Osmosis & Stride

How has Stride's LSD stOSMO impacted validators in the active set? Track the impact of undelegations & transfers to Stride. Which validators were the most impacted by stOSMO? Have the validators most impacted by undelegation received ample delegations from the Stride ICA? How has Stride's ICA staking activity increased/decreased decentralization across the active set?

Introduction

Stride is a blockchain ("zone") that provides liquidity for staked assets. Using Stride, participants can earn both staking and DeFi yields across the Cosmos IBC ecosystem.

Key definitions:

Liquid staking is the act of delegating your tokens to a service that stakes for you without losing access to your funds. A liquid staking provider takes token deposits, stakes those tokens, and gives the depositor a receipt which is redeemable for the staked tokens. The receipt is a representation of those staked tokens that can be traded or used as collateral elsewhere.
LSD (liquid staking derivatives) is a representation of those staked tokens that can be traded or used as collateral elsewhere. In our case, users receive $stOSMO as a LSD for their $OSMO tokens.

Resourses

Data source: osmosis.core.fact_staking, osmosis.core.fact_validators, osmosis.core.fact_transfers tables hosted by FlipsideCrypto.

Informational resourses: Docs on Stride.

Wallet addresses which are used by Stride to delegate tokens to validators can be found on this page.

The analysis, part I: Stride impact on $OSMO undelegations and user analysis

The charts show the undelegations made by Stride users as well as other delegators.

The analysis, part II: Stride impact on validators

Author’s contacts

in Telegram - @George_west

in Discord - George_l#3984

On October 17, it was announced that from October 29, Stride will support liquid staking of $OSMO tokens.

The goal of this analysis is to evaluate the impact that the announcement has on validators and the Osmosis ecosystem.

Part I of the analysis will show Stride’s impact on $OSMO undelegations:

How large is the share of $OSMO undelegations volume made by Stride users in all the undelegated volume?
How many Stride users undelegated their $OSMO tokens. What is the size of average undelegation?
Who are Stride users? Are they small or big players?
How large is the volume of $OSMO and $stOSMO transferred by Stride users?

Part II will show Stride’s impact on validators:

Which validators suffered from undelegations made by Stride users?
Which validators received delegations from Stride?
What is Stride’s impact on Osmosis decentralisation?

By default the analysis covers the period of 60 days from 2022-10-01, but you can change the period by using parameters’s section above. Sign in to Flipsidecrypto account to be able to change the parameters.

Key insights:

3.79M of $OSMO or 12.4% of all $OSMO undelegation volume were made by Stride users from 2022-10-01 to 2022-11-30. The share is rather significant. On October 1, October 15, October 17 (the day of the announcement), November 1 and November 27 most of the undelegations volume were made by Stride users.
Average undelegation amount made by Stride users (9.22K in $OSMO) is much higher than amount made by other users (1800 in $OSMO). It means that Stride attracts big players who seek to increase the rewards and make their funds more liquid.
205 Stride users made 411 $OSMO undelegation transactions. The number of Stride users who undelegated their $OSMO is rather small if you compare it with overall number of undelegators (9.22K).
After November 10 transfers of $stOSMO tokens from Stride significantly decreased but in December the volume increased again. January 5 has seen the record transferred daily volume of 279K $stOSMO.