Liquid Staking With Stride - 1 month update and Validator Set Expansion

dYdX Chain
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It has now been 1 month since Stride launched liquid staking on the dYdX Chain, and adoption of stDYDX has begun to take off in a big way! From growth of usecases across the interchain ecosystem to Stride’s ongoing 150,000 STRD airdrop to stDYDX holders, there’s a lot to be excited about.

As a reminder, you can liquid stake your DYDX tokens with Stride by visiting Stride | Multichain Liquid Staking .

Here’s our latest update, including latest TVL figures, integration updates, airdrop updates, and our latest additions to the stDYDX host-chain validator set.

TVL Update

stDYDX TVL has ballooned to $6.25 million in the last 30 days. At 1.74M DYDX tokens liquid staked, Stride now accounts for 1.6% of all staked DYDX tokens.

As TVL a continues to grow in the coming weeks, we expect to see Stride play an increasingly significant role in helping bolster the economic security of the dYdX chain and increasing fairness of stake weight distribution across the validator set.

DeFi Integrations

Since our last update, TVL in DeFi Integrations has grown significantly. We’ve also brought stDYDX to new locations in the Cosmos ecosystem. Here’s a brief update:

  • The LP on Osmosis has grown to over $1.61 million in liquidity, facilitating a strong peg for stDYDX.

  • The liquidity cap on the Quasar passive liquidity vault has been raised to $400,000 after it was quickly hit a few weeks ago.

  • stDYDX supplied collateral on Nitron has increased to $163,000. We’re keeping an eye on the supply cap, as it is currently approaching 66% utilization and may need to be raised soon.

stDYDX has also been listed on Mars Protocol, where users can participate in multiple strategies to increase their DYDX exposure and staking APR. For a comprehensive overview of how stDYDX can be used on Mars, check out this post.

Airdrop Update

As noted above, the 150,000 STRD airdrop to stDYDX holders is still active! In a few days, we’ll be releasing the first snapshots of the airdrop so that stDYDX holders can check their STRD allocations. Be on the lookout for an announcement from the Stride Twitter account before the end of the week with more information.

For more details on the airdrop and how to participate, check out the launch blog post.

Validator Set Expansion

As set out in a previous post , Stride is effectuating a phased rollout of delegations to validators on the dYdX Chain. Stride initially launched with 10 validators in order to minimize the likelihood of a selected validator falling out of the rapidly changing dYdX active set. Additionally, Stride committed to periodically add additional validators to the set 3-4 at a time until Stride’s traditional 32 validator active set was reached.

As with the initial 10 validators, subsequent validators are chosen according to factors that are most important to the health of the protocol in this bootstrapping phase. These factors were inspired heavily by the dYdX Foundation’s published guidelines on best practices for dYdX validators and stakers . A few non-exclusive examples include:

  • The validators’ respective contributions to dYdX in testnet and mainnet so far, including node and infrastructure operation, testing, maintenance, bug reporting, engineering contributions, dashboard and tooling maintenance, and more.
  • Validator operations and security, to the extent that this is easily discoverable using publicly available means.
  • Position in the active set. Because 33% of vote power is currently concentrated in the top 2 validators, no stake will be delegated to the top 33% of vote power until such time as stake weight distribution across the set improves
  • Node performance and latency. Note that for now this does not include uptime / missed blocks, as the shorter blocktimes for the dYdX chain tend to result in more missed blocks on average than other chains.
  • Governance participation.

This model helps ensure minimum downtime for a validator to which Stride delegates and ensures maximum alignment with the dYdX’s protocol’s needs. Stride wishes to be a strong decentralizing force for the dYdX chain, and the validator selection process reflects those goals.

This round, Stride has selected 3 validators to add to the host-chain delegation set, bringing the total number of validators in the set to 17. The 3 validators that have been added to the set are:

With the addition of these 3 validators, the full stDYDX host-chain validator set is:

  • Imperator
  • Polkachu
  • Kingnodes
  • PRO Delegators
  • Crosnest
  • Strangelove
  • Cryptocrew x Defi Dojo
  • Enigma
  • ECO Stake
  • Smart Stake
  • Lavender.Five nodes
  • Kiln
  • Meria
  • Cosmostation
  • Silk Nodes
  • Informal Systems
  • Provalidator

Validators in this set should notice changes to their delegations in the next several days to accommodate these additions. After allowing for another ~2 weeks, 3-4 additional validators will be added to the set. Be on the lookout for another forum post around that time announcing the next cohort of selected validators.

Liquid Stake your DYDX With Stride

If you’re new to the concept of liquid staking or are unfamiliar with Stride, DYDX token holders can liquid stake their Stride today by visiting https://app.stride.zone/?chain=DYDX . By liquid staking, you can continue to earn DYDX’s 18.6% staking APR without being subject to the 30 day lockup period. You’ll also be eligible for Stride’s 150,000 STRD airdrop for stDYDX holders. More details on how to qualify here: https://www.stride.zone/blog/airdrop-to-stdydx-holders

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This is an impressive list of updates. At Informal Systems, we’re happy & proud to be added to the host-chain delegation set and to continue to support both Stride & Dydx

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