Osmosis has been a fantastic Degen experience in the last months. However, despite the current market sentiment, $OSMO is holding firm & showing tremendous strength ๐งช
What are current farming opportunities, and what does an experimental farmer consider? Let's deep dive!
๐๐งต\n
1/ Frist, let's focus on the yield and LP bonding mechanism.
As for many AMMs, @osmosiszone offers three yield opportunities for LPs: Swap Fees, Farming Rewards, and External Incentives ๐ฐ
However, the front-end shows only APRs on $OSMO as Farming Rewards ๐งฎ
2/ Second, @osmosiszone uses an exquisite bonding mechanism to incentivize sustainable farming ๐
The longer you bond your LP, the higher your rewards in $OSMO. You can choose between 1, 7, and 14 days.
3/ In case of unbonding, you still earn rewards. Nevertheless, you will fall back one "reward rank."
If you bond for 14 days, you will fall back to the "7-Day" reward for the first seven days. Afterward, you will get the "1-Day" reward in the next seven days.
4/ Ok, got it! So what about farming APRs, sir? ๐
Farming on @osmosiszone is very lucrative and sustainable due to LP bonding. Below, you see the historical APRs for the TOP8 LTV pairs until yesterday.
The APRs below contain Swap Fees, Farming Rewards, and External Incentives.
5/ But sir, my familia! Dont'show the APRs; Degens will rush to get them!
No worries, sir. Due to $OSMO being the DEX and chain simultaneously, the $OSMO token captures value like no other DEX ๐งช
With $OSMO as the primary pair, the price of OSMO rises with the TVL.
6/ The upside for eco farmers lies within the current swap fees. 90% APR in $OSMO is great, but even more native swap fees for $LUNA and other L1.
Below, you find a breakdown of the LUNA-OSMO pair, which has had fantastic swap fees besides the rewards that are on the UI ๐งโ๐พ
7/ By the way: You qualify for different airdrops being a LP on @osmosiszone
You might be already eligible for using Osmosis in the past. You find a great overview of all the airdrops on @CosmosUplink ๐๐
Nevertheless, the core team is creating a unique set of in-house protocols to ensure a strong foundation for a web3 economy.
The main economic drivers are FIN & ORCA ๐ณ
2/ While ORCA is designated to capture considerable market shares due to its unique design and proven use case of liquidations, the focus has been set on FIN, as it offers an immediate use and market fit as an on-chain orderbook ๐ฏ
I am proud to announce that we entered the active validator set on @InjectiveLabs ๐ฅท You can stake your precious $INJ with us, nINJas!
And what a pleasing place next to our friends @stakecito ๐ค
/n
1/ As you know, we are trying to expand our Cosmos network to keep contributing as a community validator, which lives the spirit of web3.
A special thank you goes to @InjectiveLabs, giving us the chance to prove our technical knowledge & engagement with an initial delegation.
2/ With my partner and friends @daic_capital, we will contribute to the growing ecosystem of @InjectiveLabs and support the process of decentralization of the current set.
Look forward to more pieces on an ecosystem that I had very long on my personal list!
1/ I think I do not need to review what happened to the chain in May. Three significant events are relevant:
1. Staking was disabled on Classic to prevent an attack as so much $LUNA was minted. 2. The mint/burn between UST and LUNA was disabled. 3. A new chain was bootstrapped.
2/ Since then, the Classic chain was basically left behind by TFL, which facilitated all the implementations pre-crash.
Is this cool? For sure not. Might there be legal implications for this? I don't know. But for sure, the chain seems to have no future under these conditions.
The new @terra_money governance proposal 870, "Validator minimum commission update," is discussed controversially.
As a validator, my partner @daic and I decided to vote "No".
n/๐งต๐
1/ The commission is the primary revenue stream for validators that have the task of running and securing the network.
This economic incentive is needed to offset the infrastructure cost of the network nodes. And as you know, I see it as a way to even cross-fund my content.
2/ Thus, economically, there is a need for a commission. Without commissions, the validator would subsidize the network and run at a loss.
As for ourselves, some entities validate multiple chains & use earnings from other networks to be more aggressive in attracting funds.