What is Stride?

What is Stride?

Stride is a blockchain platform enabling liquid staking for tokens within the Cosmos ecosystem. It allows users to stake their tokens and receive liquid staked tokens (LSTs) in return. These LSTs can be freely traded, transferred, or used in DeFi activities while continuously earning staking rewards, thus unlocking the value of staked assets without typical constraints.

Supporting multiple tokens such as ATOM, OSMO, TIA, DYM and LUNA, Stride has over 118,000 users and $92.5 million in total value locked (TVL). The platform prioritizes security, with audits from industry leaders like Informal Systems and Certik. Utilizing the Inter-Blockchain Communication (IBC) protocol, Stride ensures integration across the Cosmos network, establishing itself as a key player in the liquid staking market.

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How Does Stride Work?

Stride enhances the liquidity of staked tokens, allowing them to be freely traded, lent, or utilized in DeFi applications while still earning rewards. Here’s a simple breakdown of Stride operates its liquid staking mechanics:

1. Deposit Tokens: Users deposit native tokens from any supported Cosmos chain into Stride.
2. Mint stTokens: Upon depositing, users receive liquid staked tokens (stTokens), representing their staked assets.
3. Continuous Rewards: The native tokens are staked, and rewards are compounded in real-time, increasing the value of stTokens.
4. DeFi Integration: stTokens can be used across DeFi platforms for activities like lending, liquidity provision, and more, generating additional yields.
5. Redemption: Users can redeem their stTokens through Stride to receive the original tokens plus accrued rewards. Redemption can be immediate via DEX or subject to an unbonding period if done through the app.

This process ensures that staked assets remain productive and flexible, maximizing yield opportunities while maintaining the benefits of traditional staking.

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What LSTs Does Stride Support?

Stride supports a range of liquid staked tokens (LSTs) from various Cosmos chains. These include:

• stATOM: Represents staked ATOM from the Cosmos Hub.
• stOSMO: Represents staked OSMO from Osmosis.
• stLUNA: Represents staked LUNA from Terra 2.
• stJUNO: Represents staked JUNO from Juno.
• stEVMOS: Represents staked EVMOS from Evmos.
• stSTARS: Represents staked STARS from Stargaze.
• stINJ: Represents staked INJ from Injective.
• stUMEE: Represents staked UMEE from Umee.
• stDYM: Represents staked DYM from Dymension.
• stSOMM: Represents staked SOMM from Sommelier.
• stDYDX: Represents staked DYDX from dYdX.
• stTIA: Represents staked TIA from Celestia.
• stSAGA: Represents staked SAGA from Saga.

These LSTs enable users to maintain liquidity and flexibility while their assets continue to earn staking rewards within the Cosmos ecosystem.

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Stride STRD Token Utility

The STRD token serves several utility functions within the Stride ecosystem:

• Governance: STRD holders can vote on critical protocol decisions, such as validator selection, community fund allocation, and protocol upgrades, ensuring decentralized and community-driven governance.
• Staking Rewards: By staking STRD, users earn a portion of the protocol's fees. These rewards are distributed in various Cosmos tokens, such as stATOM, stDYDX, and stOSMO, along with newly emitted STRD, enhancing the overall yield.
• Network Security: Staking STRD contributes to the security and stability of the Stride network. In return, stakers receive additional annual percentage rates (APR) through inflationary rewards, thereby reinforcing the network's integrity and robustness.

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STRD Tokenomics

Stride's tokenomics are designed to ensure balanced growth and incentives within the ecosystem. Here's an overview of the token distribution and revenue allocation:

• Revenue Distribution: The Stride protocol charges a 10% fee on staking rewards from liquid staked tokens. This revenue is allocated between STRD Stakers (80.75%), ATOM Stakers (15%), and the Community Pool (4.25%).
• Token Allocation: The total STRD token supply is distributed across various categories: Security Budget (2.2%), Community Reserve (2%), Strategic Reserve (8.9%), Incentives (31%), Community Growth (3.5%), Development Team (24.2%), Staking Rewards (5.2%), Airdrops (6.3%), and Partners (16.7%).
• Emission Schedule: The STRD emission schedule is structured to ensure a sustainable distribution over time, balancing network security needs, development incentives, and community growth. This careful planning supports the long-term viability and stability of the Stride ecosystem.

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Is Stride Safe?

Yes, Stride prioritizes safety and security through rigorous measures. The platform has undergone multiple security audits by leading firms such as Informal Systems, CertiK, and OAK Security, ensuring vulnerabilities are addressed. Stride's minimalist design reduces its attack surface, and rate-limiting features mitigate potential threats.

Additionally, Stride's economic security is reinforced by the Cosmos Hub, providing $3 billion in security. The platform also runs a comprehensive bug bounty program, encouraging the community to report security issues, demonstrating Stride's commitment to maintaining a secure and reliable liquid staking platform.

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Bottom Line

Stride revolutionizes liquid staking in the Cosmos ecosystem by enabling users to stake tokens while retaining liquidity and earning continuous rewards. With strong security measures and support for multiple tokens, Stride ensures a secure and efficient staking experience. The STRD governance token enhances decentralized decision-making and network security.

By integrating with DeFi and leveraging Cosmos Hub's economic security, Stride maximizes yield opportunities and offers a flexible staking solution.