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evanorti committed Feb 5, 2024
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Alliance is an open-source Cosmos SDK module that leverages interchain staking to form economic alliances among blockchains. By boosting the economic activity across Cosmos chains through creating bilateral, mutually beneficial relationships—similar to trade agreements between countries—Alliance aims to give rise to a new wave of innovation, user adoption, and cross-chain collaboration.


## Here’s how Alliance works:​

- First, a chain [integrates the Alliance module](./guides/get-started.mdx). Alliance is compatible with all Cosmos SDK blockchains and can be integrated with minimal configuration.
- Second, community members decide through governance which assets can be staked on their chain to earn staking rewards and be redistributed to the chain’s token stakers. These are known as [Alliance assets](./alliance.mdx#what-are-alliance-assets). Almost any token can qualify as an Alliance asset, including liquid staking tokens from other blockchains, liquidity provider tokens, receipt tokens from depositing into applications, and stablecoins.
- Each Alliance asset is assigned a [Take Rate](./alliance.mdx#the-take-rate) (i.e., the percentage of staked Alliance assets the chain redistributes to native token stakers) and a [Reward Weight](./alliance.mdx#rewards) (i.e., the percentage of native staking rewards the chain distributes to Alliance asset stakers).
- Once a chain has whitelisted Alliance assets, any user can stake those tokens on the chain to earn Alliance yield (i.e., that asset’s Reward Weight). If the Alliance asset is from another chain (e.g., a liquid staking token), users can send the Alliance asset to the chain they’d like to stake on via IBC.

Check out this [step-by-step guide](https://medium.com/terra-money/how-to-stake-alliance-assets-a-step-by-step-guide-8e1b263830c2) on how to stake Alliance assets and this [short animated video](https://youtu.be/Xoe9hTzKyeo?si=gIGEALBAaFi9iAPz) for a visual explanation of how Alliance works and how alliances are formed.

## Use Cases​

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