Drop Protocol: Cosmos Liquid Staking & DeFi Guide
Everything you need to know to stake ATOM, mint dATOM, and earn Drop points (Droplets) with Chorus One.
What is Drop Protocol?
Drop is a liquid staking protocol for Interchain assets. It helps Cosmos blockchains by turning staked assets into active opportunities.
Built on Neutron, Drop uses Inter-Blockchain Communication (IBC), Interchain Transactions (ICTX), and Interchain Queries (ICQ) to offer secure and efficient liquid staking services.
Its CosmWasm-based smart contracts enable seamless asset transfers across Cosmos blockchains.
Through the Token Factory standard, Drop mints liquid staking tokens (called dAssets) like dATOM and dTIA. These tokens let users earn staking rewards without locking up their assets, participate in DeFi opportunities, and remain eligible for airdrops.
How to Liquid Stake with Drop
There are two simple ways to liquid stake with Drop. For this example, we’ll use ATOM as the asset.
For Liquid ATOM
If you already have liquid ATOM, you can easily stake it with Drop validators through the Drop platform.
For Staked ATOM:
If your ATOMs are already staked and you want to liquid stake them, you’ll need to use the Liquid Staking Module.
This process is straightforward and can be done directly via the Drop UI too.
Once completed, you will get access to the following interface:
Next, connect your wallet. You can use Keplr or any other compatible Cosmos wallet of your choice.
After connecting your wallet, you’ll access the main interface. From there, click on the 'Stake' section to begin staking your ATOM.
For Liquid ATOM
If you have native ATOM and want to stake, you can use the first option ‘Wallet balance’ and insert the number of Native ATOM that you want to stake, Drop will then show you the number of dATOM you will get in exchange.
Next, review your transaction and confirm.
You are now staking with Drop!
This delegation is split among the Drop validator set.
For Staked ATOM
If you already have staked ATOM and want to convert it into dATOM, select the 'Staked Balance' option.
This will display your staked ATOM balance and the validator you are currently staking with.
Finally, choose the amount of ATOM from your staked balance that you want to convert into dATOM.
Simply confirm the transaction in your wallet and the dATOM will be added directly to your balance!
Droplets Program & DeFi Strategies
The Drop Protocol will not have a token in its first few months. During this time, the Droplets Program will reward users for supporting the protocol.
A total of 100,000,000 DROP tokens, the governance token of Drop Protocol, will be distributed through the program.
You can earn Droplets by:
Liquid staking with Drop.
Using dAssets in other applications.
Referring friends.
When the Droplets Program ends, Droplets holders will receive Drop tokens and become the first members of the Drop DAO.
Different Ways to Earn Droplets
Liquid Stake with Drop
Stake assets like ATOM and TIA to receive dAssets. For each dollar of dAssets you hold, you’ll earn 1 Droplet per day.
dAssets are secure, liquid versions of staked positions that let you earn auto-compounding rewards, exit positions instantly, and use assets in DeFi for extra yield.
Use dAssets in the Drop Ecosystem
Earn more Droplets by using dAssets in Drop ecosystem applications, which often include multipliers for additional rewards.
Let's look at an example:
John stakes $10 of dATOM/ATOM liquidity in Astroport with a 5x multiplier for 10 days.
He earns 500 Droplets (400 more than the 100 he would earn by simply holding dATOM) plus any DeFi rewards Astroport provides!
Refer Friends
You can generate a referral code at droplets.drop.money and share it to earn bonus Droplets!
Earn 25% of the Droplets your referrals earn.
Earn 12.5% of the Droplets their referrals earn.
Let's look at an example of how this could work:
You refer Bob, who earns 100 Droplets.
Bob refers Tina, who earns 100 Droplets.
You earn 25 Droplets from Bob and 12.5 from Tina.
Best of all, these bonuses do not reduce their earnings!
A Quick Recap of Drop Protocol
To help tie it all together, here's an overview to help illustrate all the possibilities you have to bring your assets into DeFi.
Neutron
Provide liquidity on the dATOM/NTRN pool: earn 50x Droplet multiplier + potential trading fees and incentives
50x
3.75% + Droplets
Neutron
Provide liquidity on the dATOM/USDC pool: earn 50x Droplet multiplier + potential trading fees and incentives
50x
10.91% + Droplets
Neutron
Provide liquidity on the dATOM/ATOM pool: earn 5x Droplet multiplier + potential trading fees and incentives
5x
4.81% + Droplets
Neutron
dATOM used as collateral into Mars
3x
Varies
Neutron
dATOM/NTRN LP used as collateral into Mars
50x
Varies
Neutron
dATOM/USDC LP used as collateral into Mars
50x
Varies
Neutron
Provide liquidity in Levana’s perpetual market: dATOM xLP earns 50x multiplier when locked for 45 days
50x
Varies
Neutron
Provide liquidity in Levana’s perpetual market: dATOM LP earns 5x multiplier, without a locking period
5x
Varies
A Note to Institutional Investors
If you are an institutional investor looking to liquid stake ATOM, TIA, or other supported assets using Drop with Chorus One, please reach out to us via our staking request form or contact us at [email protected]
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