Osmosis DeFi platform - LBI proposal

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Intro

After SSUK's rant last time, I've decided to kick my lazy ass and propose something for LBI project.
Enough being on the sideline doing nothing except watching how nicely LBI is growing !
That's what I told myself and I was decided to act ! Well that was 19 days ago :D
It actually took me a whole week to start so I've done all the work and screenshots a week ago. And another week to find the motivation/time to write this article.

Anyway the ball is finally rolling and it's now on your hands to decide if we keep it rolling with within LBI project or we just abandon the idea.
I could have dropped the idea with few words but let's make it a walkthrough step-by-step, it might help anyone else who wants to give a try to the platform we are going to talk about.
The objective would be to grow some additional income stream outside of HIVE ecosystem and make LBI a tiny bit less Leo Backed ;)

DeFi on Cosmos

Today we are going through Osmosis platform which is part of Cosmos (ATOM) ecosystem.
Osmosis is a Decentralised Exchange where you can trade tokens part of Cosmos ecosystem and become a liquidity provider to earn some rewards.
New tokens are added from time to time and with them new pools are addedd too.
All the pools are paying rewards in OSMO, the native token of Osmosis platform.

osmopoolsincentivized.PNG

On top of that some pools are incentivised and therefore pay additional rewards, not in OSMO this time but in the token you pooled with.

osmopoolsincentivizedexternal.PNG

Let's start farming

First thing was to create a wallet for LBI, so I've created a Kepler wallet account.
Because it's the best ? no idea, but this is the one I'm using for my own personal finance activities on Cosmos :D
I've also made an initial deposit on it directly from my Kepler wallet.
And you know what ? I paid 0 in transaction fees because I sent OSMO from Osmosis blockchain to Osmosis blockchain !
The beauty of this platform is going even further, all transaction fees are actually waived at the moment.
It means that any transaction of swapping tokens, pooling, staking in farms, un-staking and un-pooling are actually free of charge.
Just keep in mind there is still a swap fee to be paid when you swap tokens (0.2%-0.3% depending on the pair).

So here is LBI wallet and its initial funding.
initialtransfer.PNG LBIinitialasset.PNG

And how it looks in-dapp

LBIinitialassetosmosis.PNG

I've unilaterally decided to LP in JUNO-OSMO pool for 2 reasons:

  • The rewards APR was quite high (Ape mentality)
  • There was additional incentizived rewards paid in JUNO (Ape mentality)

firstpool.PNG
firstpoolincentive.PNG

We are currently owning 15 OSMO and 0 JUNO so let's swap half of our OSMO first.
Transaction fee ? Zero !
swap.PNG
swapfees.PNG

Once the transaction is validated (usually takes a few seconds), second step is to pool our 2 tokens together.
OSMO-JUNO pool is symmetric with 50% of each token needed.
Transaction fee ? Zero !

addLP.PNG

As in other DeFi platforms, becoming a liquidity provider allows us to get rewarded by a part of the swapping fees of this pair only.
But we want MOAR, we want the incentive of being a farm staker and the nice APR going with it.
Next step is then to stake in OSMO-JUNO farm and there's a twist here !
You have 3 different staking options giving 3 different APR for your stake.
This is called bonding and it will essentially get your funds stuck for a period of time you have chosen.

stakefarm.PNG

So to make it extremely clear and simple, you can choose to stake/bond your LP for 1, 7 or 14 days and obviously the longer the bonding period, the better the APR.
This is actually more an UN-bonding period than a bonding one, let me explain.
Even if you decide to bond for 1 day, you won't have to repeat this action every single day and renew your bonding.
Your stake will stay staked until you decide to unbond it and in that case it will take 1 day to be accessible again.
Same process goes with 7 and 14 days.
What about the rewards when you're unbonding you are asking ?
1 day bonding -> unbonding on day X -> day X rewards are not given -> day X+1 you can play with your funds again.
Now for 7 days and 14 days bonding, same principles are applied but in terms or rewards it goes as follow.

  • 14 days : You will get 7-day bonding APR from day X to day X+6 THEN 1-day bonding APR from day X+7 to day X+13 THEN 0 on the last day before you get your hand back on your funds.
  • 7 days : You will get 1-day bonding APR from day X to day X+6 and 0 on the last day before you get your hand back on your funds.

If you read till here you know I chose the 14-day bonding period (Ape I told you) :)
Transaction fee ? Zero again !

currentbondings.PNG

Conclusion

That's it finally, this is my proposal for LBI project.
As I'm already managing my funds on this platform everyday, I'll be happy to spend a bit of time on top in order to manage LBI funds.
Are you willing to allocate some LBI funds to some risky DeFi activities though ? And how much would you allocate ?
I'm the sole owner of LBI Kepler wallet keys at the moment but I'll be happy to share it with SSUK. He then would have total access and control over the funds in case I go berserk :)

I'm sure I forgot to mention some details, feel free to ask any question, I will be happy to share more in the comments.

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10 comments
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Ah this looks like a pretty good proposal and if SSUK gives the ok on it, it looks good. In a way he can't be everywhere but I am sure he will keep an eye on the pools you choose.

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I'm a little late so I didn't vote but that's a good idea, since there is not too much of the fund in it, having some investments in several places is always good !

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Thanks for the LATE support !
But not to worry the proposition passed so I will do my best to make some money for us ;)

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