Thread by @CosmosHOSS

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#SUPERFLUID details for @osmosiszone
- Suppose the spot price in the pool is 1 $ATOM = 2 $OSMO.

- Suppose you have provided 100 OSMO and 50 $ATOM worth of liquidity to Pool #1.

- Suppose you have designated validator "Dogemosis" as your superfluid validator.

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-Superfluid discount factor is set to 10%

*Result*

- Your delegation to "Dogemosis" will increase by 100 OSMO * (1-DISCOUNT_FACTOR) = 90 OSMO.

- You would then get staking rewards for an equivalent amount of 90 OSMO delegated to Dogemosis. However, you also then take
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on slashing risk from Dogemosis.

- If Dogemosis gets a 5% slash due to double signing,
then 5% of your LP shares '(5 OSMO, 2.5 ATOM)' get
sent to the community pool. Note that slashing amount
does not take into account the risk factor parameter, and slashes the
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entire amount of super fluid LP shares. In essence , effective slashing rate increases to the lower the risk factor is set to.

#### On Changes to the delegation amount depending on changes in spot price.

Lets now suppose the spot price
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in the pool changes during this epoch to be 1 $ATOM = 1 $OSMO, and your LP share changes to being (75 $OSMO, 75 $ATOM).

Upon the next #osmosisepoch, the effective staked
$OSMO amount will be calculated as 75 OSMO * (1-
DISCOUNT_FACTOR) = 67.5 $OSMO to reflect the

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change in the underlying $OSMO amount of the LP token.

☑️As the amount of $OSMO backing the LP share increased (hence increasing the effective superfluid staked amount), the staking rewards will also increase.
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Facts:

☑️Superfluid staking is very dynamic and can still be affected by IL.

☑️Staking rewards will move very wildly🤯

☑️ The lower the $OSMO price, the higher the APR% in pools from sfs.
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☑️The higher the $OSMO price, the higher the APR%
in pools from LP incentives.

🤔 Imagine superfluid staking implemented in the UST-OSMO pool.🎆

☑️NFA but the price of $OSMO is going to 🚀

#IBCgang #CosmosEcosystem #Osmosis #crypto #DeFi #FinancialFreedom #FOMO #WAGMI

$ATOM $OSMO $UST #IBCGang