Everything you should know about osmosis|Especially how to Use Osmosis.zone
What is osmosis?
Osmosis is a proof-of-stake blockchain that serves as the Cosmos ecosystem’s automated market maker (AMM) protocol. AMMs are digital asset pools that are administered by a smart contract and used to facilitate decentralized trading. Liquidity pools and smart contracts take the place of the order book system; liquidity providers deposit their assets in the pool and receive fees when users trade in it.
Unlike other smart contract-based AMMs, Osmosis is created with the Cosmos SDK, which is open source. Using Osmosis’ governance mechanisms and interoperable building toolkit, developers will be able to design and deploy AMMs in the Cosmos ecosystem, as well as innovate in liquidity pools. OSMO is Osmosis’ native token, which is intended for governance and transaction fees.
The Cosmos ecosystem aspires to accomplish interoperability among Tendermint-based chains. To do this, Tendermint-based blockchains were linked using the Inter-Blockchain Communication Framework (IBC), a protocol for transmitting messages between separate distributed ledgers. Users of Osmosis can offer liquidity, trade, or stake the native tokens of blockchains that use the Tendermint IBC, with Osmosis acting as a liquidity gateway into the Cosmos ecosystem by allowing IBC deposits and withdrawals through a decentralized interface.
Basic features of osmosis?
1-Trade( Buying of cosmos IBC Tokens by Swap)
2-Pools ( Providing Liquidity in Incentivized Pools)
3-Assets ( My Osmosis Assets )
4-Stake ( Staking tokens with the help of Keplr )
5-vote ( voting in governance Purposol in keplr)
6-Stats ( Stats about pools, token price, Charts, token volume )
Trade
Osmosis has launched the world’s first native cross-chain IBC automated market maker (AMM) protocol in the Cosmos Network ecosystem. You can simply buy any tokens that are built on cosmos SDK.
How to Swap Buy Tokens in osmosis?
Step 1- To buy any token in osmosis you need some tokens to Swap buy with it. So the first thing to do is get some tokens in your keplr wallet (You can simply buy them in some big exchanges:-’Binance, Kucoin, coinbase’ and transfer them to keplr wallet) and connect keplr to the osmosis.zone.
( In the below picture you can see that we already have some AKT in our Keplr wallet).
Assets
Step 2- Connect your keplr wallet to the osmosis.zone website and go to assets section, and deposit the token you have in keplr wallet to osmosis.
(In the below picture you can see we are depositing 2 AKT and after that approve the transaction popup of keplr wallet).
Step 3- Ok, now have successfully added AKT as Assets in the osmosis.zone. Go-to trade and choose the token you have in the asset in FROM section and the token you need to buy in the TO section.
( In the below picture you can see we are using AKT to buy DSM, So we have selected AKT in FROM section and DSM in the TO section. After inputting all the details, click on SWAP and approve the transaction pop-up of keplr wallet)
Congrats, You have successfully swapped your AKT to buy DSM. You can see your DSM balance in ASSETS Section.
Pools
AMMs are digital asset pools that are administered by a smart contract and used to facilitate decentralized trading. Liquidity pools and smart contracts take the place of the order book system, liquidity providers deposit their assets in the pool and receive fees when users trade in it.
Liquidity Mining: Bond liquidity to various minimum unbonding periods to earn OSMO liquidity reward and swap fees
Pool #1 ATOM/OSMO
1- a day unbonding(APR 36.45%
2- 7 days unbonding( APR 58.33%)
3- 14 days unbonding(APR 72.91% +18%)
Stake
You can easily stake your newly bought asset from osmosis, by using the keplr stake mechanism. Simply go-to the stake section in the osmosis.zone and it will automatically redirect you to keplr website.
( In the below picture you can see we are seeing active validators of OSMO, click on the manage button present in front of the validator and then choose the amount of token you want to stake and delegate as simple as that)
Vote
As we all know voting is the most important part of a decentralized community. You can also vote from the osmosis.zone using the keplr website.
( Go-to vote in osmosis and it will redirect you to keplr website voting page, Just scroll through the active purposal and read it before casting your vote.)
Stats
In stats, you can check all the data( price, volume, liquidity, APR%, Dominance)
Currently, osmosis is consist of 41 tokens & 648 Pools
The top 3 tokens and pools are
Tokens: 1-osmosis 2-cosmos 3-TerraUST
Polls: 1-ATOM/OSMO 2-UST/OSMO 3-LUNA/UST
Three critical components that are included in the Osmosis decentralized exchange:
Self-governing liquidity pools: liquidity pools (LPs) is totally customizable within governance. Nothing in the basic structure of Osmosis’ AMMs is hardcoded, according to the Osmosis team. All pool settings, including curve algorithms, TWAP calculations, swap costs, token rates, reward incentives, and more, are voted on by LP providers.
Superfluid staking: Users can stake their liquidity shares to validators on the chains of any two supported coins they deposit into an Osmosis liquidity pool. As a result, the deposited asset will not only earn a share of the fees from the liquidity pool’s swap transactions but will also earn rewards for assisting in the chain’s security, allowing users to provide liquidity to the Osmosis AMM while also participating in the native ecosystems of the tokens they hold by staking.
The LP tokens in an ATOM/OSMO pool, for example, can safeguard both the Osmosis and Akash networks.
Also, currently, only #1 pool ATOM/OSMO supports the Superfluid Staking mechanism. In which you can earn about 78% + an additional 19% of staking APY.
MEV resistance: At its foundation, Osmosis was designed with MEV (Maximal Extractable Value) resistance in mind, and it contains methods to assist reduce MEV.
Why Smartnodes?
⚛️We are highly active in the cosmos and lend support where we can. We are community-driven. Smartnodes validator actively Votes on proposals to help ensure proper governance.
⚛️The Infrastructure used by Smartnodes is only the Best of the Best with 10 Layers of security in place to protect your assets.
⚛️Smartnodes Validator offers 100% Fully refunded Slash and double sign protection.
⚛️ Smartnodes’s commission is only 5% commission on profits, which is below the Cosmos validator average of 12.5%. You can easily calculate your staking rewards by visiting our website:-Smartnodes.one
