dYdX Foundation collaborates with Stride for the introduction of liquid staking
The dYdX Foundation has joined forces with Stride to introduce liquid staking on its blockchain, expanding staking options in the Cosmos Ecosystem. Stride is widely recognized as the top provider of liquid staking in the Cosmos Ecosystem, bringing valuable expertise to this initiative. In addition, the dYdX chain plans to further enhance its liquid staking offerings by partnering with other providers such as Persistence and Quicksilver, reflecting the growing popularity of liquid staking in the cryptocurrency industry.
Liquid staking enables participants to lock up tokens in exchange for a token receipt, which can then be actively used or traded in decentralized finance (defi) applications. The current Total Value Locked (TVL) in liquid staking derivatives exceeds $31.1 billion, according to DeFiLlama, highlighting its significant role in the defi sector.
With the introduction of this new feature on dYdX, token holders can now acquire staked denominations of dYdX v4’s native token (DYDX). One attractive aspect of staking on dYdX is that stakers will receive trading and transaction fees in USDC. This not only helps secure the dYdX v4 chain, but also provides an opportunity for additional yield.
Riley Edmunds, co-founder of Stride, emphasized the stability and potential of stDYDX as a collateral source in the defi ecosystem within Cosmos. He noted that this initiative could incentivize DYDX holders, especially those who are currently inactive or involved in Ethereum defi, to transfer their liquidity to the Cosmos ecosystem.
In addition, Stride plans to incentivize participation by conducting a large STRD token airdrop. They will distribute up to 100,000 STRD tokens to users who liquid stake their DYDX with Stride for stDYDX within the first 120 days of the launch.
Edmunds also highlighted the strategic importance of this integration, noting that dYdX, as the largest decentralized exchange by volume, attracts a wide audience. This collaboration not only introduces these users to the Cosmos ecosystem, but also potentially increases overall interest and engagement in this space.
