WHAT IS SUPERFLUID STAKING GOING TO LOOK LIKE ON OSMOSIS? BASICS EXPLAINED HERE!
Hi today I'm going to be explaining what I know about superfluid staking! while also looking at possibility's of how it will be implemented!
Lets start with quickly covering $osmo and osmosis!
Osmosis is an AMM(automated market maker) and the 1st decentralized exchange(DEX) in the cosmos ecosystem, 100% quadratic drop to $atom holders with a whale cap at 50k $atom, this is what makes it completely decentralized there was no public/private sales.
$osmo is the native token to the osmosis-hub, which is a cosmos-sdk built blockchain with IBC (inter-blockchain communications) enabled since mainnet. you can provide liquidity to weighted pools in return for rewards which are paid direct to your assets in osmosis, you can also stake your osmosis to the network and earn rewards as well, with APR sitting around 156% and the pools are a majority all above 100–150% APR. yes the old saying early bird catches the worm comes to mind here. I recommend checking out the site https://app.osmosis.zone/
Now lets dive into superfluid staking, to put this as simple as i can what superfluiding staking is for example:
I put $1,000 into a atom/osmo liquidity pool weighted at 50%/50% so that would be $500 of each token. you will be able to earn the full APR for that pool with your tokens bonded to the pool, but with superfluid staking you will be able to stake the 50% of osmo in the pool to a validator. so you are now earning staking rewards and liquidity rewards but all through the same pool.
so again for example just say both APRs were 100% to keep it simple, you have your $1000 in the pool and superfluid staking.
you will receive daily rewards at 100% of the full APR in the LP which would be 0.27% daily so $2.7 with $1000. but you also get 50% superfluid staking the $osmo at 100% APR so $1.35 for the $500 worth of $osmo in the pool.so you are now receiving a total of $4.05 a day for $1000 in the pool. Winner!
This is a massive feature coming and nothing out there offers this type of yielding from my knowledge. heres abit of an early alpha leak as well. you have the $juno/$osmo pool currently earning triple rewards: swap fees/$osmo rewards and $juno rewards so if there are more pools like this in the future you will be earning LP rewards/50% superfluid staking rewards/swap fees/external rewards. there you go a chance of earning quadruple rewards from 1 pool.
I hope this gives people an early understanding to what the basics of superfluid staking.
Now on to the part with how it could be implemented, this is speculation and just my thinking but as staking to the network has a 14day unbonding period it would only make sense to incentivize the 14day liquidity pool lock up period to earn the superfluid staking, trying to keep this on par with staking direct to the network bonding periods, it would also be insuring that if the staked rate fell there is not such a worry to network security as the superfluid staking tokens will also be securing the network with a min 14 day unbonding period.
i hope you enjoyed this read and learnt roughly how superfluid staking will be on osmosis, I will bring out another update on osmosis in general soon.
check these out to keep yourself update
https://t.me/osmosis_chat TELEGRAM
https://twitter.com/osmosiszone?s=20 TWITTER
thanks again
cryptodanvans
