Stake, Trade, Repeat: Node.Monster’s Key Role in Stride’s Liquid Staking Journey
As one of the top 10 validators on the Stride network, Node,Monster is deeply invested in the success and security of this pioneering liquid staking protocol within the Cosmos ecosystem. Stride represents a transformative shift in how staking operates by enabling users to maintain liquidity while still earning staking rewards.
The Essence of Stride
Stride was created to solve a critical problem in the staking ecosystem: the inherent trade-off between earning rewards and maintaining liquidity. Traditionally, staking requires users to lock up their assets, rendering them unusable for any other purpose until the lock-up period ends. Stride offers a novel solution by allowing users to stake their assets while receiving stTokens (like stATOM). These stTokens represent the staked assets and can be freely traded, used in DeFi protocols, or held as liquid assets — all while continuing to earn staking rewards.
The seamless integration of Stride with the Cosmos ecosystem via the Inter-Blockchain Communication (IBC) protocol ensures that users can stake tokens from various Cosmos chains and receive corresponding stTokens. This interoperability enhances liquidity across the entire ecosystem, making it easier for users to participate in multiple DeFi protocols without sacrificing staking rewards.
Liquidity’s Crucial Role in DeFi and TradFi
Liquidity is the lifeblood of any financial system. Assets need to be fluid and accessible to support various financial activities, from trading to lending and beyond. When assets are locked up in staking contracts, they become illiquid, reducing their utility in DeFi markets. This lack of liquidity can hinder the growth and efficiency of DeFi protocols, as users are forced to choose between earning staking rewards and participating in the broader DeFi economy.
Stride’s model offers significant benefits for IBC-compatible protocols. These protocols can stake revenue tokens while keeping them liquid, avoiding the traditional lock-up period. This approach allows them to accrue long-term value and demonstrate their commitment to the project’s success. For instance, the DYDX community recently secured its network by staking 20 million DYDX tokens (valued at around $67 million) through Stride’s platform. For institutions,using stTokens opens new avenues for capital management and growth by eliminating the major financial risk of illiquidity.
Focusing on the IBC protocol, Stride can easily create a stToken for every IBC-compatible chain. This multi-chain liquidity model not only optimizes asset utilization but also opens up diverse opportunities for stTokens within the Cosmos DeFi ecosystem:
- DEXs: stTokens can be used on DEXs like Osmosis or Astroport to provide liquidity or swap to other tokens. By contributing stTokens to trading pairs, users enhance market liquidity and earn trading fees, benefiting from both staking rewards and transaction fees.
- Lending Protocols: stTokens can serve as collateral in lending protocols like Mars, enabling users to access additional liquidity without needing to unstake their assets.
- DeFi Aggregators: stTokens can be integrated into DeFi aggregators, which optimize yield strategies by pooling resources from various protocols.
The Importance of User Participation in Staking and Governance
User participation is the cornerstone of any decentralized network, and Stride exemplifies this through staking and governance. When users stake their assets through Stride — such as ATOM or other tokens from IBC-compatible chains — they directly contribute to the security and decentralization of those underlying blockchain networks.
Users can actively participate in the Stride Network by holding and staking STRD tokens. The tokenomics of STRD are thoughtfully designed to ensure the long-term sustainability and growth of the Stride network. With a capped total supply of 100 million STRD, the distribution of these tokens is strategically balanced to meet the needs of the community, validators, and the core team. A significant portion of STRD tokens is allocated to community incentives, rewarding users who actively secure the network and participate in governance.
Governance is a cornerstone of the Stride network, with the STRD token playing a central role. As a governance token, STRD allows holders to vote on crucial decisions, including protocol upgrades, parameter changes, and DAO treasury management.
At Node.Monster, we recognize the dual responsibility of securing the network and engaging in governance. As a top validator, we are dedicated to both maintaining network security and actively participating in its governance. By fostering an informed and active community, we contribute to meaningful changes that ensure Stride’s growth and alignment with its participants’ collective vision.
How to Stake with Node.Monster on the Stride Network
Here’s a step-by-step guide on how to stake your assets with Node.Monster using the Keplr wallet:
Step 1: Install and Set Up Keplr Wallet
If you haven’t already, start by installing the Keplr browser extension, available for Chrome and Firefox. Once installed, create a new wallet or import an existing one using your seed phrase. Make sure to securely back up your seed phrase, as it is essential for accessing your funds.
Step 2: Fund Your Wallet
Ensure that your Keplr wallet is funded with the assets you wish to stake. You can transfer tokens to your Keplr wallet from an exchange or another wallet. If you’re staking STRD, make sure you have STRD tokens available in your Keplr wallet.
Step 3: Navigate to the Stride Staking Page
With your Keplr wallet set up and funded, navigate to the Stride staking page on Keplr by visiting this link. This page displays a list of validators on the Stride network, along with relevant details such as voting power and commission rates.
Step 4: Select Node.Monster as Your Validator and s
Scroll through the list of validators to find Node.Monster. Once you locate it, click on the “Manage” button next to Node.Monster’s name. This will open a window where you can specify the amount of STRD tokens you want to stake. Once you’re ready, confirm the transaction. Your tokens will be staked, and you’ll begin earning rewards.
Looking Ahead
The future of liquid staking within the Cosmos ecosystem is bright, and Stride is well-positioned to lead the way. As the network continues to evolve, Node.Monster remains dedicated to ensuring that Stride is secure, decentralized, and efficient. We believe that Stride’s innovative approach to staking will redefine the staking landscape in Cosmos and beyond, offering users new opportunities to participate in the DeFi ecosystem without sacrificing the benefits of staking.