IBC Eureka: A Game-Changer for Blockchain Interoperability

On April 10, 2025, the Cosmos ecosystem launched IBC Eureka, a ground-breaking interoperability solution redefining how blockchains connect & interact with each other.

IBC Eureka enables fast and low cost asset transfers between Ethereum and Cosmos chains, with plans to expand to Solana and L2s like Base, and Arbitrum soon.

Eureka = IBC v2

IBC Eureka upgrades the Inter-Blockchain Communication (IBC) protocol to version 2, using tools like Succinct’s SP1 for Ethereum light client proofs and Skip:Go for 1-click transfers. It leverages the Cosmos Hub as a coordination layer, allowing chains to tap into over 115 IBC-connected blockchains by simply connecting to the Hub via IBC.

The Cosmos Hub and IBC Eureka

Eureka is a milestone for true multichain experiences. It eliminates traditional bridge issues like fragmented liquidity by offering a high-security, protocol-native connection. The Cosmos Hub plays a crucial role here, by acting as a transaction router and coordination layer for chains and apps connected to Eureka.

With Eureka, chains only need 1 IBC connection to the Cosmos Hub to gain access to the entire Cosmos ecosystem, rather than spinning up single connections to every chain.

This positions the Hub to become a flagship marketplace for interchain services, linking blockchain service providers to the appchain ecosystem.

Think any user, any asset, any protocol - accessible anywhere over IBC through the Hub.

Eureka Early Adopters

IBC Eureka launched with a robust set of ecosystem launch partners. Babylon leverages Eureka to enable Bitcoin LST & LRT transfers, while DeFi platforms like Injective and Elys and support assets such as WETH and LBTC. Upcoming integrations include dYdX for unlocking spot trading or multi asset margining and MANTRA for bridging institutional capital into Cosmos-based RWA markets.

The Eureka Flywheel Effect

Eureka creates a self-reinforcing cycle:

1) Appchains join Eureka by connecting to the Cosmos Hub via IBC.

2) Multichain apps (DEXs, money markets, stablecoins, NFT marketplaces) deploy on the Hub to offer services to these appchains via IBC.

3) Indexers, explorers, etc launch to service the apps.

4) Improving the overall service quality & offering attracting more appchains.

This flywheel effect of appchains launching around the Hub and apps launching ontop of the Hub servicing these chains could make Cosmos the go-to ecosystem for multichain innovation, with IBC Eureka as the backbone.

The Road Ahead

In this future, IBC Eureka essentially becomes the only bridge in existence with its own native DeFi ecosystem. Value capture, revenue, and growth become vertically integrated instead of outsourced to external applications, all for the benefit of $ATOM.

• Onboarding to Babylon from Arbitrum? Users may want to swap from USDC to BABY along the way, they can do that directly on the Cosmos Hub.

• Swapping from SOL to BNB on one chain in a single block? Only possible on the Cosmos Hub.

• Borrow ATOM against SOL? => Only possible on Cosmos Hub.

• Short BTC against BABY? => Only on Cosmos Hub.

If Eureka wins, the Cosmos Hub could attract the widest selection of deep major token trading pools and lending pools in crypto. @Riley

IBC Eureka: One Network, infinite chains!

Thanks for reading folks!

We hope this article helped you stay up-to-date with the latest developments in the Cosmos ecosystem.

Disclaimer

This article is intended to educate readers about certain topics and should not be considered financial advice in any way.