Summary

-150,000 STRD to be airdropped to holders of stDYDX

-Daily snapshots starting today and lasting 120 days

-At the end of the 120 day period, users will receive a share of the STRD proportional to how much stDYDX they held and for how many days

-Claimed STRD will vest immediately

-Users can hold stDYDX in any Cosmos address and use it in any Cosmos DeFi app

‍

A new take on Stride airdrops

Historically, when onboarding a new token for liquid staking Stride has always airdropped STRD to stakers of that token. Through this style of airdrop, stakers of ATOM, OSMO, STARS, SOMM, etc have collectively received roughly 4.5M STRD (4.5% total max supply).

The purpose of these airdrops has been two-fold: both to distribute STRD in order to further decentralize the protocol, and to expose new users to the protocol and invite participation in onchain governance.

This has worked in the past, so it makes sense to keep doing it!

But dYdX chain is unlike any chain Stride has ever onboarded, as it is very young. What’s more, much of the DYDX supply has not yet converted from Ethereum to Cosmos. To adapt to this different set of circumstances, a slightly different Stride airdrop will be used.

‍

Stride protocol

For those unaware, it should be made clear that Stride protocol already has a token. Stride launched simultaneously with its STRD governance token in September 2022.

Since then, Stride has become the dominant liquid staking provider for Cosmos blockchains, with 78% market share for liquid staked ATOM and 95% market share for liquid staked OSMO, DYDX, STARS, EVMOS, and JUNO. Current Stide TVL is $87M.

Stride protocol redirects 8.5% of staking rewards from liquid staked tokens to STRD stakers.

‍

Airdrop eligibility

All you have to do is hold stDYDX. Simple, right?

To get stDYDX, you can either liquid stake DYDX using the Stride protocol app or you can acquire stDYDX on a DEX. Either way works.

While holding stDYDX, you can simply hold it in your address or use it in any Cosmos DeFi application. Also, you can use IBC to transfer it to any Cosmos blockchain. The only thing is, it has to remain in the same Cosmos address with the same private key. (Different Cosmos chains have different versions of the same address.)

So long as an address controls stDYDX, that address will be eligible.

Snapshots will be taken daily for 120 days, starting today. At the end of the period, users will receive a share of the total STRD airdrop proportional to 1) how much stDYDX they held and 2) how many days they held it for. Users should try to maximize both these variables - size and duration. 

Users may begin holding stDYDX at any point in the 120 days. Users may add or subtract stDYDX at any point. Finally, users may cease holding stDYDX at any point. Snapshots are taken daily, so as long as a user is counted in at least one snapshot - he will be eligible for at least a small amount of STRD. 

‍

Cheating

Don’t cheat.

The spirit of this airdrop is that, within the 120 day period, users should earn credit every day for each stDYDX token they fairly and legitimately hold. Although it is unclear how a user may do this, users should not try to make it appear that they hold more stDYDX than they actually do.

The Stride Association reserves the right void certain addresses from receiving STRD if there is sufficient onchain evidence of cheating. The Stride Association will use its sole discretion to evaluate potential cheating and enact reasonable consequences.

‍

Final thoughts

In the past, airdrops have helped bootstrap liquidity and mind share for new LSTs - and it is hoped this airdrop will be just as effective.

dYdX is one of the most unique and powerful projects in crypto, as it often has the highest daily volume of all perpetual futures DEXes. But most importantly, it is also clearly the most decentralized perpetual futures DEX in existence. dYdX remains highly innovative and relevant.

Hopefully, stDYDX can help make dYdX even more successful. Through stDYDX, it is likely more users will want to hold DYDX and use it in DeFi. And a larger holder base combined with greater onchain usage always makes a project more robust.