecosystem

When the high staking APRs in the Cosmos ecosystem drop and a competitive DeFi ecosystem emerges, there is likely to be a large migration of assets from staking to liquid staking protocols and DeFi applications. We already saw a drop in the percentage of assets staked after the launch of Osmosis. As more stakers unbond their staked assets in search of higher APRs, and keeping in mind that increased opportunities are a great sign in the growth of the Cosmos, having fewer governance participants and less staked assets could also have a negative impact on decentralization and network security. Although a fair deal of Cosmonauts would not be willing to unbond as to not jeopardize network security, they would be missing out on potentially higher returns.

While liquid staking should help alleviate this issue in theory, most models of liquid staking do not take governance into account. Users of most liquid staking protocols must give up their voting power to the protocol’s validators. The risk is exacerbated as most liquid staking protocols only use a few whitelisted validators, giving these select few validators more on-chain voting powers. In the future, this could open up a can of economic attack vectors, making the chain less secure and more centralized.

The historic events of the last week highlight the importance of governance in the Cosmos ecosystem. With a 97.8% voter turnout, the Cosmos community was heavily involved in deciding the fate of millions of dollars worth of Juno through Proposal 16. The vibrant discussions that took place reflected two key points: Cosmonauts care deeply about maintaining decentralization and the community will exercise their voting rights.

Quicksilver as a Governance Hub

Through Quicksilver, our users will not only be able stake with whatever validators are available on that native chain, but they will also be able to retain their voting power. We envision stakers, liquidity providers, and all other types of DeFi users participating in protocol governance. The role of the governance hub will be to facilitate this by providing users one point of entrance into all three of these verticals.

Being a governance hub, however, is more than using a permissionless validator sets and allowing users to retain their voting rights. We believe that liquid staking is the way forward in Cosmos — In order for the growing DeFi ecosystem to not dampen vibrant protocol governance, it is important that a solution allows users to do both. For Quicksilver, chain security is the base for a thriving ecosystem. We envision a Cosmos in which all chains are secured via Quicksilver, and all stakers are represented as they take advantage of the opportunities other protocols have to offer.

Stay in touch

The Quicksilver testnet will be launching in Q2 of 2022 — Follow our social channels to stay up to date on our latest news, airdrops, and events.

Twitter: https://twitter.com/quicksilverzone

Telegram: https://t.me/quicksilverzone

Discord: https://discord.gg/xrSmYMDVrQ

Website: https://quicksilver.zone

Whitepaper: https://quicksilver.zone/whitepaper.pdf

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Interchain Liquid Staking for the Cosmos ecosystem and beyond.

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