After 2 days of waiting, the LP incentives are starting to churn. Almost immediately, more accounts are now adding more to the LP pools! The TVL is already growing every moment.
I have placed my LP in the AKT:ATOM pool about 2 days ago. Also, I bonded my LP for 7 days to test this feature. It didn't have a big difference to the 14 day bonding period, APY 3,059.92%. The small margin is probably because of the users who wanted to showcase how strong their support to the platform by bonding their LPs to the maximum 14 day period.
The bonding period determines the reward allocation for a specific pool. The percentage allocation for a specific bonding rate is fixed. Every user will have the freedom to select to which bonding period will they place their LPs. That's the gamified aspect of the bonding period. In theory, the longer bonding period should accrue more rewards since the allocation of rewards will be greater than the shorter bonding periods. However, since many of the users knew about this, they presume that rewards will be greater. Since more and more users bonded their LPs into the 14 day period, then it became congested. As a result, the APY for the 7-day period and the 14-day period don't have a huge difference.
The way I see it, the APYs will at some point balance as more and more users join the LP pools. Many of the users will be hunting those juicy APYs and that's perfectly normal in a Defi platform. Especially that Osmosis only requires a tiny gas fee to go in and out of the pools. Take note, there are no Deposit fees for entering a pool, even for non-Osmo pool. You may be able to provide LP for under a dollar regardless of the amount.
Even the swap fees are quite cheap as well, at 0.3% you may easily offset the fee through your LP incentives.
The UI is also updated, does the Osmosis Team even sleep? They are making it look easy putting up this incredible project in the Cosmos Hub.
Having these pointers in mind, even BSC Defi platforms won't be able to match the efficiency that Osmosis is bringing to the table. It's cheap, fast, and fully decentralized. Osmosis transactions are directly recorded to the blockchain and the frontend is running of Akash Network; which makes it truly unstopable!
Also, there will be ETH bridge to the Cosmos Hub in the near future. Damn! Cosmos Hub Blockchains is about to take a huge portion of the crypto space with the phase they are moving right now. Cheers!
OSMO Defi platform app: https://app.osmosis.zone/
My journey to the world of crypto.
NFA: Not Financial Advice!
