Multichain

Stride Protocol Integrates Privacy-Focused Chain Namada To Enhance Multichain Data Protection

Stride Protocol Integrates Privacy-Focused Chain Namada To Enhance Multichain Data Protection

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Image: Stride Protocol x Namada

Stride, a leading liquid staking solution for the Cosmos and IBC ecosystem, announced its integration with Namada, a multichain privacy-focused Layer 1 blockchain protocol. The integration aims to extend data privacy across multiple blockchains and enhance utility and rewards for liquid staking token (LST) holders. According to the press release, the partnership will “unlock industry-leading data protection” for users, allowing LST holders to contribute to multichain privacy on Namada and receive rewards. 

Holders of Stride’s LSTs will be able to utilize their tokens on Namada by adding them to the shielded pool of assets. This will provide themselves and other Namada users with privacy and security over their data. By leveraging Namada’s multi-asset shielded pool, or MASP, holders of Stride’s liquid staking tokens can start earning shielding rewards – in addition to their staking rewards – for protecting their data and strengthening Namada’s shielded set. 

Speaking on the integration, Dieter Fishbein, CCO of Heliax, a public goods lab developing on Namada, stated:

“Stride is the leading liquid staking solution for the Cosmos ecosystem, so we’re excited to enable Namada shielding for users of all Stride LSTs. This integration is a big step towards the goal of bringing data protection capabilities to DeFi not just on Cosmos but the broader crypto ecosystem.”

Namada provides a shielded asset hub that rewards users for protecting the multichain. Namada’s MASP provides similar privacy assurances as Zcash but for many tokens and crypto coins. This enables Namada to provide modular data protection capabilities to any existing blockchain network or decentralized application, with support for shielded cross-chain transfers. As more tokens are held across the shielded pool, the privacy and data security on the platform increases, and more users are rewarded for strengthening the data protection for other users in the ecosystem. 

Enhanced Functionalities for Liquid Staking Tokens (LSTs)

Staking has grown into one of the most important components of decentralized finance (DeFi), allowing token holders to stake their coins and receive rewards for providing security to the blockchain. However, traditional staking has its pitfalls, in that users cannot access the value of their tokens once staked. Liquid staking aims to overcome this obstacle by allowing stakers to access the value of their staked tokens while still deploying their tokens as collateral. 

Consequently, Stride’s high-efficiency LSTs are particularly well-suited for Namada’s shielded set: users can leave their tokens shielded on Namada with the potential of NAM shielding rewards, while simultaneously generating staking rewards.

Via the collaboration with Namada, Stride users will be able to gain superior data protection, enabling them to hold and transact tokens and NFTs while maintaining full control over their data and personally identifiable information. Notwithstanding, users can shield their data when interacting with transparent blockchains and seeding new accounts. 

Holders of major LSTs on Stride will now be eligible for Namada shielding rewards ($NAM) if they add their LSTs to the shielded pool. This means that users can collect both staking rewards and shielding rewards on the same assets while enjoying industry-leading data protection guarantees. 

“Namada and Stride protocol will work together synergistically,” Stride Contributor John Galt said. “With Stride LSTs, users will be able to earn staking rewards on their Cosmos tokens while using Namada’s shielded pool and collecting NAM shielding rewards.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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