Cosmos closer and closer to Ethereum; liquid staking arrives.
INTRODUCTION
It had to happen, sooner or later #Cosmos had to move to a second level, and that day has arrived. The #Stride blockchain (audited by CertiK and Oak Security ) now offers liquid staking on Cosmos, which will allow the use of tokens such as #JUNO, #OSMO and #ATOM (in a first phase) to generate income passively, without financial risks derived from impermanent Loss or derived from the payment of returns with inflationary native tokens that are useless and suffer continuous selling pressure, leading to a state of slow death. Stride provides liquidity to any asset deposited on its blockchain, obtaining returns both in participation and in #DeFi thanks to the interoperability of the entire Cosmos IBC ecosystem.
Liquid staking is a financial product evolved from DeFi, which allows conservative strategies with low returns, but above all to operate in a constant and productive way whatever happens with the market trend (if bitcoin goes up or bitcoin goes down). In Liquid Staking (from now on SL) you can distinguish several competitive advantages compared to other DeFi products, the 2 most relevant may be not to suffer waiting periods of 21 or 30 days since you request the tokens deposited in staking, until you receive them in your wallet. The SL eliminates that temporary and devastating barrier in bear markets, where you see how the token is continuously devalued and you cannot sell, since you do not have it in your wallet yet. The second advantage is that you can get more profitability through conventional staking, largely because the synthetic tokens that the Stride blockchain gives us when depositing the original native token, you can pair them with their namesake in pools that are prepared for this purpose, providing the pool with liquidity and speed to facilitate the trade of both tokens (in this case for example ATOM/stATOM) turning the synthetic token stATOM into a fully liquid token, thanks to the 1 ATOM:1 stATOM parity.
EDUCATIONAL NOTE
To better understand this financial model, you must understand that the stATOM tokens gain value over time, depending on the #APR offered by the staking of your token (ATOM), so they manage to balance the profitability obtained and do not turn ATOM into an inflationary token by a bad internal management of tokenomics by the Stride blockchain. That is, if the APR in the ATOM staking is maintained for a year at 15%, at the end of that period 1stATOM = 1.15 ATOM, therefore it is said that you do not generate dividends in the form of more ATOM as in the conventional staking, but your stATOM are gaining value, a change of concept derived from the crypto economy that you must learn.
PROS and CONS
The downside is that being at such an early stage, the returns obtained in the ATOM/stATOM pool are being paid to us with the native token of the blockchain, specifically with #STRD, which we still do not know the price, nor how much we are generating per day, The only thing that is certain is that it is an inflationary token by nature, since there will be a strong selling pressure on it as soon as we have a quoted price. Right now the only use it has is to pay benefits and be sold for stable currency and thus somehow preserve the profits obtained. Until this pool passes to the official version of osmosis, we will not be paid with a stronger token, specifically with the #OSMO token.
As a point in favor of this blockchain, it should be noted that a large number of coins are coming throughout the year to be used in liquid staking and to manage capital in pools without IL, all of them compatible with the Cosmos blockchain, such as stJUNO, stKAVA, stROSE, stEVMOS, stDYDX, etc...
On the other hand in only 4 days this ATOM/stATOM pool has beaten the record of accumulated #LTV in OSMOSIS, with $4,000,000 under management.
CONCLUSION
Now it is your turn to investigate a little more in depth and analyze the different options you have with ATOM and stATOM, both in Stride and COSMOS, to determine what strategy and actions to take that are favorable to your interests and management. These actions may include points such as:
领英推荐
If you withdraw Atom from conventional staking to use it in liquid staking.
If you buy stATOM directly with the Osmosis swap or in the Stride swap (one of them has an economic premium as time goes by).
If you want to continue qualify for future airdrops, where is better to be, in the conventional staking or the new liquid staking (be aware that Stride will have all the ATOM deposited in a single Smart Contract address, and most projects when launching an airdrop put a WILD CAP that disables the option to qualify for the airdrop by the high percentage of accumulated ATOM, giving you a great advantage in that distribution. In addition this type SC with so many tokens deposited put at risk the very financial viability of the project in question, because imagine for a moment the power of manipulation in the price of that token given by airdrop that Stride has if it receives millions of that new token, at the time that sells them all the price can go to 0).
If it is interesting, the 185% APR that the ATOM/stATOM pool pays against the 14 day timing that you must apply to make the withdrawal of the profits and deposited tokens. Keep in mind that you never earn that APR, your real annual ROI will be 25-30% if everything goes very well.
If you go long term with ATOM and you don't care if its price goes up or down in the short term, you must be able to clearly determine if the competitive advantage that SL offers you over conventional staking is relevant.
In short, to know if you are a short term speculator or a longer term investor, which option interests you more, I already have it clear and I have applied a couple of strategies to take advantage of this opportunity during the next 30 days applying compound interest.
LINKS OF INTEREST
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