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!
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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