CosmBank officially launched: reshaping the Algorithmic Stablecoin paradigm, leading the next generation of Decentralized Finance 3.0 infrastructure.

May 8, 2025 20:00 (UTC+8) — At a critical stage where the DeFi industry has experienced iterations of Algorithmic Stablecoin, an explosion of RWA assets, and the fusion of AI + Web3, the next-generation financial protocol CosmFinance, driven by the high-performance public chain CosmChain, officially announces the full functionality launch of its core pillar CosmBank. As the industry's first DeFi protocol to deeply integrate Algorithmic non-stablecoins, RWA asset liquidity, and AI-driven financial models, the launch of CosmBank marks the official entry of Decentralized Finance into the 3.0 era centered around 'Programmable Real Economy.'

Industry Positioning: Filling the structural gap between Algorithmic Stablecoins and real assets.

The current DeFi market is facing two major core challenges:

1. The sustainability dilemma of algorithmic stablecoins: Most projects rely on pure game theory models (such as the death spiral of LUNA-UST), lacking a buffer mechanism of real assets.

2. Liquidity fragmentation of RWA assets: Traditional institutional assets find it difficult to interact seamlessly with on-chain DeFi, leading to a significant yield ceiling.

CosmBank reconstructs the value logic of stablecoins through its original "three-tier asset anchoring" model (Algorithm adjustment + RWA collateral + AI dynamic hedging):

Layer1: A high throughput (10,000+ TPS) and zero-knowledge proof (ZKP) privacy settlement layer based on CosmChain, ensuring transparency of underlying assets.

Layer2: Accessing compliant RWA assets (such as U.S. Treasury bonds, commercial papers) through CosmHub to provide off-chain value support for CSM tokens.

Layer3: The AI oracle of CosmFund analyzes market fluctuations in real-time, dynamically adjusting the staking rate and the allocation of treasury assets to achieve systemic risk hedging.

This architecture makes CosmBank the first protocol to implement a "on-chain-off-chain-algorithm" three-dimensional stability mechanism, which has been described by industry experts as the "ultimate integration of Ampleforth mechanism upgrade + MakerDAO RWA module + Chainlink AI oracle."

Technological Breakthroughs: The Four Core Innovations Defining DeFi 3.0

1. Dynamic Staking Derivatives (sCSM)

The sCSM obtained by users staking CSM is not only a certificate of earnings but also serves as a cross-protocol liquidity carrier, directly usable for RWA bond subscriptions on CosmHub or AI data staking on CosmFund, achieving "single coin multi-dimensional yield aggregation."

2. AI-Optimized Bonding Curve

Traditional Bond protocols rely on fixed curves, leading to liquidity exhaustion under unidirectional market fluctuations. CosmBank introduces a deep reinforcement learning (DRL) model trained by CosmFund to optimize treasury bond pricing in real time, reducing APY volatility by 63% (based on internal stress test data).

3. On-chain securitization standard for RWA assets (CosmSec-20)

Through the CosmSec-20 protocol released by CosmHub, RWA assets such as U.S. Treasury bonds and real estate are converted into token standards that meet DeFi compliance requirements, supporting programmable permission management in accordance with KYC/AML, and have been certified by the Monetary Authority of Singapore (MAS) sandbox.

4. Anti-MEV Trading Engine

The integrated threshold encrypted memory pool (TFM) of CosmChain and the batch auction mechanism have reduced slippage losses caused by arbitrage bots from the industry average of 1.2% to below 0.3% (Data source: Delphi Digital benchmarking).

Ecological Collaboration: Building the "Flywheel Effect" of Web3 Finance

The three pillars of CosmFinance form a closed-loop economic model:

CosmBank provides stable liquidity foundation. CosmHub injects RWA asset returns. CosmFund enhances capital efficiency through AI, feeding back into the protocol revenue of CosmBank.

According to Messari analysts, this model is expected to push the protocol's TVL to the $5 billion level within 12 months, capturing over 30% market share in the algorithmic stablecoin sector.

Experience Now:

About CosmFinance

CosmFinance is a multidimensional financial ecosystem driven by CosmChain (underlying public chain), which includes three core applications: CosmBank (Algorithmic Non-Stablecoin), CosmHub (RWA+DeFi Asset Hub), and CosmFund (AI-driven Investment Protocol).