Osmosis

Cosmos AMM

The Cosmos ecosystem has developed into a rapid interoperability protocol for blockchain networks. These blockchains are built with Tendermint BFT and IBC.

There will be thousands of blockchains.

The largest network of blockchains will be an interoperable network leverage IBC in Cosmos and XCM in Polkadot.

The benefits of osmosis are very fast confirmation times and low fees which translates to a great user experience.

As the network has near instant finally it also accelerates the ability for markets to form given the velocity of the change of the markets…

ATOM and OSMO pool 1 has an APR of ~200% with a 14 day unbonding period, ~195% with a 7 day unbonding period and ~165% with a one day unbonding period.

The APR is variable but generates a residual income of OSMO which can then be redeposited to the pool. The only caveat is each time you bond that sets a net new bonded position which will eventually have to be rebounded one by one versus collectively across all bonded positions.

So assuming a $100K of liquidity deposited in initial investment, $50K in ATOM and $50K in OSMO. That will generate around 10-18% a month or 10K to 18K at the current APR. The price or OSMO would also affect the amount.

The ability to transfer tokens in and out of the Cosmos blockchain leverages IBC.

Tokens get deposited via IBC from the Cosmos to the Osmosis Blockchain.

Tokens are created on one chain then they can be deposited into another chain leveraged as liquidity then transferred back to the Cosmos chain. Osmosis is one of the first applications of this IBC technology which is naturally an exchange.

Crypto has evolved over the years from a global payment system born native to the internet, to a blockchain platform for anything you can dream up to a network of interconnected application specific blockchains.

Osmosis kind of creates a eye brow raising moment when you first do a swap, deposit assets into a pool via IBC and see the amount increase.