Why is Osmosis Doing So Well, and Will it Last?

in LeoFinance3 years ago

Osmosis is a DEFI app built on Cosmos and offers the usual suite of DEFI related functionality - swaps, liquidity pools and IDOs (or whatever label you want to give them these days!)

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Osmosis has only been around for three months, and after a bit of a slow start, it has seen a recent surge in popularity, being one of the fastest growing platforms of last week in terms of Total Value Locked.

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Users are rewarded in OSMO for providing liquidity and returns for doing so are pretty decent - ranging from 100 to 200% APR.

Osmosis also has a governance function, staking allows for users to vote on proposals which steer the direction the app takes - such as what shape future liquidity pools will take and how they should be incentivised.

Osmosis currently offers around 30 pools you can stake too, but only offers a limited number of tokens to swap and pool, those built on Cosmos, such as AKT and ATOM (in fact the only two I recognise), and pools are different combinations of these limited number of tokens, although there are plans to bring in a wider variety of pooling options, one such proposal being for a UST pool.

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Another interesting feature of Osmosis is that you get three bonding time period options - one, seven or fourteen days, with a higher return the longer you lock up your tokens in the pools.

If you choose to stake Osmosis (OSMO) the lock up time there is three weeks, for a 180% return at time of writing.

Recent Price Action

The Osmosis price had been doing very nicely recently....

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And no doubt this is synergistic with the rise of the ATOM price...

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But why is Osmosis doing so well...?

I guess it ultimately comes down to the fact that Osmosis is currently offering better consistent APR returns than many other platforms - and there's promise of more to come....

There is a current proposal to launch a UST pool, and stable pools are popular, AND UST is an increasingly popular choice of stable coin.

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And Osmosis has the capacity to launch IDOs - there's a rumour in Discord that you'll need 100 ATOM to be staked to benefit from future airdrops released via Osmosis - which might help explain the recent ATOM price increase, and an increase in the ATOM price is good for Osmosis as ATOM-OSMO is one of the largest pools on Osmosis.

There is also further synergy with development on Atom - according to the guy who calls himself Coin Bureau on YouTube there's a lot of consensus between Cosmos projects, a will to make everything work together, and a planned integration with BTC for early 2022

Osmosis is also very functional - I use the Kepler wallet, a browser wallet which is very easy to use, and transaction fees are very low, only a few cents, and fast, only a few seconds - and it's been 100% reliable after a few initial teething problems with stuck transactions.

Users might also be attracted to the simplicity - there's an appeal about only having a few pools to choose from and three options for time-lock staking, very intuitive, very simple.

The token release schedule is also quite appealing - it drops by a third every year until it reaches a max supply of one billion...

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Source here.

And then there's Governance - OSMO isn't just another DEFI shitcoin - it allows you to vote on the future direction of the platform.

FINALLY, apparently FRONT RUNNING ISN'T POSSIBLE! I don't understand the tech behind it, but this is from the guy from Coin Bureau again!

Osmosis - Final Thoughts...

I think I've just convinced myself to stop selling the OSMO I farm for a while and stake some more!

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ive had a small bag of atom for a while, only 25 I think, but nice to see it go up. I tried to send a little bit over to keplr recently but it never turned up. Not sure what happened there, but Id like to give the osmosis platform a try at some point

25 ATOM isn't too shabby at these prices!

I bought some a while back to pool with some AKT I had.

I can't help you with the transfer, I think I've only ever sent it in the other direction which worked fine.

Did you select the right chain? Is the only thing I can think of, when sending?

ah ok. thanks for getting back! Which chain is it supposed to be? I'll give it another crack sometime soon...

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Do you know what's their schedule for the IDO component?

P.S.: Did you discover what was wrong with the post yesterday (this one which produced an error when posting)?

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Not sure - but if you click on stake there's an interesting section called 'Keplr labs' which might be IDOs upcoming - yet to check it out.

Still no idea on the post thing, put something in tech support but no banana as yet.

I made a note to have a look at these Keplr Labs. :) I saw them too, but haven't checked them out.

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It's worth a look, IMO!