Stride Briefing: Fifth 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 new-comers up to speed.

Briefing #5, 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.

Tokens supported: ATOM, OSMO, JUNO, STARS

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

Notable Recent Happenings

‍Cosmos Hub Validator Set Selection Process

The Stride community passed the recent signaling proposal to redelegate Stride’s Cosmos Hub validator set. Validator applications were collected, and the advisory council recommended a new set of validators. A text proposal was placed on Commonwealth, and the following on-chain proposal passed with 95% support. 

Discussion of Community-Proposed Features for 2023

The community submitted a proposal on Stride’s commonwealth, listing features the community has asked Stride core contributors to build in the next 6 months. 

Stride posted a detailed Twitter thread and blog post unpacking the proposals.

Updates to the Stride Web Application

A few small updates were made to the Stride web application. 

  • First, on app.stride.zone, you can now track the protocol’s redemption rate and the market rate for all Stride’s staking derivatives. 
  • Second, after liquid staking you can now transfer your newly-minted st-Tokens to the Osmosis blockchain directly in the app.stride.zone interface, simplifying the steps required to provide liquidity!

Shade Protocol’s ShadeSwap DEX will use stATOM and stOSMO Base Pairs

ShadeSwap will be the first liquid staking DEX in the Cosmos! Instead of using ATOM and OSMO, DEX pairs will use Stride's $stATOM and $stOSMO instead. Instead of an OSMO/ATOM pair, ShadeSwap will have an stOSMO/stATOM pair. This allows LPers to keep their staking rewards as they earn LP rewards.

Up-coming Things

Umee integration

Umee’s governance proposal to list stATOM passed with 89% support. Umee is now wrapping up testing on their oracle and will likely be enabling lending / borrowing support for stATOM sometime in January. An integration for stOSMO on Umee will likely follow soon after. 

Stride on-boarding Injective

There have been some delays with the on-boarding of Injective. But it will happen! Once stINJ is launched, there will be a liquidity pool on Helix (Injective’s premier DEX), as well as a customary airdrop to INJ stakers.

Stride on-boarding Evmos

The Evmos snapshot was taken and Evmos is pushing an update to their blockchain to enable ICA. The snapshot occurred on December 7th at 21:32 UTC (block 8225607).

Orachain Collateral Integration

Orchai will list stATOM and stOSMO as collateral options on its AI-powered lending platform, on the Oraichain blockchain. Read more on the Stride Twitter.

Stride Liquidity Pools Statistics

The following data is current as of January 7th, 20:00 UTC. Table shows the yield Stride's liquid staked tokens can earn when LPed on Osmosis compared with the normal staking reward. Looks like it's always more profitable to liquid stake and LP!

stTOKEN/TOKEN pools give constant 100% exposure to a single token, meaning they have effectively no impermanent loss. In terms of economic risk, providing liquidity for these pools is the same as staking - except LPing earns a much higher yield.

Pool Links

ATOM/stATOM: https://app.osmosis.zone/pool/803

stOSMO/OSMO: https://app.osmosis.zone/pool/833

STRD/OSMO: https://app.osmosis.zone/pool/806

JUNO/stJUNO: https://frontier.osmosis.zone/pool/817

STARS/stSTARS: https://frontier.osmosis.zone/pool/810

Stride Liquidity Pool Incentives Guidance

In order to be useful to DeFi applications, Stride’s stTokens need deep liquidity. Liquidity is incentivized with STRD and OSMO. Stride uses short-duration incentive gauges. Doing so provides more flexibility as opposed to long-term gauges. To be clear, Stride mainly wants the flexibility to easily add more incentives when necessary.

In order to give liquidity providers some assurance that Stride is committed to continually renewing its incentive gauges, Stride provides the following guidance:

1. If Stride wants to decrease the STRD per day incentive rate for any of its liquidity pools, Stride will always provide at least three weeks’ notice.

2. According to current expectations, it is highly unlikely that Stride will decrease the STRD per day rates for the stATOM pool or the stOSMO pool. Current incentives for those two pools are expected to be continually renewed for at least a year. Strategically, these are the two most important pools.

Here is specific guidance on Stride’s incentive calendar:

  • Until February 15th: Stride is 100% committed to maintaining current levels of incentives
  • Until March 15th: Stride is expecting to maintain currency levels of these incentives, but might change the amount if conditions change
  • From March 15th onwards: current levels of incentives are approximate guidance, but please keep in mind values can change

Stride’s current liquidity incentive program:

For an illustration of Stride's full liquidity pool guidance, see this spreadsheet.

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