Staked DYDX can be converted into a liquid, fungible asset.
dYdX Chain, the Cosmos-based blockchain supporting the dYdX exchange, today enabled liquid staking.
Liquid staking allows stakers securing the dYdX Chain to convert staked DYDX into a liquid staking token, or LST, the dYdX Foundation said in a press release. LSTs are fungible assets that can be traded or used in DeFi applications.
Stride, the largest liquid staking provider in the Cosmos ecosystem, will provide access to the service, while providers, Persistence and Quicksilver, will launch it in the coming days, the announcement said.
Liquid staking further unlocks liquidity for the DYDX token by enabling Stakers to avoid the 30 day un-bonding period. Stakers who traded their tokens for LSTs, will continue to earn dYdX Chain staking rewards.