What is Stride?
Understanding the LSM
Understanding the LSM
The Liquid Staking Module (LSM), originally developed by Iqlusion, adds native liquid staking to the Cosmos SDK. Delegators on chains that implement the LSM can instantly convert their staked tokens to liquid staked validator shares. These validator shares can then be instantly rehypothecated by liquid staking providers like Stride into liquid staked tokens.
Uses
Currently, the only chain that has enabled the LSM is the Cosmos Hub. As a result, ATOM delegators can instantly convert their staked ATOM to stATOM on the Stride app without waiting for the 21 day unstaking period by clicking the "pull from natively staked balance" toggle before initiating the liquid staking transaction.
As other chains upgrade to support the Liquid Staking Module in the future, Stride will be capable of allowing other stTokens to be pulled from a user’s natively staked balance.
Further Reading
For a deeper dive on LSM functionality, see the following resources: