User FAQ

Why is my wallet connected to Neutron? Isn’t this for ATOM holders?

When using Hydro, your wallet may connect to Neutron because the Hydro smart contract is currently on Neutron. However, Hydro is designed for staked ATOM holders, so your ATOM stake and voting power are still linked to the Cosmos Hub. Neutron is simply a tool for processing your actions more efficiently.

What does “Voting Power” mean, and how do I get it?

Voting power is how much influence you have when voting on proposals. To get voting power, you need to lock up your staked ATOM on Hydro. The more ATOM you lock and the longer the lock-up period, the more voting power you receive. Locking your ATOM grants you the ability to participate in decision-making by voting for projects on Hydro.

What are “tributes,” and why are they important?

Tributes are the rewards that projects offer to attract your votes. When you vote for a project, you are essentially “locking” your support in exchange for a share of the tributes. These tributes are distributed to voters after the round ends, and they can vary from project to project. Think of tributes as the incentive projects offer to win your vote!

Why do I need to approve multiple transactions when locking up my ATOM? Can this be done in one step?

Currently, locking up your ATOM requires multiple approvals to ensure security and transparency. These approvals include confirming your voting power and finalizing the lock-up period. We understand this can be time-consuming, and we are working on simplifying the process in future updates. We’ll also add clearer guidance so you know exactly what each step involves.

I encountered a transaction error. What should I do?

If you receive a transaction error, it could be due to an issue with the network, gas fees, or a minimum lock-up amount. First, check that you have enough ATOM staked and gas available for the transaction. If the error persists, please take a screenshot and share it in the Telegram channel for support. We’re here to help resolve any issues with the Hydro system.

Where did my ATOM go after I got voting power?

When you lock up your ATOM to gain voting power on Hydro, your ATOM is converted into Liquid Staking Module (LSM) shares, which are then sent to the Hydro contract. You haven’t lost any ATOM; it’s just been converted into LSM shares that represent your stake in the system.

Here are a few key things to know:

• Voting in Cosmos Hub Governance: You won’t be able to vote in Cosmos Hub governance with the staked ATOM that you converted to LSM shares. You are now using that ATOM to participate in Hydro governance.
• Airdrop Eligibility: You may or may not stil be eligible for airdrops for the staked ATOM that you converted to LSM shares. Some projects may not query your LSM shares. However, Hydro will feature an airdrop endpoint for projects to query and the Hydro team will work with the Cosmos core teams to update documentation to include this information for projects in the future. This could make you eligible for new airdrops because your participation in Hydro shows that you’re actively participating in the Cosmos ecosystem.

How do I know which project to vote for? What does “bidding” mean?

Bidding is the process by which projects compete for liquidity on Hydro. Each project offers tributes as rewards to attract your vote. When deciding which project to vote for, you can consider the tributes they offer, their proposal goals, and their potential impact on the ecosystem. We recommend reading each project’s details before making your decision, and you can always view how others are voting as well.

What is APR, and why is it relevant to voting?

APR (Annual Percentage Rate) shows the potential return you can earn from your locked ATOM, including rewards from tributes. It gives you a snapshot of how much you could gain by participating in the Hydro voting process. Keep in mind that this APR may fluctuate as more voters participate or as projects adjust their tributes. You’ll see a real-time APR when locking your ATOM and voting on proposals. For more details on the Hydro APR, check out the dedicated page in the user documentation.

Can I change my vote after I’ve locked my ATOM?

Yes! Hydro allows you to change your vote after locking your ATOM. If you decide to support a different project during the voting round, you can switch your vote. However, you can only vote for one project per tranche, per round, so if you want to change your vote you’ll need to adjust it within the same tranche.

What should I do if I’m unsure about a step or encounter an issue?

If you’re unsure about any part of the process or encounter a problem, don’t worry! Join our Telegram channel and post your questions or concerns. For any technical errors, please share screenshots in the channel. Our team and community members will be there to assist you.