The Cosmos SDK is an open-source framework for building sovereign, application-specific blockchains that can interoperate. It allows developers to create custom blockchains from scratch rather than deploying smart contracts on an existing one.
AGON runs on Base, an Ethereum L2. We made this choice deliberately to access Ethereum's deep liquidity, battle-tested security, and massive user base. The Cosmos SDK represents a fundamentally different architectural path: the "app-chain" thesis.
A project built with the Cosmos SDK becomes its own sovereign chain. This provides total control over the execution environment, gas fees, and validator logic. The trade-off is significant. It requires bootstrapping a new network's security and liquidity from zero. Understanding this distinction clarifies AGON's strategy: we prioritize leveraging the network effects of the dominant settlement layer over building a siloed ecosystem.
A team chooses the Cosmos SDK when an application's requirements cannot be met by an EVM smart contract. This usually involves needing custom, low-level logic, a unique fee structure, or performance that a shared blockspace cannot guarantee. The prime example is dYdX, which migrated to its own Cosmos chain to implement a fully on-chain central limit order book.
The rule of thumb: use the Cosmos SDK if your protocol is the entire business and demands sovereignty. If you need to ship fast and tap into existing DeFi liquidity without having to ape into bootstrapping a validator set, you build on an L2. It's a clear trade-off between modularity and maximalism.
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