Methodology

• For transfers look at the osmosis.core.fact_transfers table for stOSMO token transfers and note the wallets that are transferrring.
• For liquidity provision look at osmosis.core.fact_liquidity_provider_actions stOSMO / OSMO pool.
• Active set of validators is considered only the Top 175 validators by rank from osmosis.core.fact_validators
  • From the wallets transferring stOSMO tokens we not the undelegate events for those wallets from osmosis.core.fact_staking table.

Credits

\

Conclusion

• Stride is a good initiative around decentralization in osmosis.
• This almost reminds me of Stader Labs and LunaX where you deposited to Stader Vault and then they would stake your LUNA based on certain validator criteria.
• The metrics show it was all exciting in Nov 2022 when we saw a lot of stOSMO tokens inflow however seems like the trend has slowed down now.
• Once the markets are back maybe we will see Stride rise again.

Tracking stOSMO Transfers

• Total Net positive 1.5M of stOSMO was transferred into the OSMOSIS ecosystem.
  • 266K of stOSMO was transferred out of OSMOSIS ecosystem.
  • 1.8M of stOSMO was transferred into the OSMOSIS ecosystem.
• Nov 1, 2022 saw the highest number of transfers with 334 transfers into the ecosystem.
  • Totalling to 199k stOSMO tokens by 262 wallets.

Tracking OSMO Undelegations - How has Stride's LSD stOSMO impacted validators in the active set?

Track the impact of undelegations to Stride.

• Give below are the un-delegations that the wallets transferring stOSMO have seen.
• Most of the undelegations came in Nov 2022
• Dec and Jan has seen fewer numbers.

Which validators were the most impacted by stOSMO?

• By far the most impacted validator out of the active set is Chorus One and Figment
• Losing at total of 1.75M and and .75M each.
• Surprisingly Chorus One only had a few wallets delegating such a large amount
• Cosmostation had the highest number of undelegating transactions but only 25K OSMO undelegated.

Have the validators most impacted by undelegation received ample delegations from the Stride ICA?

• As per this dashboard, Stride grows with Everstake, Cosmostation, Staking Facilities and Imperator.
• Cosmostation doesn’t seem to be amongst the validators that have had high number of undelegations but it is part of the Stride partner program as well.
• Chorus One and Figment are the ones that are affected by Stride for sure since they are not partners but are affected the most.

How has Strides ICA staking activity increased/decreased decentralization across the active set?

• Only Cosmostation and Imperator seem to be in the active set, with Cosmostation with 9% voting power and imperator with 1.76% voting power.

stOSMO/OSMO Liquidity pools

• A lot of wallets that transferred the stOSMO tokens to Liquidity pools.
• The dates when the stOSMO tokens were transferred to Osmosis line up with when the liquidity was added to stOSMO/OSMO pool.
• The Liquidity providing has been coming down though which means that effect of stride might be coming down.

About Stride

• Users deposit tokens with Stride to mint stTokens, which are liquid staking derivatives (LSDs)
• Stride does not have its own DEX or DeFi ecosystem. Stride exists to serve other DeFi ecosystems, not to grow its own ecosystem
• While there are many DEXes in the Cosmos, Stride has strategically chosen Osmosis as its home base, where the majority of Stride LSD liquidity will be located
• Stride will be launching many pools on Osmosis, and will be incentivizing them with lots of ST
• Speaking of ST, Stride will airdrop 1% of ST to OSMO stakers [1]

Stride’s Plans for Osmosis:

In the short term, Stride LSD pools will increase Osmosis trading volume and TVL.

• Currently, staking suppresses trade volumes. But as more tokens become liquid staked instead of staked, users will likely have a greater tendency to trade.
• Also, LSD pools (eg stOSMO / OSMO) will attract a high amount of liquidity to Osmosis, as half the component tokens will earn staking rewards, and there will be no impermanent loss.[1]

Tracking stOSMO Transfers

• The number of transfers seems to have fallen afterwards.
• It was only after Dec 15, 2022 we saw stOSMO moving out of the ecosystem, before that it was mostly coming in.