August 16, 2023
Stride Briefing: 11th Edition

The Stride Briefing is the easiest way to keep abreast of all things Stride! On a bi-weekly basis, the Briefing will concisely inform you of: recent Stride events, future Stride events, and provide current stats on Stride’s various Osmosis liquidity pools. The Stride Briefing will also serve to get newcomers up to speed.  

Briefing #11, let’s go!

What is Stride?‍

Stride is a Cosmos-wide liquid staking provider. Using Stride’s liquid staking, you can earn staking rewards from Cosmos proof-of-stake tokens without having to stake them. Since your tokens remain liquid, you can deploy them in DeFi. This means you no longer have to choose between staking yield and DeFi yield. Thanks to Stride, you can have both at once.


Have questions? Check out Stride’s thorough FAQ, or join the Stride Discord.

Notable Recent Happenings

ATOM Accelerator DAO provides stATOM/ATOM Liquidity on Neutron

The ATOM Accelerator DAO recently deployed 450k ATOM (~3.6m USD) to the stATOM/ATOM liquidity pool on Neutron’s Astroport. This is the first DeFi deployment of ATOM by the Cosmos Hub Community Pool. The deep liquidity this brings paves the way for more DeFi on Neutron, in which stATOM is poised to play a central role (see more below). You can find out how to trade ATOM on Neutron here.

Host-Chain Validator Selection Underway – Advisory Councils Selected

Stride’s Host-Chain Validator Selection Process is underway. As a reminder, in the coming weeks, Stride governance will select a set of validators on the Cosmos Hub and Osmosis respectively. These validators will be delegated the ATOM and OSMO liquid staked through Stride. Part of the process will be an advisory council for each host-chain, who will help evaluate validator applications. The advisory councils have been selected and are currently being voted on by governance on the Cosmos Hub and Osmosis. You can vote on the proposals for the Cosmos Hub Council here and on the Osmosis Council here. You can also learn more about the validator selection process by reading the relevant post here.

Incentivized stATOM/DOT Live On Polkadot Ecosystem

Composable Finance recently connected Centauri, its Cosmos SDK chain, with Picasso, its Polkadot parachain, providing an IBC bridge to the Polkadot ecosystem. Using this bridge, users can trade stATOM for DOT using the stATOM/DOT pool on Pablo, the DEX on Picasso. The stATOM/DOT pool is incentivized with both STRD as well as PICA. You can learn how to bridge stATOM over to Picasso here.

Upcoming Things

Cosmos Hub Liquid Staking Module Coming September

The upcoming Cosmos Hub v12 upgrade will include the Liquid Staking Module (LSM), which proposes a safe path to increase capital efficiency on the Cosmos Hub. LSM has three main features that contribute to the security and capital efficiency of the Hub. The first feature creates a cap that prevents liquid staking providers from holding more than 25% of staked ATOM. This measure increases the security of the chain, as it prevents Liquid Staking providers from controlling more than the 33% threshold required to attack the chain. The second feature requires validators who wish to receive liquid staking delegations to self-bond ATOM, in order to disincentivize malicious action. Thirdly, and most importantly, LSM allows stakers to convert staked ATOM to liquid-staked ATOM instantly, without having to unbond or forfeit staking rewards. Once implemented, users who currently have staked ATOM will be able to convert this to stATOM directly on the Stride app. To learn more about LSM, you can read the forum post here. The upgrade is expected to take place in September.

Incentivized stATOM Coming To Sei

This week saw the much-awaited launch of DeFi Layer 1 Sei. Astroport is among the first DEXs to launch on Sei, and will be incentivizing a stATOM/USDC pool with ASTRO. The Stride Foundation has agreed to match ASTRO incentives with STRD. This partnership paves the way for a host of applications on Sei to integrate stATOM. You can find the proposal here.

Agoric’s IST May Accept stATOM as collateral

A recent proposal on the Agoric forum proposes stATOM being accepted as collateral for Agoric’s stablecoin IST. IST is one of the leading decentralized stablecoins in the Cosmos, and Inter Protocol, which mints IST, currently accepts ATOM as collateral. However, by accepting stATOM as collateral, minting IST would become far more capital efficient, which could increase the amount of IST in circulation, as more users would be willing to mint IST.

stATOM to be collateral on Mars’ Neutron Outpost

A recent proposal on the Mars forum calls for accepting stATOM as a collateral asset on the Neutron outpost of Mars. stATOM’s success in increasing capital efficiency on Mars’ outpost on Osmosis has served as motivation for this proposal. The acceptance of stATOM on Mars’ Neutron outpost would increase the presence and utility of stATOM on Neutron, and position it at the center of Neutron DeFi.

Stride Liquidity Pool Incentives Guidance

Stride is currently in the middle of a 30 Day Liquidity Incentives Program which began on August 5th. You can read more about the program here, but a summary of the current liquidity incentives is below.

That's all for now! Follow Stride on Twitter for real-time updates.