Briefing
The Hatom Protocol has deployed a full-suite decentralized finance primitive on MultiversX, decisively integrating liquid staking and a customizable money market. This launch’s primary consequence is the immediate transformation of the network’s native EGLD token into a capital-efficient, liquid asset, fundamentally altering user behavior by eliminating the opportunity cost of staking. The protocol is engineered to attract an influx of new capital to the MultiversX ecosystem, which currently has approximately 65% of its circulating supply already staked, providing a massive pool for immediate liquidity generation.
Context
Prior to this launch, the MultiversX ecosystem’s high-performance architecture lacked a premier, integrated DeFi environment capable of fully leveraging its speed and low cost. The prevailing user friction centered on staked EGLD, which, while securing the network, remained illiquid and inert within the DeFi landscape. This product gap → the absence of a core money market and liquid staking mechanism → prevented the network from attracting substantial external capital and limited the composability of its native asset, effectively capping the total addressable market for decentralized applications on the chain.
Analysis
Hatom’s architecture fundamentally alters the application layer by introducing a composable Liquid Staking Derivative (LSD) for EGLD, which becomes the foundational collateral for the lending protocol. This creates a powerful flywheel → users stake EGLD for network security and yield, receive a liquid derivative, and then use that derivative to borrow stablecoins or other assets within the same application. The chain of cause and effect for the end-user is a dramatic increase in capital efficiency, allowing them to earn staking yield while simultaneously accessing leverage or liquidity. Competing protocols on MultiversX must now integrate this new liquid staking primitive to remain competitive, as the protocol’s design also allows established DAOs to permissionlessly create their own highly customizable, segregated lending markets, establishing Hatom as a core infrastructure layer.
Parameters
- 65% of Circulating Supply Staked → This percentage of EGLD is currently staked to secure the network, representing the total illiquid capital pool Hatom aims to unlock.
- Core Function → Liquid Staking Derivative → The mechanism that issues a liquid, tradable token representing staked EGLD, allowing it to be used as collateral.
- Innovation → Customizable Money Markets → The ability for other DAOs to permissionlessly launch their own lending pools with tailored parameters like collateral factors and liquidation thresholds.
- Ecosystem → MultiversX Network → The underlying Layer-1 blockchain where the protocol is deployed, characterized by high scalability and low costs.
Outlook
The immediate strategic outlook centers on Hatom’s potential to become the foundational liquidity primitive for the entire MultiversX DeFi ecosystem. The next phase of the roadmap will likely involve a deep integration with other dApps, enabling the EGLD liquid staking derivative to be used across DEXs and yield aggregators. The permissionless nature of the money market creation module sets a high bar for competitors; the innovation is not easily forked, as it requires deep integration with the Layer-1’s staking module and a robust risk management framework. This architecture positions Hatom to capture significant protocol revenue by serving as the essential capital layer for all future financial applications on the network.
Verdict
The Hatom Protocol launch represents a critical inflection point for MultiversX, establishing the essential liquidity and composability infrastructure required to scale its decentralized finance total value locked.
