What is Osmosis? 🧪🤔
Osmosis is the premier decentralized exchange of the Cosmos ecosystem; whereas you can buy, sell, and provide liquidity to Cosmos ecosystem coins such as ATOM, OSMO, JUNO, EVMOS, SCRT, CRO, etc.
Prerequisites ✨
- Keplr wallet
- Some Osmosis (OSMO)
- The thirst for some juicy yield!
Adding Liquidity on Osmosis 💰
Getting the LP tokens
- Head over to app.osmosis.zone
- Pick a pool you want to add liquidity to
- Click on Add/Remove Liquidity
- When adding liquidity, you’re going to need 50% of both coins in the pool.
If you already have 50% of both coins, just enter in the equal amount of coins you want to LP
On the other hand, if you only have OSMO, click on the Auto-swap single asset checkbox for half of your OSMO to automatically be converted to the other LP coin. - After entering the LP amount, click on Add Liquidity.
- Approve the Keplr wallet transaction.
We now have our LP tokens. Now it’s time to stake it for some juicy yield!
Staking the LP tokens
- Back to the pool you’ve picked earlier, click on Start Earning
- Enter the amount of LP tokens you want to stake, or just press the MAX button
- Pick a bonding period (1/7/14 days)
The bonding period is the duration that you need to wait before you can gain back access to your LP-ed coins once you unstaked them. The longer the bonding period, the higher the yield you will be able to earn. - a. If you picked 1 day, 7 days, or 14 days without Superfluid staking, click on Bond, and confirm the Kepler wallet transaction.
b. If you picked 14 days with Superfluid staking, click on Next, pick a Validator (the lower the commission percentage, the better!), then click on Bond & Stake.
Your LP tokens are now staked, and you’re now earning some juicy yield!
NOTE: If you picked the 14 days option and the Superfluid stake option is available, keep it checked to maximize yield.
What is Superfluid staking? 🧪🧐
Superfluid staking is Osmosis’ feature whereas if enabled, you’re earning yield through providing liquidity, but you’re also earning through protocol staking. Which increases your yield by a good amount!
For more information concerning Superfluid staking, Osmosis has an article here.
Removing Liquidity on Osmosis 🤑
Unbonding the LP tokens
- Head over to app.osmosis.zone
- Pick the pool with your tokens that you want to unbond
- Scroll down to My Bondings, then click on Unbond all
- Approve the Keplr transaction
Your LP tokens are now in the process of unbonding, you will regain access to the LP tokens after the unbonding period (1/7/14 days).
Removing liquidity
Now it’s time to convert your LP tokens back to the ‘real’ tokens!
- Head over to app.osmosis.zone
- Pick the pool you want to remove liquidity in
- Click on Add/Remove Liquidity
- On the Remove Liquidity tab, select the percentage of LP tokens you want to remove
- Click on Remove Liquidity
- Confirm the Keplr wallet transaction
You now have re-claimed your LP tokens back to the ‘real’ tokens!
Where can I buy Osmosis (OSMO)? 🛒
Unfortunately, OSMO isn’t available to trade on reputable centralized exchanges.
If you want to buy OSMO, you first need to buy Cosmos(ATOM) on exchanges such as FTX and Binance, then exchange the ATOM for OSMO on the Osmosis DEX.
Video version 🎥
If you’re having trouble following through the guide, Osmosis has their own video guide here:
Final Thoughts 🗒
Staking is great and all that, but always make sure your funds are secure. To achieve this, we always recommend using a nice hardware wallet like a Ledger.
