Drop

The Interchain has seen tremendous growth, but billions of dollars are still staked and unusable. Capital constraints like this impede ecosystem growth and increase the network’s risk of failure. Drop is on a mission to strengthen the economic viability of sovereign blockchain economies by transforming stagnant, frozen assets into flowing streams of opportunity.

Drop is a liquid staking app. When a user stakes with Drop, they receive dAssets, which are receipt tokens representing a staked position. For example, if a user stakes ATOM with Drop, they receive dATOM. 

Drop has a security-obsessed culture. Drop’s modular smart contract architecture, built as an Integrated Application on Neutron, contributes to the overall security of the protocol: - Protocol upgrades do not introduce systemic risk. Instead, they can introduce new functionality with minimal code changes. - Modularization contains risk: If a component fails, the system simply pauses, improving the protocol's security and recoverability. - Modularization enables better risk response: If an issue is detected with a component, that specific component can be safely paused and a fix introduced while the rest of the protocol continues to operate properly. - Due to components being standardized and reusable, the underlying code becomes increasingly battle-tested as time passes.

Built as an Integrated Application on Neutron, Drop’s unique smart contract architecture has several advantages over other liquid staking models. One of these is synchronous composability, which translates to higher yield and greater flexibility for users. This allows Drop’s smart contracts to interact seamlessly and atomically with other smart contract applications on Neutron, unlocking new capital-efficient use cases, such as leveraged staking with zero slippage or trade fees. Another is trust minimization and scalability. New networks and assets can be onboarded in a single transaction, and smart contract components can be reused to provide new products and services with minimal or no additional code or attack surface. Drop is also led by ex-Lido and P2P contributors and is a member of the Lido Alliance, giving Drop access to greater distribution, liquidity, networking opportunities, and strategic/technical insights via Lido.

Drop currently supports liquid staking for ATOM, with support for TIA coming soon. Other Interchain assets will be added in the future.

Misbehaving or low-performing validators will be removed from Drop’s validator set, and their stake will be redistributed across the remaining set.