Stride (STRD)

Liquid Staking

Stride allows users to stake IBC-compatible tokens (like ATOM) and receive liquid staking tokens (stTokens) in return. These stTokens represent the staked assets plus accrued staking rewards and can be traded, used as collateral for loans, or deployed in DeFi activities such as lending and providing liquidity on decentralized exchanges. This means users earn staking rewards while keeping their tokens liquid and usable.

Governance

The STRD token is the governance token of Stride. Holders can stake STRD to earn rewards and participate in on-chain governance by voting on important decisions like validator selection and protocol upgrades. This gives the community influence over the future of the Stride ecosystem.

Ecosystem Integration

Stride operates within the Cosmos ecosystem and uses Interchain Accounts (ICA) and Inter-Blockchain Communication (IBC) to stake tokens across multiple chains securely. It supports liquid staking for various Cosmos-based tokens, enabling users to access DeFi opportunities across the Cosmos ecosystem while earning staking rewards.

Payment and Store of Value

Stride can also function as a means of payment and a store of value, broadening its practical uses in everyday transactions and long-term asset management.

Security and Simplicity

Stride focuses on minimalism and security by providing a single function—liquid staking—to reduce vulnerabilities and ensure a safe user experience. It leverages the economic security of Cosmos Hub and shares a portion of staking rewards with it, fostering ecosystem collaboration.

Pros

• Stride allows staking of IBC-compatible tokens while receiving liquid staking derivatives (stTokens) that can be traded or used in Cosmos DeFi, maintaining liquidity and earning staking rewards simultaneously.
• The Stride blockchain is designed with minimalism and strong security, reducing vulnerabilities by focusing on a single function: liquid staking.
• It benefits from interchain security provided by Cosmos Hub, offering about $3 billion in economic security, ranking it among the top 20 PoS chains.
• Stride LSTs are non-rebasing, meaning their value appreciates over time as staking rewards accumulate.
• The protocol has been audited multiple times by security firms and undergoes continuous code auditing.
• STRD token holders can participate in governance, voting on validator selection and protocol upgrades.
• Stride integrates well with the Cosmos ecosystem, enabling users to compound yields by using stTokens in DeFi activities.
• The platform supports multiple tokens and offers a seamless staking experience with real-time reward compounding.

Cons

• The STRD token has experienced price declines recently, underperforming the broader crypto market and some similar projects.
• Market activity and trading volume for STRD have decreased at times, indicating fluctuating interest.
• The Stride market is relatively small, so large holders ("whales") can significantly influence price movements.
• Some users may find liquid staking a new or complex concept, which could affect adoption.
• Stride is not currently available for staking on some major platforms like Coinbase.

Overall, Stride offers a secure, liquid staking solution with strong integration in the Cosmos ecosystem and governance features, but its token price and market activity have shown volatility.

Founders of Stride

The founders of Stride are Aidan Salzmann, Riley Edmunds, and Vishal Talasani. They created Stride Labs, the team behind Stride, to build a platform that allows users to stake IBC-compatible tokens and receive liquid staking tokens, enabling liquidity while earning staking rewards in the Cosmos ecosystem.

Investors in Stride

Stride has raised funds through multiple rounds, including a seed round in August 2022 raising $6.7 million and a strategic round in February 2024 raising $4 million. The project is backed by strategic investors interested in the Cosmos ecosystem and liquid staking protocols. Specific names of investors are not detailed in the available information, but the funding rounds indicate support from venture capital and strategic partners focused on DeFi and Cosmos assets.

Halal Status of Stride

Stride is a multichain liquid staking platform within the Cosmos ecosystem that allows users to stake tokens and earn rewards.

Islamic Finance Perspective

• Crypto investments can be halal if the project complies with Islamic finance principles, avoiding interest (riba), gambling, and excessive uncertainty.
• Staking on networks that use Proof of Stake (PoS), like Stride, can be considered halal because it involves helping secure the network and earning rewards directly from it.
• The halal status depends on the specific crypto project’s structure and compliance with Shariah law.

Conclusion

Yes, Stride can be considered halal because it is a staking platform that aligns with halal principles by providing rewards through network participation rather than interest or prohibited activities.