Compounding Riches on the Cosmos Ecosystem: Insane Yields, Slick Dexes, Insider Strategies and Secret Research Resources Part 1
Compounding Riches on the Cosmos Ecosystem:
Insane Yields, Slick Dexes, Insider Strategies and Secret Research Resources Part 1
I recently took a hiatus on writing about the cosmos ecosystem because I wanted to focus on discussing some things going on in the pulse ecosystem before it launched. Hopefully you read some of my old articles on cosmos such as “Don’t go to the Moon, Go to the Cosmos with the Atom Token”, “The Four Dark Horses of the Cosmos Ecosystem” and “More Cosmos Tokens with Promise.” However, I never went far too in depth with the opportunities available to make money in the ecosystem. There are some interesting tradeoffs to be made in the cosmos ecosystem which I’ll explore more in depth.
DEXES
I haven’t gone too far in detail about dexes in my previous articles. However, there are a lot of fantastic yielding opportunities by pooling your coins alone with some high APY opportunities involved. As of recently, I’ve been frustrated with some of the Cefi regulations that are growing in the United States. I would even say the Defi space has been a little too tame in the ethereum ecosystem given how expensive ethereum transactions can be. The only Ethereum based defi protocols I’ve been using have been uniswap and Hex. However, other ecosystems are coming onboard with more cost effective opportunities for those that can’t afford to be whales.
Osmosis (OSMO)
Osmosis Dex is a great way to find IBC compatible cryptocurrencies to use. I would argue it is one of the best dexes out there. My Mentor DollarCostCrypto would argue that SpookySwap is the best dex in crypto but Osmosis is right up there. Even though Osmosis is beating Spooky Swap in terms of TVL, Spooky Swap simply has more competition in the Fantom Ecosystem. It is just a few features shy of being its equal. It can be a little slow to load the pools page at first but worth the wait.
First I want to discuss staking the OSMO coin. Just by staking Osmo alone, you can get a yield of 61% APY. It does not make sense to pool your coins in a pool with an APY less than that as you could be at risk of impermanent loss for pooling your tokens.
A cool feature about the Osmosis pooling system is the daily passive income in terms of OSMO. Once a day, which is one epoch in Osmo time, you are given Osmo in your wallet automatically. This occurs every day at 5PM UTC (1PM EST). What you choose to do with your daily reward is your choice.
The first decision you need to make is which pools you want to place your tokens in. There should be two questions you should ask, “what two tokens would I like to own more of?” and “Which pools have a yield greater than 61%?” I’ll list a series of pools I’ll give as suggestions based on my previous articles.
LUNA/OSMO (Pool #561, 71.39% APR)
ATOM/OSMO (Pool #1, 52.84% APR)
ATOM/JUNO (Pool #498, 62.78% APR)
JUNO/OSMO (Pool #497, 94.92% APR)
I recommended that everyone should have at least ATOM, OSMO, JUNO and LUNA staked in order to receive free airdrops in my article “The Four Dark Horses Coins of the Cosmos Ecosystem”. You’ll also notice that the ATOM/OSMO yield is below 61% There is a special feature called “Superfluid staking”, which allows the OSMO tokens that are in pools to be staked, providing additional yield. The additional yield includes an additional 15%, coming to a total of 68%.
Another option to consider pooling is the external incentived pools. What hell is this exactly? If you ever heard of dual yielding on Raydium, the concept is very similar. When you pool your tokens in an External Incentivized pool, not only do you earn daily rewards in terms of more OSMO, you also earn more of the token you pooled. If you ever get any free airdrops, you may want to consider putting some of your airdrops in an External Incentived Pool. You can see a list of External Incentive Pools at the bottom of the pools page.
A great feature about the osmosis pools is the ability to do single sided liquidity pooling. Rather than having to own both assets to add liquidity, you’ll be able to add a single asset on one side of the pool. The only weakness is that it can negatively impact the price.
JUNO SWAP
Here is the strange thing about JUNO swap, you currently get zero APY for pooling your assets on Juno Swap. It seems it is trying to flesh out an Osmo like DEX. As it currently stands, I would recommend staking your JUNO which can provide an APY of 100% rather than pooling your Juno. It is still in development, so keep your eyes peeled.
You’ll also notice there is some liquidity in their pools. The reason why is because there is an airdrop coming for those who provide liquidity to Junoswap.
CoinSwap
This is a dex that was created by the IRISnet Team. It doesn’t have a lot going for it. However, there are a few cool features to highlight. If for some reason you cannot get BNB in your region, like New York, you can swap your token at CoinSwap. In addition, if for some reason you are a yielding degenerate, they have pools that are as high as 276% APY.
Sifchain
For a while, Americans were banned from using this DEX. However, just popping right into the website, I was able to use the DEX with no problems at all. The operation of Sifchain is its ability to operate as an omnichain, or a bridge into the cosmos ecosystem with the Ethereum ecosystem.
If you look at the APY, some as high as 1700%. However, there is a nasty catch. As it stands, all coins must be pooled with the rowan token, the native coin of Sifchain. You must ask yourself, would I like to own more Rowan tokens in the long run? The risk for impermanent loss is a very real thing on sifchain.
A really cool feature about Sifdex is called Arbitrage opportunity. If you look at the Pools in the Sifchain dex, they will highlight the price differences between the price on sifchain and the prices highlighted by coinmarket cap. The dex operates using “Pegged” tokens to maintain interchain compatibility. It is within their best interest to keep the price gap closed.
Gravity Bridge DEX
Gravity Bridge DEX was supposed to be the uber apex cross chain to conquer all dexes. It even has a translucent nude man with slick 3d animation on the gravity dex home page. It had sponsored major crypto influencers and educators about this transcendent technology to revolutionize all of human civilization and beyond. Instead, it flopped. Osmosis kicked its ass. The project is basically getting axed in favor of the following dex.
Crescent DEX
Crescent DEX is the DEX that is replacing Gravity Bridge Dex. The simple reason that Osmosis had far better incentives than Osmosis and far better yielding opportunities than gravity dex. In fact the same people who developed the Gravity Bridge Dex developed Crescent DEX. As of writing this, this DEX is still very much in development but very much usable. This can be a huge opportunity for people looking for a new farm yielding opportunities. It is taking a lot of the lessons from Osmosis beating them in terms of yielding opportunities. Likewise, had you been an ATOM staker, you would have gotten some free crescent tokens.
At the moment, this is a two token system dex; Crescent (CRE) and bCrescent(bCRE). CRE is the token used for staking and bCRE is the liquid staked for every CRE staked. Basically bCRE is a pegged token against CRE.
Crescent DEX is a relatively new DEX with some large yielding opportunities. However, there are not a lot of pools available. However, the best yields will be the ones that include bCRE in their pools which provide additional yield. Here is current look at the moment as of writing what the yields are looking like:
CRE Staking: 49.2% APR
bCRE-CRE: 116.57%+24.6% APR
ATOM-/bCRE: 261.66%+24.6% APR
bCRE-UST: 362.75%+24.6% APR
ATOM-UST: 109.11% APR
LUNA-UST: 114.4%
LUNA-bCRE: 362.24%+24.6%
By looking at the yields, the most risk free of impermanent loss is CRE staking and the bCRE-CRE farms. Because bCRE is pegged against CRE, ideally there is no impermanent loss.
Magna Carta
At the moment, this project is still in the making. It is a DEX that will fork the Gravity Bridge DEX. Keep it on your radar.
Conclusion
At the moment, this is just a sneak peak in what is available in the cosmos ecosystem. I already slipped in some information about the available yields out there. However, I would say much of the information I have given so far is incomplete. Just wait until Part 2 arrives.