A week from now, I will be able to achieve my LP goal for my AKT-ATOM pool in Osmosis. I've been building it for 2 weeks now and it will take one more week to finally get into the status that I wanted.
Now, since I moved a substantial amount of my AKT & ATOM holdings from Cosmos Hub & Akash Network into the Osmosis platform, I wanted to re-build those back in place as they were before I ventured into Osmosis. The venture has been very fruitful which grew my Osmosis LP holdings by 12.95% in a period of 2 weeks. One more week then it would probably grow by another 7%-8% (it's just an estimate) since I'm compounding my LP incentives every single day back to my AKT-ATOM pool (#4). I'm doing it at the expense of my OSMO rewards.
The LP incentives are much more rewarding than the current on-chain staking rewards for AKT (around 50%-60% APY) & ATOM (around 9%-10% APY).
So, after achieving my AKT-ATOM LP goal then what's next?
I'm thinking of 2 options that I would likely implement after a week from now:
- stake OSMO tokens directly to the chain
- convert my OSMO LP incentives into ATOM/AKT to be stake directly on-chain
Depending on the price of OSMO in the coming days then I will base my strategy on there.
Here's the scenario, if OSMO keeps falling in terms of price then the best option for me is to stake them directly on-chain. Since I don't want to be bothered by the price action of OSMO, the logical strategy is to stake them for the 500% APY. I hate pairing OSMO with any of the Cosmos Hub coins and be subjected to "impermanent loss" and jeopardize the other coin in the process.
By staking OSMO directly to the chain for 500% APY, I will be able to grow my OSMO coin quantity consistently until the price appreciates.
That's the cool thing about OSMO or Osmosis, it's a blockchain by itself that secures and governs the Osmosis Defi platform. Users of Osmosis will have an option to LP their OSMO tokens together with other Cosmos Hub coins or simply stake them directly into the chain and earn from the staking rewards in the form of new OSMO coins. At 500% APY, staking on-chain is as good as LPing on its Defi platform.
The other strategy is if the price of OSMO starts to climb back to its previous high price of $5-$7. In this case, I will be swapping them into either ATOM and or AKT to re-build my ATOM & AKT on-chain stakes.
When I first heard about Osmosis, I have also began preparing some liquid coins like ATOM, AKT, and DVPN in the expense of my daily compounding rewards. I also unbonded a portion of my AKT & ATOM stakes to be LPed in Osmosis. I did it to take advantage on the super-high APY on Osmosis pools. It paid out really well but I sacrificed the growth of my ATOM-AKT-DVPN on-chain stakes for more than month as I was preparing for Osmosis within that period.
By the time (a week from now) that I'm satisfied with my position in the LP pools that I'm currently participating in (AKT-ATOM, AKT-OSMO, & DVPN-OSMO), I believe it will be about time to divert my LP incentives back to my on-chain stakes.
Well, I hope that the price of OSMO will start to pick-up after the launch of Gravity Dex. There has been talks and or assumptions that OSMO tokens are being converted into ATOMs and other Cosmos Hub coins in preparation for the Gravity Dex.
Whatever I do in a week from now, I guess both strategy will work equally good since I do believe that OSMO and other Cosmos Hub coins are worthy to accumulate and hold for the next years ahead!
My journey to the world of crypto.
NFA: Not Financial Advice!
