The dYdX Foundation Introduces Liquid Staking on its Blockchain in Partnership with Stride
The dYdX Foundation has partnered with Stride to introduce liquid staking on its blockchain, expanding staking options in the Cosmos Ecosystem. Stride, a leading liquid staking provider in the Cosmos Ecosystem, brings valuable expertise to this collaboration.
1/6 🎉 The dYdX Chain Protocol v3.0 Upgrade has been successfully implemented at block height 7147832. Thanks to everyone who voted and contributed! What does the upgrade change?
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Expanding Liquid Staking Options
In addition to partnering with Stride, the dYdX chain plans to collaborate with other providers like Persistence and Quicksilver to further expand its liquid staking options. This indicates a growing trend in the cryptocurrency industry, where liquid staking is gaining popularity.
The Significance of Liquid Staking
Liquid staking enables participants to lock up tokens and receive a token receipt in return. This receipt can then be actively used or traded in decentralized finance (defi) applications. The current Total Value Locked (TVL) in liquid staking derivatives is over $31.1 billion, according to DeFiLlama, underscoring its significant role in the defi sector.
Acquiring Staked Denominations of DYDX
dYdX token holders can now acquire staked denominations of dYdX v4’s native token (DYDX) through this new feature. An attractive aspect of staking on dYdX is that stakers receive trading and transaction fees in USDC, contributing to the security of the dYdX v4 chain and providing an opportunity for additional yield.
Incentives and Strategic Significance
Stride plans to incentivize participation by conducting a large STRD token airdrop. Users who liquid stake their DYDX with Stride for stDYDX within the first 120 days of the launch can receive up to 100,000 STRD tokens. This collaboration between dYdX, the largest decentralized exchange by volume, and Stride introduces users to the Cosmos ecosystem and potentially increases overall interest and engagement within the space.
Hot Take: Liquid Staking Expands Staking Options in the Cosmos Ecosystem
The introduction of liquid staking on the dYdX blockchain in partnership with Stride enhances staking options in the Cosmos Ecosystem. Liquid staking allows participants to lock up tokens and actively use or trade token receipts in defi applications. With a growing trend in the industry, the Total Value Locked in liquid staking derivatives has surpassed $31.1 billion. This new feature on dYdX enables token holders to acquire staked denominations of DYDX and receive trading fees in USDC. The collaboration with Stride also incentivizes participation through a large STRD token airdrop, introducing users to Cosmos and increasing interest in this space.
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