Click a few buttons, get 18% more $OSMO rewards.
That’s superfluid staking in simple terms 🤯
But how does it work?
Is it really that easy?
That’s what this 🧵 is gonna be about!
1/x
That’s superfluid staking in simple terms 🤯
But how does it work?
Is it really that easy?
That’s what this 🧵 is gonna be about!
1/x
First off, it is that easy!
It takes just a few clicks to superfluid stake your LP’ed $OSMO and get additional rewards directly in your wallet at each epoch.
But there are caveats.
2/x
It takes just a few clicks to superfluid stake your LP’ed $OSMO and get additional rewards directly in your wallet at each epoch.
But there are caveats.
2/x
Let’s look at the $ATOM / $OSMO pool as an example.
You add $500 of each coin, $1,000 total.
You bond the $1,000 for 14 days.
You’re now earning the highest LP APR rewards level.
3/x
You add $500 of each coin, $1,000 total.
You bond the $1,000 for 14 days.
You’re now earning the highest LP APR rewards level.
3/x
To increase the APR, you can also superfluid stake the bonded $OSMO.
Temporarily, you’re limited to staking only 50% of the $OSMO.
But you will earn full staking rewards on those coins.
Why am I only getting 18% extra APR then?
4/x
Temporarily, you’re limited to staking only 50% of the $OSMO.
But you will earn full staking rewards on those coins.
Why am I only getting 18% extra APR then?
4/x
Let’s look deeper.
Current staking rate is 73%.
50% of the superfluid staked $OSMO is 25% of the total $ATOM and $OSMO in the pool.
APR listed is relative to that full amount.
73%*.25 = ~18%.
5/x
Current staking rate is 73%.
50% of the superfluid staked $OSMO is 25% of the total $ATOM and $OSMO in the pool.
APR listed is relative to that full amount.
73%*.25 = ~18%.
5/x
Ok, makes sense… but what about impermanent loss?
Won’t my LP’ed $OSMO fluctuate as price changes?
Yes.
6/x
Won’t my LP’ed $OSMO fluctuate as price changes?
Yes.
6/x
Your superfluid staked $OSMO will, too.
At each epoch, your $OSMO for the next day’s staking rewards is set based on the current split in the pool.
And due to this risk of IL, there will always be a limit, or buffer, to the amount of $OSMO that can be superfluid staked.
7/x
At each epoch, your $OSMO for the next day’s staking rewards is set based on the current split in the pool.
And due to this risk of IL, there will always be a limit, or buffer, to the amount of $OSMO that can be superfluid staked.
7/x
Now it’s 50%, later as much as 90%.
The 10% also acts as a buffer in case of slashing should a validator misbehave.
This is very rare.
8/x
The 10% also acts as a buffer in case of slashing should a validator misbehave.
This is very rare.
8/x
But keep in mind superfluid staking risks not just your $OSMO but also your $ATOM.
Technically you’re staking via the GAMM derivative, not actual $OSMO tokens, and GAMM includes your LP’ed $ATOM.
9/x
Technically you’re staking via the GAMM derivative, not actual $OSMO tokens, and GAMM includes your LP’ed $ATOM.
9/x
Be extra careful when choosing your validator.
You can only choose one for superfluid staking, so make sure they’re trustworthy.
They’ll also be voting for you as voting power doesn’t pass through like with normal staking.
10/x
You can only choose one for superfluid staking, so make sure they’re trustworthy.
They’ll also be voting for you as voting power doesn’t pass through like with normal staking.
10/x
IMPORTANT: You can’t redelegate superfluid staked $OSMO like normal staked $OSMO.
You have to do 14-day unbonding and bond again.
You won’t get staking rewards during this process, but you will get gradually decreasing LP rewards.
See this thread:
11/x
You have to do 14-day unbonding and bond again.
You won’t get staking rewards during this process, but you will get gradually decreasing LP rewards.
See this thread:
11/x
What about airdrops?
Time will tell as it’s up to each project.
I think many will because superfluid staking still helps secure the network.
But that’s just a guess.
Again, you’re technically not staking $OSMO, just the GAMM derivative.
12/x
Time will tell as it’s up to each project.
I think many will because superfluid staking still helps secure the network.
But that’s just a guess.
Again, you’re technically not staking $OSMO, just the GAMM derivative.
12/x
Overall, I’m psyched about this upgrade and already have superfluid staking set up in my $ATOM / $OSMO pool.
Right now, it’s limited to just that pool as superfluid staking is still in beta.
But the plan is to enable it in others in the future.
13/x
Right now, it’s limited to just that pool as superfluid staking is still in beta.
But the plan is to enable it in others in the future.
13/x
What about superfluid staking the non-$OSMO side of a pool?
That, too, is in the works.
Interfluid staking, they’re calling it.
14/x
That, too, is in the works.
Interfluid staking, they’re calling it.
14/x
Is superfluid staking another way to make it in the #cosmos ecosystem?
I’d say hell yes!
Here’s a thread on the technical aspects of superfluid staking:
15/x
I’d say hell yes!
Here’s a thread on the technical aspects of superfluid staking:
15/x
If you found this thread on $OSMO superfluid staking helpful, I’d love if you could help share it by retweeting the first tweet.
Let’s bring more people into the #cosmos ecosystem :)
Here’s the link:
16/16
Let’s bring more people into the #cosmos ecosystem :)
Here’s the link:
16/16
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