Stride blockchain is a product from Stride Labs, which was founded in March 2022. The Stride blockchain provides liquidity for staked tokens. It is part of the Cosmos interchain ecosystem. Using Stride’s liquid staking, you can earn staking rewards from Cosmos proof-of-stake tokens without having to stake them in the traditional way. Since your tokens remain liquid, Users can deploy them in DeFi. Users no longer have to choose between staking yield and DeFi yield.^[3]

History

Stride was launched via Stride Labs in September 2022.^[1] It came about after the founders realized that the then state of DeFi in the Cosmos ecosystem was underutilized and inefficient. Users had to choose between staking their tokens for passive yield or participating in DeFi, exposing themselves to greater risk for greater yields. Other proof-of-stake ecosystems, such as Ethereum and Solana, had staking tokens to solve this problem, but Cosmos did not.^[2]

Stride was launched to deliver an efficient and safe liquid staking experience to users in Cosmos, allowing users to stake as well as participate in DeFi.

Features

Cosmos

Cosmos is a decentralized network of independent parallel blockchains that can scale and interoperate with one another. Cosmos is built on a Proof-of-Stake consensus mechanism. It uses a Proof-of-Stake consensus mechanism, in which validators rather than miners validate transactions and verify the accuracy of new blocks.^[4]

Blockchains built in the Cosmos ecosystem are called “zones”. Stride is a Cosmos zone. It is connected to the Cosmos Hub and many other Cosmos zones. Stride uses a new version of IBC ("IBCv3") to communicate, transact, and interoperate with other chains in the ecosystem. Stride is the first zone to use Interchain Accounts and Interchain Queries, two core IBC technologies.

Stride Token

ST is Stride blockchain's native cryptocurrency. The ST token's tokenomics were planned with three outcomes in mind - to effectively distribute Stride governance power across the communities Stride serves, to facilitate social coordination to promote Stride liquid staking, and to build and maintain value for the ST token, all of which contribute to Stride's mission of serving the Cosmos community with the best liquid staking results possible.

Token Allocation

Token emissions will be emitted either during block-by-block emissions, incentive distribution, or token vesting to core contributers and partners.^[7]

Block-By-Block Emissions

In the first year, 9,450,000 ST will be emitted via block-by-block emissions. These emissions will be allocated to four categories: staking rewards, strategic reserve, initial security budget, and staking rewards. Every year block-by-block emissions will be reduced by 50%, until they asymptotically reach zero. A total of 18,900,000 ST, or 18.9% total supply, will be emitted via block-by-block emissions.^[7]

Incentives Distribution

The Stride incentive pool becomes accessible immediately upon launch, rather than being distributed incrementally with each block. The Stride DAO, overseen by ST token holders, will determine the allocation of this incentive pool. However, to ensure more predictability in ST token emissions, the DAO is bound by an emissions quota for the first year. In this initial period, the DAO is required to issue 20,000,000 ST tokens, leaving 9,000,000 ST tokens allocated for distribution in subsequent years.
In total, 31,000,000 ST tokens, which constitute 31% of the total supply, will be distributed as incentives.^[7]

Vesting

ST tokens allocated to Stride's core contributors and partners undergo a vesting process spanning two years, with an initial one-year cliff. During this period, neither the core contributors nor the partners receive any ST tokens. However, one year following the launch, they begin receiving ST tokens in a linear manner on a monthly basis, continuing for an additional two years. These vesting tokens serve the purpose of staking to enhance network security but are not eligible for staking rewards. This approach ensures robust network security without compromising staking rewards.
A total of 16,700,000 ST tokens vest to Stride's partners, while 24,200,000 ST tokens vest to Stride's core contributors.^[7]

Terminal Supply

ST has a maximum supply of 100,000,000 ST. The token's terminal supply will be allocated as such:

• Initial Security Budget: 2.2%
• Partners: 16.7%
• Community Reserve: 2.0%
• Strategic Reseve: 8.9%
• Community Airdrop: 6.3%
• Staking Rewards: 5.2%
• Community Incentives: 31%
• Dev. Team: 24.2%
• Community Growth: 3.5%^[7]

Staking

Stride can be used to liquid stake one's tokens from any Cosmos chain, earning both staking and DeFi yields from across the Cosmos IBC ecosystem. Users can receive staked tokens immediately when the liquid stake, and rewards will be accumulated in real time to staked token holders. These staked tokens can be freely traded, and can be redeemed with Stride at any time to receive back native tokens plus staking rewards. Currently, Stride supports liquid staking for: Cosmos Hub (stATOM), Osmosis (stOSMO), Injective (stINJ), Stargaze (stSTARS), Evmos (stEVMOS), Terra 2 (stLUNA), Umee (stUMEE), Juno (stJUNO), Comdex (stCMDX), Sommelier (stSOMM).^[5]

Partnerships

Hyperlane

In February 2024, it was announced that Stride would be partnering with Hyperlane to build the cross-chain infrastructure for bridging TIA and stTIA throughout Celestia’s vast modular ecosystem.^[6]

Hyperlane specializes in developing and implementing technology for seamless cross-chain interoperability without requiring permission, with a particular focus on the adaptable ecosystem. Unlike some platforms, it does not operate its own blockchain. One of the various applications that can be constructed using Hyperlane's technology is a robust bridge for secure transactions. Stride, on the other hand, is described as a neutral, secure, and streamlined blockchain designed specifically for liquid staking. With these distinctive qualities, Stride is suitable for serving as the central routing hub chain within the adaptable ecosystem.^[6]

As a result of this integration, users gain the ability to transfer their TIA and stTIA assets across different modular chains via the Hyperlane bridge, with the routing facilitated through the Stride chain. Given its impartiality, security measures, and simplicity, Stride is considered the optimal platform for hosting a Hyperlane deployment.^[6]