The dYdX Foundation has revealed it will launch liquid staking on the dYdX chain today with Stride, the most popular liquid staking provider in the Cosmos Ecosystem.
Over the next few days and weeks, liquid staking on the dYdX chain will also be available through other liquid staking solutions, including Persistence and Quicksilver.
Liquid staking has long been a popular service in the cryptocurrency industry. Generally speaking, liquid staking involves locking up tokens in exchange for a token receipt that can then be used or traded in DeFi applications.
Read More: Liquid staking derivatives surpass lending TVL
According to information available on DeFiLlama, liquid staking derivatives currently have a TVL of over $31.1 billion, making it one of the most popular DeFi services to date.
With the launch of liquid staking on dYdX, token holders will be able to purchase staked denominations of dYdX v4’s native token (DYDX).
Stakers will receive trading and transaction fees in the form of USDC, meaning that they will participate in securing the dYdX v4 chain whilst simultaneously earning additional yield.
“stDYDX’s non-inflationary yield makes it an incredibly stable source of collateral, and the asset will thus have numerous DeFi use cases within Cosmos,” Stride co-founder Riley Edmunds told Blockworks.
Read more: DYdX steps closer to v4 by open-sourcing code
He adds that “this will lead DYDX holders that are otherwise sitting on the sidelines (or using their DYDX in Ethereum DeFi) to move their liquidity into the Cosmos ecosystem.”
The Stride team notes that it will airdrop up to 100,000 STRD tokens to holders who liquid stake their DYDX with Stride for stDYDX within the first 120 days of launch, making it one of the largest STRD airdrops to date.
“DYdX is the largest decentralized exchange by volume in the entire space. It has a huge audience, many of whom are unfamiliar with Cosmos. This integration helps spread the word and increase interest for the Cosmos ecosystem more broadly,” Edmunds said.
Sourced from cryptonews.net.
