The dYdX Foundation introduces liquid staking on its blockchain in partnership with Stride, enhancing staking options in the Cosmos Ecosystem.
Stride is recognized as the leading liquid staking provider in the Cosmos Ecosystem, bringing substantial expertise to this initiative.
In addition, the dYdX chain plans to expand its liquid staking options by partnering with other providers like Persistence and Quicksilver, which indicates a growing trend in the cryptocurrency industry, where liquid staking is gaining in popularity.
Liquid staking allows participants to lock up tokens in return for a token receipt. 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, highlighting its significant role in the defi sector.
With this new feature on dYdX, token holders can now acquire staked denominations of dYdX v4’s native token (DYDX). An attractive aspect of staking here is that stakers will receive trading and transaction fees in USDC. This not only contributes to securing the dYdX v4 chain but also provides an opportunity for additional yield.
Stride co-founder Riley Edmunds emphasized the stability and potential of stDYDX as a collateral source in the defi ecosystem within Cosmos. He pointed out that this initiative could encourage DYDX holders, especially those currently inactive or engaged in Ethereum defi, to shift their liquidity to the Cosmos ecosystem.
Moreover, Stride plans to incentivize participation by executing one of its largest STRD token airdrops. They will distribute up to 100,000 STRD tokens to users who liquid stake their DYDX with Stride for stDYDX in the first 120 days of the launch.
Edmunds also highlighted the strategic significance of this integration. He mentioned that dYdX, being the largest decentralized exchange by volume, attracts a vast audience. This collaboration not only introduces these users to the Cosmos ecosystem but also potentially increases overall interest and engagement within this space.
Source : crypto.news by Bralon Hill / Jan 30, 2024