Once you have liquid staked your DYDX tokens on Stride, you will have a positive balance of stDYDX on the Stride chain. In order to provide liquidity on Osmosis, you will need to move your positive stDYDX balance from Stride to the Osmosis chain.
Moving stDYDX tokens from the Stride chain to Osmosis
You can do this in a few very simple ways:
- Direct Deposit on Osmosis
- From the Stride integrations page, you can go directly to Osmosis - you can click on the specific pool you wish to provide liquidity for. Another way to get to Osmosis is to simply visit https://app.osmosis.zone/.
- Click “Connect Wallet” in the top right corner.
- To deposit your stDYDX from Stride to Osmosis, select "Assets" from the left-hand column. Then, select "Deposit." Type the amount you wish to send from your available balance. Complete the transaction in your wallet.
- IBC transfer via Keplr Wallet extension
- Open the Keplr wallet extension in your web browser and search for stDYDX
- You will see the balance of stDYDX and the chain it is located on (if you just liquid staked on Stride, then it will show that it is on the “Stride” chain)
- Select “Send” and toggle to “IBC Send”
- A dropdown of chains to send to will show - select “Osmosis” as the destination chain
- Input the amount of stDYDX you wish to move to the Osmosis chain. Select “Next” and complete the transaction in your wallet
- IBC transfer via https://ibc.fun/
- On the UI, select the chain and token you want to transfer from.
- Then, select the destination chain and token. If you are just transferring your liquid staked tokens from Stride to Osmosis, the token should be the same - only the chain you are sending to will be different.
Note: Using this interface, you are able to not only move a token to a new chain, but you are actually able to swap your tokens while moving them across chains as well.
For example, if you happen to have a high balance of a token, such as STRD on the Stride chain, and you want to acquire your stDYDX quickly and have it ready for you on the Osmosis chain, you can IBC swap your STRD on Stride for stDYDX on Osmosis.
You can now check your token balance directly in Keplr to see what your new token balance on Osmosis is!
Providing stDYDX Liquidity on Osmosis
After completing the deposit, you can now add your available funds to a liquidity pool.
- On the Osmosis app, select "Pools" from the left-hand column.
- Search for the relevant stToken you are going to use to provide liquidity. In this case, type “stDYDX” into the search bar. (Note: some pools are externally incentivized).
Each pool has a pool ID number. For instance, The stDYDX/DYDX pool uses Pool ID #1423.
The stDYDX/OSMO pool uses Pool ID #1429.
For this example, we will add liquidity to the stDYDX/DYDX pool.
Note: For this pool, you need a positive balance of DYDX as well in order to open a position. At the top of the pool page, you have the option to “Trade Pair” to swap a portion of your stDYDX for DYDX so you can add both to the pool when opening a position.
- On the pool page, you will see the pool’s total liquidity, volume, fees, and the APR. Select "Create position" which will take you to the “Select a Strategy” pop-out.
- NOTE: On most pools at this step, instead of “Create a position” you will just see a button that says “Provide Liquidity” however, because this pool has “Supercharged Liquidity,” you have some more options.
- Supercharged pools, or pools with concentrated liquidity, use a mechanism that allows liquidity providers (LPs) to concentrate their funds around specific price ranges within a liquidity pool, rather than spreading their liquidity evenly across the entire price range.
- This feature allows Osmosis LPs to provide liquidity at a minimum and maximum price. Should the price dip below their defined minimum or over their maximum, they will no longer earn fees. On the other hand, when the price stays within the range, then they would receive higher fees.
- Essentially, the additional step here is determining whether you want a “Managed” position (meaning your pool liquidity position will be monitored by a provider specializing in concentrated liquidity pool management), or a “Manual” position (meaning you will manually monitor your position and provide/withdraw liquidity at your will). For this example, we will do a “Manual” position.
- Then you will see the “Add Liquidity” pop-out. Here, will be able to enter the amount of each asset (DYDX and stDYDX) to provide to the pool. You will also be able to determine what type of position you would like to open, and whether or not you want to deploy a volatility strategy. Toggle through each of the strategies to determine which strategy suits your preferences best.
When the transaction is complete, you see the confirmation message on screen. The pool page will now reflect your new balance in the pool, your earnings, and more options for your assets. At any point, you can remove or increase your liquidity balance as seen below.
That’s it! Congratulations - you have successfully provided liquidity using your stDYDX tokens on Osmosis. At this time, holding stDYDX on a chain enables your eligibility for a limited time Stride airdrop. Read more about it at our blog here:
