PANews reported on May 22 that according to official news, Cosmos announced the launch of the cross-chain auction platform Hydro. Hydro is a bidding and governance platform for efficient deployment of liquidity in the cross-chain ecosystem and is a core part of the "ATOM wars". Hydro draws on the "Curve wars" on Ethereum and applies a similar model to enhance governance and strategic liquidity provision.

Hydro will enable the Cosmos Hub and other projects to take advantage of other projects' demand to add ATOM and other token liquidity to their systems. Hydro provides key features such as token locking, voting rights, bidding rules, voting rules, and fund allocation rules. Native token holders lock their tokens on the platform in exchange for "Hydro Locked Tokens" which grant them influence over fund allocation decisions through a series of periodic auctions.

Projects compete for access to these funds through the governance power of hATOM holders (although Hydro may accept locks of multiple native tokens in the future, the current focus is on (ATOM/hATOM). This process operates as an auction market. Allocations of funds to projects are temporary (similar to loans), promoting competition and ensuring resources are distributed to multiple projects over time.