The Stride Redemption Rate Oracle Contract uses an interchain account (ICA) to provide the redemption rates of Stride’s stTokens to the Osmosis blockchain in a decentralized manner.
If uploaded to Osmosis, the Oracle Contract’s feeds could be used to 1) trustlessly handle the scaling factor for stToken stableswap pools, and 2) could be integrated with Mars’ oracle implementation to provide a more dependable oracle price for stTokens.
The way Stride’s liquid staking works is - stTokens represent underlying staked tokens, which are controlled by the Stride blockchain. At any time, a user may use his stToken to redeem a certain amount of its underlying token. The amount of underlying tokens a single stToken can redeem is called the redemption rate. For example, on the Stride blockchain 1 stATOM can currently be used to redeem 1.205 ATOM. So 1.205 is the current redemption rate for stATOM. To continue with the example, the market price of stATOM vs ATOM may fluctuate - but the true value of stATOM vs ATOM is defined by the redemption rate.
The Oracle Contract uses an ICA to provide redemption rates for Stride’s stTokens to the Osmosis blockchain in a decentralized manner. As mentioned above, stToken redemption rates on Osmosis can be used to trustlessly manage the scaling factors for stToken stableswap pools and to strengthen stToken price oracles on Osmosis.
Code repository: Github - https://github.com/Stride-Labs/ica-oracle
Commit hash: 32ddf060949e7486078137c40994bc10f7c8a553
Compiler version: cosmwasm/rust-optimizer:0.12.13
Target onchain date: August 30th