Stride (STRD)

Liquid Staking

Stride allows users to stake tokens from the Cosmos ecosystem and receive liquid staking tokens (stTokens) in return. These stTokens represent the staked assets and can be used like regular cryptocurrencies, enabling users to earn staking rewards while still having liquidity. This means users can trade, lend, provide liquidity on decentralized exchanges (DEXs), or use stTokens as collateral for loans or futures positions.

Governance

Stride’s STRD token serves as a governance token. Holders can vote on important decisions such as validator selection and protocol upgrades, giving the community control over the future development of the Stride ecosystem.

Payment and Store of Value

Stride can also be used as a means of payment and a store of value, supporting everyday transactions and long-term asset management within its ecosystem.

Ecosystem Growth and Collaboration

STRD tokens are used to foster partnerships with other Cosmos DeFi projects and promote the development of new use cases for staked tokens, helping to grow the overall Cosmos liquid staking sector.

Advantages

Stride offers a secure and decentralized platform with continuous security audits and advanced safety features. It enables users to stake tokens from multiple Cosmos chains and receive liquid staking derivatives, providing liquidity while earning staking rewards. The STRD token allows holders to participate in governance decisions like validator selection and protocol upgrades. Stride benefits from strong economic security through Interchain Security from Cosmos Hub, valued at about $3 billion. It has a growing ecosystem with real rewards, averaging a 4.93% real rewards rate, and supports seamless integration within the broader crypto landscape.

Disadvantages

Stride’s market is relatively small, making it more susceptible to price influence by large holders ("whales"). The price of STRD can fluctuate frequently, which may affect trading outcomes. While the project is growing, its long-term value depends on wider adoption and real-world use cases expanding beyond the current ecosystem. The total value locked (TVL) and revenue figures suggest it is still developing compared to top-tier liquid staking providers.

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 while maintaining liquidity and earning rewards.

Investors in Stride

Stride is primarily backed by institutional investors and select non-institutional investors. The company Strategy (formerly MicroStrategy), which is the largest corporate holder of Bitcoin, offers 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock to these investors. The funds raised are used for general corporate purposes, including buying more Bitcoin.

Investment Structure

Stride shares are designed to provide investors with a 10% yield from Bitcoin exposure without directly buying Bitcoin. This makes it attractive for long-term investors interested in Bitcoin-related assets.

Community and Market

Stride also has a community of holders who stake STRD tokens to participate in governance and earn rewards. The token is used within the Cosmos blockchain ecosystem for liquid staking and governance decisions.

Halal Status of Stride

• General Crypto Halal Principles: Cryptocurrencies are considered halal if they comply with Shariah law, which means avoiding interest (riba), gambling (maysir), excessive uncertainty (gharar), and involvement in haram activities. They should be transparent, asset-backed, or based on profit-sharing.

• Stride Specifics: There is no direct information stating that Stride is halal or haram. However, Stride is a blockchain that provides liquidity for staked assets and allows earning staking and DeFi yields. Since DeFi and staking can involve complex financial mechanisms, the halal status depends on whether these activities comply with Shariah principles.

• Scholarly Views: Islamic finance experts say crypto is halal if the project itself is halal. Since Stride involves staking and DeFi, its halal status would require a detailed Shariah compliance review.

Answer: No clear yes or no can be given based on available information. The halal status of Stride depends on its compliance with Shariah principles, which is not explicitly confirmed.