While much of the crypto market has been looking shaky of late, and the majors BTC and ETH are well below their peak and struggling it seems, one eco-system has been powering steadily forwards. The Cosmos has carried through this little downturn barely skipping a beat. Again today, ATOM has pushed over $40, and many other Cosmos coins are performing very nicely.
Most of these have one thing in common, deep liquidity on Osmosis.
OSMO ATH.
Again today, OSMO has set its new ATH, just a short time ago at $9.34. It has more than doubled in value, from around $4 just a month ago.
Many Cosmos eco-system coins share one thing in common, Osmosis as their primary liquidity center. Many newer projects are not even on any CEX's, some more established may have some CEX support, but Osmosis has become the main liquidity location. They are also benefiting from being "pegged" through very deep liquidity pairings with OSMO and ATOM.
OSMO has in recent days passed some notable projects in the market cap rankings, such as SUSHI, OHM, CRV, MKR and even the darling of the Leofinance community, RUNE. Yup, OSMO market cap is now well above RUNE, with the gap increasing daily. Currently at rank 59, it is closing in on other notable tokens like AAVE, CAKE and EOS.
Why?
Firstly, the UX is one of the best in DeFi. Smooth, importing and exporting of tokens from dozens of different chains. High incentives for LP's, that have held up over time. I can't remember seeing the OSMO/ATOM pool for example ever dropping below 100% APR, and it has currently over $450 million in liquidity just in that one pool alone.
I think that the real secret is the fact that to earn this high yield, you have to bond your LP shares for up to 14 days. This has had the effect of making the liquidity much "stickier", as people ride out the occasional downturn and just keep collecting the 100% APR along the way. Initially, there was a fear in some circles that OSMO may follow the trend of many other high inflation coins - and hit a point where high APR's were offset by sliding token prices. There was some evidence early on that this may happen, with many ATOM holders in particular pooling on Osmosis and swapping all their OSMO income back into ATOM to build their ATOM stake.
Over the longer run, however, this has not proven to be the case, as OSMO has become a high quality, sought after asset in its own right. The other thing going for Osmosis is that it has quickly become THE Dex for the Cosmos. Gravity Dex had a troubled start and never really gained any traction, with a lack of incentives giving it very little widespread appeal. Sifchain tried once they implemented IBC, but poor execution of a number of initiatives from a confusing and troubled airdrop, to unclear and difficult incentivization attempts have stunted any successes it may have had. No matter what perspective you hold, Osmosis has already won the "Cosmos Dex" space, and is in ascendancy.
The other key driver for continued demand for Osmosis is its attractiveness to new chains in the Cosmos. Cosmos is unique in that it has much lower barriers to entry for new projects, instead of launching as layer 2's on various EVM chains, projects can simply spin up their own chain, add a native token, and tap in to Osmosis to launch their coin through an LBP, and then incentivized pools soon follow. This continues to suck more OSMO in to these liquidity pools, and daily rewards seem to be continually compounded rather than sold off. Add it the ability for external projects to add their own incentives on top of the OSMO rewards, and we can see why this platform has grown exponentially over the last few months.
What's to come?
In my opinion, the killer feature for Osmosis is yet to be rolled out. Superfluid staking is coming, hopefully some time in the current Q1 period. Up until that point, OSMO holders have had a decision to make, stake their OSMO for around 100% staking APR, or pool it with other tokens for varying APR's ranging from 40% up to 200% or more, depending on the pool.
Superfluid staking will be a game changer, allowing Osmosis participants to effectively have their cake and eat it also. OSMO added to LP positions, provided it is bonded presumably in the 14 day guages, will be counted as staked for the purposes of chain security, governance and staking rewards. Yes, OSMO in LP's will earn staking rewards, as well as LP incentives. Double dipping never sounded so rewarding.
Osmosis is implementing a different approach to "staking derivatives" than many other chains are looking at. With most current or proposed liquid staking options, you stake the token, receive a different token as a representation of that stake, and then use that derivative within some DeFi ecosystem in some ways. Osmosis however is flipping that, by simply counting OSMO in LP's that is bonded for 14 day, as staked. The security level is the same as staking for these tokens in an LP, so this process actually enhances chain security, rather than adding risk factors that other liquid staking options present.
The design of Osmosis's "superfluid staking" is both elegant, and enticing, and I believe will strongly propel OSMO further up the coin rankings in the months to come. Who wouldn't want a token that can be added to an LP position, and earn both a high staking reward (likely to drop significantly during this process well below 100% to maybe 70% APR for staking), and a high LP incentive at the same time?
My Non-financial advice is, if you have been sleeping on Osmosis, wake up quickly.
Thanks for reading,
JK.
Leofinance is a great community to come talk crypto, and investments of all kinds. Simply click the get started in the top right corner, if you have not already got a Hive account. Signup is simple.
Posted Using LeoFinance Beta
The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
Lol, with me being 100% of my time involved with ONEUP, I hadn't even claimed my daily rewards to repool them. Should have a look, that should be worth now quite a bit. !1UP 100
You should check in and see what is there, could be a pleasant surprise. Might need to add a few minutes each day for compounding.
Posted Using LeoFinance Beta
I woke up. I got in. I need to grow. Osmosis and cosmos ecosystem is great fun. Just imagine when $osmo is listed on major exchanges.
Posted Using LeoFinance Beta
Where we are going, we don't need major exchanges.
Just imagine when Osmosis is the major exchange that cryptos aim to be on.
Posted Using LeoFinance Beta
That would be great. Let me collect as much $OSMO as I can get. I am aiming to have at least 100 ATOM in my wallet. I will stake OSMO next.
Posted Using LeoFinance Beta
You have received a 1UP from @flauwy!
@leo-curatorAnd look, they brought !PIZZA 🍕
Delegate your tribe tokens to our Cartel curation accounts and earn daily rewards. Join the family on Discord.
PIZZA Holders sent $PIZZA tips in this post's comments:
@curation-cartel(11/20) tipped @jk6276 (x1)
Join us in Discord!
Before I understood what Cosmos is really about, I thought adding IBC wouldn't help Hive. Now that I've been on Cosmos for a while, I really would see a major step forward if Hive will add IBC support. Cosmos ecosystem is doing what others dream or talk about regarding interoperability.
I wrote about that ages ago, might be worth revisiting.
https://leofinance.io/@jk6276/hive-hard-fork-26-suggestion-for-consideration
I'm actually keeping an eye out on something... One of the people that was involved in Blurt is heavy in the Cosmos eco-system. I had heard some talk that he was working on enabling IBC on Blurt. If that work gets done, Hive should definitely contribute, or adapt the likely open source code work to bring it IBC to hive. It's all gone quiet, so not sure if it is still on the cards, or in the too hard basket.
If full on IBC support is too hard, at least a bridge for HIVE and HBD (and LEO) across to the cosmos would be nice.
Could be possible as a work around once Gravity Bridge is fully operational, moving WLEO into Cosmos. Maybe PLEO or BLEO if gravity supports all EVM, not just Ethereum.
Posted Using LeoFinance Beta
I have been following your blog's about the COSMOS and finally pulled the trigger and threw some assets over there. I have some staked ATOM and am in the ATOM/OSMO pool on Osmosis. I have been pretty happy with this move as the rest of the market dumped, this ecosystem stayed very resilient. Thank you for putting me onto this one.
Posted Using LeoFinance Beta
ATOM/OSMO pool is a great place to be. 100% APR on blue chip assets, can't ask for more.
Compound earnings if you can and watch it grow.
One thing to keep in mind is that while some airdrops will include the LP's, many will only drop to stakers, so the high APR is a trade off for possibly missing some airdrops in the future.
Still, congrats on getting in, hopefully ATOM and OSMO will continue to outperform the market. (No promises)
Posted Using LeoFinance Beta
Yeah, I plan on leaving it in there long term and letting it grow. I am staking ATOM and will likely stake some OSMO too based on what you are saying about airdrops... I'd like to get in on the airdrop insanity in the cosmos. Thanks!
Am new to this OSMO, pls where do I start?
Posted Using LeoFinance Beta
First step, get a Keplr wallet - It's a browser extension similar to Metamask, but for Cosmos assets. There are other options but this is the easiest safe choice.
Next, gather the funds you want to invest, and trade them on a CEX to ATOM, LUNA or UST. (ATOM is a little easier, but the others will work fine also).
Withdraw from the CEX to your new Keplr wallet.
Connect to https://app.osmosis.zone/
Go to assets tab, and deposit your coins.
Trade and add to the LP from there.
Posted Using LeoFinance Beta
With a little time to catch up some, loved this post @jk6276. "Rise and rise" indeed! 😉
Having steadily built up a considerable stake in Osmosis, I could hardly be happier with how it has performed. There is a lot to like. With the upcoming events of "superfluid staking" and launch of EVMOS, sounds like Osmosis is going from "strength to strength."
I wonder if OSMO will become a +$100 dollar token, now that it just succeeded in becoming a +$10 token in the last couple of days?
Posted Using LeoFinance Beta
A 10X from here would put it up around the top 10 market cap. A tall ask but do-able. Conditions I think would be needed:
If some of these happen over the coming months, OSMO growth should roll on.
Biggest risks:
All in all, I like the balance of probabilities here, but it is worth tempering enthusiasm by keeping in mind what could go wrong.
Posted Using LeoFinance Beta
I've been a follower of the Cosmos blockchain for a couple of years now, mainly from watching the AltheaNet decentralized internet bandwidth marketplace develop. I really believe in IBC and I think that Cosmos is the hub where all spokes lead to other chains. I remember the hype leading up to the mainnet launch of Gravity DEX, but never really heard much AFTER, now, from what you said, it appears that the Cosmos-Ethereum Bridge isn't all it was cracked up to be, and Osmosis has taken the lead and isn't looking back. I look forward to buying OSMO tokens and staking for LP and regular staking rewards. That almost makes THORChain less appealing, if not for the interchangeability afforded to layer-1 native token swaps.
Posted Using LeoFinance Beta