The dYdX Foundation has introduced liquid staking capabilities to the dYdX Chain. The blockchain is collaborating with a leading liquid staking provider in the Cosmos Ecosystem, Stride.
Quick Take:
- dYdX Foundation collaborates with Stride and introduces liquid staking on its blockchain.
- The upgrade introduces interchain accounts and supports liquid staking protocols in the Cosmos-based network.
- Users can stake DYDX tokens and convert them into liquid assets for trading.
- Expansion plans include integrating other liquid staking solutions.
This step will expand the utility and accessibility of the dYdX chain. Moreover, it will provide users with new opportunities to participate in decentralized finance (DeFi).
The blockchain has undergone crucial upgrades with the release of dYdX Chain v3.0. Most importantly, the introduction of interchain accounts allows the chain to support liquid staking protocols within the Cosmos-based network.
This will lead to a new era of staking flexibility for users. Stakers can now delegate their DYDX tokens and secure the network while converting staked assets into liquid tokens for trading or utilization in DeFi applications.
CEO of dYdX Foundation, Charles d’Haussy said,
“The Liquid Staking competition is driving innovation in the DYDX staking ecosystem, which is ultimately good for the entire community”
dYdX’s Launch with Stride and Future Plans
Stride’s involvement is expected to enhance the efficiency of staking on the dYdX chain. Thus, it will provide users with improved staking options. Looking ahead, the dYdX Foundation has plans to integrate other leading liquid staking solutions, such as Persistence and Quicksilver.
This strategic expansion aims to diversify staking choices and enhance the overall user experience on the platform. Plus, this could mark the beginning of a new era for the dYdX platform.
The launch of liquid staking on the platform introduces an opportunity for token holders. Users can now purchase staked denominations of the native token, DYDX. This initiative allows participants to earn additional yield in the form of USDC through trading and transaction fees.
Stride co-founder Riley Edmunds emphasizes the stability and utility of stDYDX. He anticipates its adoption across various DeFi platforms within the Cosmos ecosystem. Moreover, the integration of liquid staking on the chain is poised to have an impact on the DeFi sector.
Liquid staking derivatives currently boast a total value locked (TVL) of over $31.1 billion, highlighting the high demand for such services in the DeFi sector. The dYdX chain’s adoption of liquid staking is expected to contribute significantly to this trend. It will provide users with increased flexibility and opportunities in their staking activities.
The collaboration with Stride and upcoming partnerships with other liquid staking solutions show the platform’s commitment to offering diversified staking options. Moreover, the dYdX ecosystem is set to become more robust and decentralized with these developments.
