Composable: Bringing Blockchain Interoperability to the Cosmos Hub and ATOM Economic Zone

Blockchain technology has brought transformative potential to the world of finance and beyond. Yet, for this potential to be fully realized, it's essential that different blockchain ecosystems can seamlessly communicate and transact with one another.

Enter Composable, a trailblazing project that is on a mission to make cross-chain transactions easier, more secure, and more lucrative for everyone involved.

Unlocking the Future with Composable

Imagine a world where blockchains can effortlessly connect, where assets can flow seamlessly across ecosystems, and where security is strengthened through innovative solutions. Composable aims to turn this vision into reality, starting with its integration into the Cosmos Hub.

IBC: Bridging the Gap

At the core of Composable's vision is the Inter-Blockchain Communication (IBC) protocol. Originally designed for trust-minimized communication within the Cosmos SDK ecosystem, Composable has taken a quantum leap forward by extending IBC to other blockchain ecosystems. Notably, Composable has successfully established IBC connections with Polkadot, Kusama, Cosmos, and Ethereum. This expansion marks a significant milestone in blockchain interoperability.

Cosmos Hub: The Nexus of IBC

Cosmos Hub has long harbored ambitions of becoming the central hub for IBC routing. Composable's proposal aligns perfectly with this goal. By integrating with Composable, the Cosmos Hub essentially becomes the gateway through which assets can flow across different ecosystems. This integration promises to bring efficiency and connectivity to new heights.

Exporting ATOM Liquidity: A World of Possibilities

Composable's expansion also ushers in exciting new possibilities, particularly in the realm of liquidity. ATOM, the native token of the Cosmos ecosystem, can now flow to Ethereum, Solana, and other ecosystems, unlocking novel use cases. Users can even pay IBC gas fees using ATOM, making it a versatile and valuable asset.

Fortifying Security: Restaked Validator Layer and EigenLayer

Security is paramount in the blockchain space, and Composable leaves no stone unturned. The project is introducing a restaked validator layer, where users and validators stake IBC-enabled liquid staking tokens. This layer serves multiple use cases, including bootstrapping new Cosmos chains and supporting bridging on chains without state proofs.

Composable is also tapping into EigenLayer (EL), an Ethereum protocol for restaking, to enhance its security. By doing so, Composable aims to bolster the security of both Ethereum and Cosmos, fostering a safer environment for all participants.

IBC as a Mechanism for Orderflow Routing

Composable's innovation goes beyond asset transfers. They have developed the Composable Virtual Machine (VM), designed to interface with any execution framework through IBC. This enables users to submit transaction intentions from various chains. Solvers then generate solutions, incentivized to do so. Composable becomes a hub for orderflow processing and routing across different ecosystems.

The Proposal and Its Impact

Composable's proposal to join the ATOM Economic Zone (AEZ) and integrate Interchain Security (ICS) from the Cosmos Hub promises substantial benefits. If approved, Composable will share 20% of IBC bridging fees with all ecosystems connected via the Cosmos Hub. In addition, 20% of inflationary staking rewards will be allocated to the Hub. Cosmos Hub validators can also operate relayer side cars in Composable's ecosystem, capturing valuable MEV from order flow auctions.