0xResearch
Liquid Staking Will Supercharge Cosmos DeFi | Aidan Salzmann, Riley Edmunds (Stride's Co-Founders)
Wed Jun 07 2023
- Many teams considered building Defiant Cosmos but did not launch due to high hurdle rates.
- Liquid staking is a prominent industry in the Ethereum and Cosmos ecosystems.
- The SEC has alleged Binance and CZ violated US securities law, causing asset prices to fall.
- A new bill is being proposed to determine where crypto assets fall in the current regulatory framework of the United States, which could potentially be a big win for crypto if it passes.
- Despite challenges, crypto is here to stay and it's all about the timeline and whether the US wants to remain a hub.
- Binance's potential fine could lead to less liquidity and the liquidation of assets, causing short-term pain for the market.
- The SEC's claims against certain crypto assets may be poorly researched and based on falsehoods.
- Two house representatives have created a draft bill outlining a framework for transitioning crypto assets from securities to commodities.
- DYDX is a promising play going into the end of the year, with potential to be the go-to leverage trading menu in the cosmos if they build a product better than any centralized exchange offering.
- Quanta on optimism is also worth paying attention to, as it represents infrastructure that is good for on-chain perps or just on-chain activities in general.
- Apple's AR/VR headset called Vision Pro with its own operating system called VisionOS could be a game-changer in productivity enhancement capabilities.
- The Apple wallet has the potential to unlock a major opportunity for crypto if it becomes USDC enabled.
- Liquid staking tokens could be a catalyst for DeFi in the Cosmos ecosystem, which has been slow to develop compared to other ecosystems like Ethereum.
- Interchain Accounts allow Stride to pool together staked and unstaked tokens in one account and send transactions through IBC on behalf of the user.
- Minimalism is important for liquid-staking providers to maintain high-quality partnerships with DeFi providers and prevent potential conflicts of interest.
- The Cosmos ecosystem's 15% staking rewards ratio may impact the peg prices of assets.
- Stride protocol has a six-hour window for tokens to sit before being transferred back to the chain they need to be staked on, simplifying the protocol and allowing for instant redemptions through matching withdrawals with deposits.
- The Cosmos Hub providing liquidity for the ST-Adam pool is a sustainable and reliable model for liquidity, which can be a model for other blockchains in the Cosmos ecosystem.
- Stride uses a council of members to review and rank validator applications based on objective criteria before presenting them to governance for ratification or denial.
- Liquid governance is a big research effort that aims to balance the trade-off between governance token holders and users of the protocol holding liquid staking tokens.
- Stride is exploring various research initiatives in the DeFi space, including creating liquid state tokens for other chains and implementing one-click liquid staking to simplify the user flow.