The most profitable strategy in the #Cosmos Ecosystem.⚛️
A🧵!
A🧵!
In this 🧵I will explain if LP’ing or staking is more profitable on Osmosis.
The calculation isn't as simple as you think.
I use $ATOM / $OSMO LP pool as an example on how to calculate these strategies.
You can use these calculations/tips on any LP pool.
The calculation isn't as simple as you think.
I use $ATOM / $OSMO LP pool as an example on how to calculate these strategies.
You can use these calculations/tips on any LP pool.
LP $ATOM / $OSMO is currently 51% APR + 15% APR Superfluid staking. Total LP APR= 66%.
Staking $ATOM is currently 16.7% APR
Staking $OSMO is currently 61.5% APR
Total staking APR is 78.2% / 2 = 34.1%
LP APR's are more profitable here.
But there is more to this calculation!
Staking $ATOM is currently 16.7% APR
Staking $OSMO is currently 61.5% APR
Total staking APR is 78.2% / 2 = 34.1%
LP APR's are more profitable here.
But there is more to this calculation!
With LP'ing you get extra incentives. 📈
With Staking you don't. 📉 (Except Airdrops)
With Staking you don't. 📉 (Except Airdrops)
Extra LP'ing incentives💵
🔹Transaction fees from your LP $ATOM / $OSMO.
If there is a spike in trading volume in that specific pool, you get more rewards.
Volume has been growing rapidly on #osmosis .
I think this will continue in the long term future. 📈
🔹Transaction fees from your LP $ATOM / $OSMO.
If there is a spike in trading volume in that specific pool, you get more rewards.
Volume has been growing rapidly on #osmosis .
I think this will continue in the long term future. 📈
Extra LP'ing incentives💵
🔹Bonus Bonding Rewards
Some LP's have enabled this feature.
These rewards contribute to a lot of additional APR!
You get these rewards once every day.🌇
🔹Bonus Bonding Rewards
Some LP's have enabled this feature.
These rewards contribute to a lot of additional APR!
You get these rewards once every day.🌇
Extra LP'ing incentives💵
🔹Superfluid Staking
SFS is delegating your underlying $OSMO from SFS enabled pools to validators.
Currently only 1/4 of your LPed value in LP $ATOM / $OSMO is staked.
Native staking rate $OSMO is 62%, so that is effectively an additional 15-16%.
🔹Superfluid Staking
SFS is delegating your underlying $OSMO from SFS enabled pools to validators.
Currently only 1/4 of your LPed value in LP $ATOM / $OSMO is staked.
Native staking rate $OSMO is 62%, so that is effectively an additional 15-16%.
Future Extra LP'ing incentives💵
🔹Interchain Staking
Both $OSMO and $ATOM can be staked at the same time in an LP when Interchain staking is enabled in the future.
🔹Interchain Staking
Both $OSMO and $ATOM can be staked at the same time in an LP when Interchain staking is enabled in the future.
How much additional APR the LP incentives exactly generate is calculated here:
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#gid=9186761" target="_blank" rel="noopener" onclick="event.stopPropagation()">docs.google.com
Impermanent Loss is one downside of LP'ing.😐
Impermanent Loss is neccesary in order to enjoy all those extra LP rewards.
Educuate yourself on this topic!
If you are not familiar with Impermanent Loss, this link explains it very clearly.
academy.binance.com
Impermanent Loss is neccesary in order to enjoy all those extra LP rewards.
Educuate yourself on this topic!
If you are not familiar with Impermanent Loss, this link explains it very clearly.
academy.binance.com
My conclusion!🥳
LP'ing generates more rewards than staking alone, but carries more risk due to Impermanent Loss.💵
Personally I have 90% of my portfolio in Osmosis LP's.
Stake 10% of your portfolio in $ATOM, $OSMO and $JUNO in order to be eligible for most airdrops!🪂
LP'ing generates more rewards than staking alone, but carries more risk due to Impermanent Loss.💵
Personally I have 90% of my portfolio in Osmosis LP's.
Stake 10% of your portfolio in $ATOM, $OSMO and $JUNO in order to be eligible for most airdrops!🪂
You can find out which Osmosis LP's I use and how much percentage I deposit in each one in this tweet.
Hope this 🧵helped you!😁
🔹Like and RT the first tweet of this thread to show your support!
Let's further educate our beautiful #Cosmos community and prosper together⚛️
🔹Like and RT the first tweet of this thread to show your support!
Let's further educate our beautiful #Cosmos community and prosper together⚛️
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