As a friendly nudge/alert to those who pay attention to my posts, I wanted to make sure more people become aware of a gem blockchain called Osmosis, which resides in the Cosmos ecosystem.
First, you need to do your own research before making any investments, especially as this is not any form of financial advice. Yadda yad... However, as I've gotten my friends into this, I want to share it with more people who know me so they have the opportunity to benefit if they see the value. After Facetime calls and in-person visits, it's helped many novices become hands-on in Defi. I get no referrals or anything. This is just to help others learn and prosper. I've seen the light for years and want things to click for those who I'm close with who'd otherwise never delve into these things.
I should highlight that if you had Atom staked on chain on Feb 18th, 2021, you have OSMO and need to claim it as the airdrop is decaying! To do this, you'll need to use the Keplr wallet and https://app.osmosis.zone/. Feel free to reply if you need help. Keplr is like Metamask and is the only real wallet that works with Osmosis and Emeris* now.
In fact, many Cosmos ecosystem airdrops are around the corner, and there were recent snapshots for Sunny, Juno and XPRT to name a few. The money flow is amazing and highly organic, just like in Splinterlands, which I've also finally gotten into. This is a cash cow ecosystem and should not be ignored. It makes the nuances on Hive about people gaming the informally centralized system seem like an outdated Blockchain 1.0, and that's what I needed.
As another good tip, a proposal was recently passed to integrate ShapeShift Fox with Osmosis, so if you're stuck with that due to high Uniswap conversion fees, there's light at the end of that tunnel.
Since I claimed my OSMO airdrop in early July for holding Atom I had staked for the Feb snap, the profit from the OSMO staking and OSMO Liquidity Pools has been absurdly awesome. Even if you just had unstaked Atom on chain in a wallet you controlled then, you'd get some.
The OSMO staking rewards were initially immense, but they've slowly decayed to still be a whopping 172% now. You can check out the OSMO staking rewards by validator at https://osmosis.smartstake.io/calc.
OSMO is payable per daily epoch via low-fee delegation pools that often refund slashing. Staking other tokens on Keplr from within the Cosmos ecosystem is a breeze, offering yields up to 47% (Akash AKT for example), a nice hedge. It's also allowed me to get CRO via trading within Osmosis, which can be put into a Liquidity Pool for 270% at today's rate. As OSMO rises and CRO stays level, my CRO holdings are growing even more (by plan) to keep the pool balanced. It's like average total costing in. CRO can also be staked via Keplr for 15% returns. Amazing options.
While I have a pretty penny of Osmo staked, the Liquidity Pools I alluded to above have been absolute GOLD. APR's were initially jaw-dropping high, and have slid down in the 200-270% range. Woe is me, right? That's still off the charts good.
While some have relatively fallen off to still be leaps and bounds higher than normal staking and pools on other defi sites (like 150% APR), several are staying strong well 200%.
Oh, did I mention that there are ZERO FEES for many transactions during the onboarding phase? Swaps have a small swap fee outside of the network transaction though.
While it's tempting to borrow and lend on AAVE or Solana, this is far more productive and hands-off for me personally. Sure, it's a newer ecosystem, but I feel relatively comfortable with it after daily use since early July. I've also learned much more about the devs, upcoming plans, Inter-Blockchain Communication (IBC) protocols, airdrops, and the general future of the Cosmos ecosystem. I probably share this optimism with those getting in on the ecosystem since the OSMO rates have incentivized bigger money to move over. The ecosystem is still very young and small as compared to others, which means OPPORTUNITY.
You can see the current Liquidity Pool rates and opportunities at https://app.osmosis.zone/pools.
Osmo and Atom have been on a solid price tear recently, as more money has become privy to this hidden gem, and the initial airdrop sellers have flushed out. This doesn't mean that you need to jump and buy in the green here, but if you consider the huge yields you can get, it's a nice option to diversify into and compound. IBC transactions are also new tech that's going to attract more chains, including blue chips over time.
I personally view this entire ecosystem as a rent and diversification factory, mostly generated with free airdrop money. It's better than the UNI drop because the money can compound greatly for many months to come. Beautiful.
With LP's you have risks, mainly in impermanent loss, but you're still getting huge daily returns to offset this. As I've mentioned that these returns are well over 200% APR in many cases, it's worth it to me.
As a tip, the Atom/Osmo pool has been amazingly stable in terms of its interest (200-225% in recent weeks), especially because the two tokens have been highly correlated to move together...reducing impermanent loss. It was even higher, but it's settled in nicely. This doesn't mean that these rates are going to stay, but they're well over 100% and will stay that way for a long time.
To share some of my experience, I've taken a mild impermanent loss hit on some pools like AKT/Osmo when the interest was a few notches higher than the Atom/Osmo pool, but it exposed me to AKT. I'm nearly fully unbonded there now to then reallocate my liquidity from that pool as I choose. Lesson learned and I'm going to keep the extra AKT I got for the long haul to stake at 47% on Keplr. As per above, I actually like the impermanent loss in my CRO/OSMO pool at 270% because I want more CRO for their card benefit tiers over time. Even if it rebalances to be even over time, I still win, and made a huge yield all along.
Key note: The nice thing about unbonding liquidity on Osmosis versus unstaking stake is that the LPs continue to generate interest for the entire 1, 7 or 14 day unbonding periods you choose. The longer the unbond period you set, the more interest you get to compensate. With a 14 day unbonding, you get the highest interest for the first 7 days of the unbond, then the middle tier % of interest until the last day, which has one day payout at the lowest % interest tier. This is just fine for me versus going cold turkey. The money is always at work and paying out around 1:08 PM, my favorite time of the day.
I've generally taken the daily OSMO interest form staking/pools and reinvested most of it in the pools to continue compounding. I'm currently halfway to my staked amount, but it's "hockey-sticking" upward now. I've also moved some OSMO yield into other Cosmos projects, into Atom on chain over IBC to stake for future airdrops (just caught the XRPT one on Sept 2!), and will eventually use it to diversify more generally. I can even go OSMO>ATOM>USD if I wanted, and may do that when the bull run is really ripping to take some free profit out.
While the ROI on this is so strong, and I regularly debate going in deeper to ride the huge payouts, I'm forcing myself to take it slow to grow it almost all organically. I did swap out of one smaller cap alt coin that was flat and add it to the Osmosis ecosystem months ago, and this was a smart move. If I swapped more when OSMO was under $2 (sigh for not) or borrowed with blue chips as collateral to buy more Atom>OSMO, it'd be jaw dropping daily payouts that could continue to compound, but I will NOT get greedy.
This free money is a gift and it's grown exponentially as I've continued to compound most of the yield at 200%++ on top of the 200%++. The days of 300-500%+ are likely over, but there's still a magic opportunity here. The risk is generally pretty low outside of price volatility.
That's it for now. I highly recommend exploring this. If you have Atom, the Osmo and Atom tokens have been moving in tandem, so there's a good opportunity to diversify to swap some Atom into Osmo to get in the game with the Liquidity Pool at 200%+ APR. Once you get the daily payout at 1:08 PM EST, and watch the LP and staking pools grow, you'll see the adoption surging in. It's a good place to have some exposure, but only if you have money you can afford to lose if it all goes poof.
Here are the current IBC assets on Osmosis. It's still new and will continue to grow!
Don't Fomo in. Average in if you want. Do your own research as past performance doesn't guarantee or indicate future results. Again, if you have Atom, swapping some to OSMO is an economical move with their similar price action lately.
Thanks for your interest and I hope this helps open some eyes up to this ecosystem. Please let me know if it did and share with others.
...You can put your SBD in savings for 3% yearly or take some liquidity from payouts and get that money compounding much better off-chain, and then bring it back here later. I'm excited to buy a couple of Splinterlands cards with the daily OSMO>ATOM>TBD>HIVE runoff. Watch out on the battle front.
Also, maybe Hive would be wise to integrate over IBC with Cosmos and shake things up around here with channels for more liquidity and yield than the tired old dinosaur whale accounts who milk the rewards pool.
Thanks,
@steemmatt
Bonus Tips:
- Emeris also came out recently, which integrates with Osmosis and Keplr in the Cosmos ecosystem. It's really new there, but you can swap tokens for small fees and stake there as well. Staking rewards haven't been voted on yet, but there's a good chance that those who have swapped and staked there will be eligible for future airdrops.
- Keep an eye on https://twitter.com/pStakeFinance and Gravity Dex.
- Again, consider staking some Atom on-chain, and some liquidity on Osmosis and Emeris for future airdrops. Make some swaps. The Cosmos chain has been very generous and is slated to continue to be.