Stride Explained

Stride is revolutionizing the way assets are staked in the Cosmos ecosystem. It presents a seamless method for users to engage in liquid staking, an innovative concept that allows token staking from any Cosmos chain, with the advantage of receiving liquid staked tokens in return. This smart integration of conventional staking processes within the DeFi ecosystem offers users the chance to enhance both the liquidity and utilization of their staked assets.

At its core, Stride’s platform is designed to address and bridge the prevalent issue of liquidity in cryptocurrency staking. It enables a secure environment where users benefit from the growth potential of their assets without sacrificing participation in the wider financial ecosystem. By doing so, Stride stands at the forefront of a movement aiming to enrich the staking experience.

Key Takeaways

  • Stride is providing a liquid staking solution within the Cosmos network, improving liquidity and asset utility.
  • The platform melds traditional staking with DeFi benefits while ensuring asset security.
  • Stride’s innovative solution addresses the need for asset liquidity without compromising on security.

What Is Stride’s Role in the Blockchain Space?

Liquid staking on Stride (source)

Stride stands as a prominent blockchain within the Cosmos ecosystem, aiming to improve the versatility and tradeability of staked crypto assets. It achieves this by providing a service that allows liquid staking. Users participating in any of the Cosmos network chains have the opportunity to stake their digital tokens and, in return, obtain an equivalent in liquid staked tokens. This innovative service enables users to accrue stake rewards simultaneously while also partaking in the decentralized financial (DeFi) space.

Supported ChainsFunctionality
Cosmos HubLiquid staking & rewards
OsmosisAsset liquidity
CelestiaDeFi integration
Stride’s supported chains and their respective functionalities

Stride’s mechanism effectively counters the conventional staking challenge of asset immobility by ensuring these assets are fluid and capable of being traded. This strategic approach stimulates a dynamic and adaptable DeFi environment, beneficially expanding within the Cosmos framework.

What are Stride’s key Use Cases?

Stride enhances the usability of staked tokens by enabling a process known as liquid staking. This process converts staked tokens, which typically cannot be traded or used, into liquid assets. Here’s the sequence of actions within the Stride system:

  • Stake Your Crypto: Individuals contribute their tokens to Stride from any compatible Cosmos network chain.
  • Acquire stTokens: Participants receive stTokens in return, representing their initial stake plus the ongoing rewards.
  • Compounding Rewards: The staked tokens earn rewards, increasing the stTokens’ value.
  • Engage with DeFi: Holders may utilize their stTokens across various decentralized finance (DeFi) platforms to gain further returns.
  • Token Redemption: At any point, stTokens can be exchanged back for the initial tokens along with any accumulated rewards; Stride then begins the unbonding phase on the originating blockchain.

This approach offers participants the flexibility to remain liquid and take part in DeFi ventures while still contributing to the network’s stability through staking.

What Is STRD and How does Stride’s Economic Structure Look Like?

The economic structure of Stride is strategically designed with the STRD token playing a central role. It serves to distribute control over governance, encourage the use of liquid staking, and ultimately increase the token’s intrinsic value within the Cosmos network. The standout feature of Stride is its provision of premium liquid staking solutions, supported by strong security measures and designed for an outstanding user experience.

AspectDescription
Originating AllocationAn initial dispersal of 9.2 million STRD tokens, adjusted post allocations for future airdrops and reserved funds.
Upper LimitA maximum of 100 million STRD tokens, set out to be distributed quickly, with half in the market after two years and 95% by the close of the third year.
Yearly ReductionBeginning with a supply of 9.45 million STRD, the output decreases by half every year.
Launch IncentivesA provision of 31 million STRD tokens earmarked for governance-led distribution upon launch.
Phased OwnershipA gradual handover of 16.7 million STRD to partners and 24.2 million STRD for team members after a year-long cliff over the subsequent two years.
The essential aspects of Stride’s economic model

The STRD token’s value is two-pronged: it grants governance sway within the Stride ecosystem and earns returns from a 10% fee on liquid staking rewards. This approach not only positions STRD holders at the forefront of decision-making processes but also creates a stream of income from the protocol’s operations, thus augmenting the token’s practicality and market value.

How Does STRD’s Distribution Look Like?

You can find STRD’s distribution model in the table below:

CategoryAllocation
Community AirdropsAllocation of 6.3 million STRD for current and future community initiatives.
Staking DividendsProvision of 5.2 million STRD to reward those staking STRD tokens.
User Participation IncentivesDeployment of 31 million STRD to encourage the use of Stride’s liquid staking services.
Expansion And ProtectionFunding with 3.6 million STRD for community growth and 2.2 million STRD earmarked for fortifying security.
Reserves For Strategy And Team IncentivesSetting aside 10.91 million STRD for the Stride Foundation and 24.2 million STRD to incentivize the team, with an additional 16.7 million STRD reserved for collaborators.
The distribution model of STRD tokens

What are the safety measures Stride offers for its users?

Stride’s commitment to safety is evident in its adherence to rigorous security protocols and its proactive stance in engaging with the industry and the community to safeguard the interests of its users.

We have collected some of the key aspects and their descriptions related to Stride’s security features in the below table:

Security Measure/AspectDescription
Security Audits– Performed by renowned blockchain security firms
– Included Informal Systems, CertiK, and OAK Security
– Aimed to identify and fix potential weaknesses
Design Philisophy– Utilizes a minimalist approach
– Aims to reduce possible risks
– Employs rate-limiting to diminish attack effects
Economic Security– Supported by the economic stability of the Cosmos Hub
– Market value of economic security is approximately $2.5 billion
Community Involvement– Active bug bounty program to uncover and resolve security issues
– Encourages community contributions to platform security
The safety measures and aspects Stride offers for its users and their respective descriptions

Final Thoughts

Stride innovates within the Cosmos ecosystem through its unique blend of staking security and DeFi adaptability. The platform’s liquid staking model increases both the liquidity and practicality of staked assets, contributing to a more inclusive DeFi ecosystem.

Frequently Asked Questions (FAQ):

How to stake tokens on Stride?

You can stake tokens on Stride from any Cosmos blockchain via your wallet. There’s no minimum amount you can stake, and you can see your rewards accumulate in real-time.

After staking your tokens, you will receive stTokens, which can be freely traded or redeemed. You can compound yield via your staked tokens, with opportunities for receiving additional yields through LPing, lending, and other DeFi activities.

Seasoned crypto, DeFi, NFT and overall web3 content writer with 9+ years of experience. Published in Forbes, Entrepreneur, VentureBeat, IBTimes, CoinTelegraph and Hackernoon.

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