Although Terra projects are expanding rapidly there has also been growth in other blockchains that has some association with Terra. For instance liquidity pools with rewards yielding triple digits to high two digits for months. Today we get to look at some of these long standing and still highly active liquidity pools on the Osmosis's blockchain.
Before we go straight on over to invest in Osmosis with Terra tokens it should be clear that Osmosis runs on its own blockchain, which is separate from Terra. In order to partake in Osmosis we have have bridge assets from Terra to Osmosis. I briefly explain what bridges are and explain the Terra Bridge Here.
Is a decentralized exchange and currently trading volume is above $1.3 billion. In addition Terra's UST and Luna tokens are ranked 3rd and 4th in most traded tokens on the platform. There is attention on Terra over at the Osmosis blockchain.
The most APR % earned pool related to a Terra token is currently the UST : Osmosis pool at over 150% APR. To farm in any of these pools you need to provide 50% of each of the two assets in the value of $ into the pool. Then select a bonding term for the assets to be locked in the pool. It can be 1 day, 7 days, or 21 days with more APR the longer the bond. Once the liquidity is staked investors earn daily OSMO token which is the native token of Osmosis. In addition the rewards that is earned daily is free to be used to what ever the investor pleases. They can reinvest in pool to increase earnings or withdraw to invest somewhere else.
The bonding of assets on Osmosis locks up your principal for a fixed amount of days either 1 day, 7 days, or 21 days and at the end of term you are able to move the assets to different pool or withdraw out of Osmosis all together. The ability to pay rewards comes from the fees Osmosis collects from traders who do swaps on the platform and the tokenomics of OSMO token distribution.
Since Osmosis is its own blockchain it will need a different wallet from what we are accustom to of MetaMask for ETH or Terra Station for Terra. For Osmosis it is Keplr.
Getting back to the amazing rewards in the pools on Osmosis we only looked at one out of the current 6 pools that has associated Terra token assets. Yet Osmosis as a whole has over 500 pools to participate in.
In addition to the choices the longevity of the program has stood the test of time in crypto terms. Nearly running over a year with the Terra token pools.
The native token OSMO has continue to rise in price and this is likely due to the ability to convert the token for pool rewards to either more UST or Luna and allow investors to continue compounding their earnings by staking into the pools. The bonding aspect only benefits the protocol even more by making users stick with the platform longer with lock up periods and users earning more and re-staking the earnings back onto the platform.
Osmosis is a great choice to enhance earning yields and also a good outlet to multiple different blockchains beyond that of what is in Terra. By staking on Osmosis there is the potential to swap earnings and assets to different blockchains such as ION, Crypto.com, and many more.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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