🧪 What is Osmosis?
Osmosis is an automated market maker (AMM) protocol built for liquidity providers. Therefore, it should be governed and owned by liquidity providers. Over time, the largest allocation of OSMO tokens is set aside for liquidity incentives to reward liquidity providers for their contributions and give them an ownership stake in the future of the protocol.
Osmosis aims to be the most innovative AMM across all ecosystems. Osmosis has many planned features in development to improve LP incentives beyond what current AMMs have been able to accomplish.
Providing liquidity (called “LPing”) is the process of depositing assets into an AMM pool. AMMs are decentralized finance protocols that allow for the swapping of assets without a centralized intermediary. Just as trading firms make traditional markets, AMMs establish prices and facilitate trades using permissionless liquidity pools into which users can deposit assets.
💰 What is Staking ?
Staking is the process of locking up a digital asset to provide economic security for a public blockchain. You have the superpower to contribute to the security, governance and it grants you the right to vote on proposals and make decisions on the future of the network.
When the staking transaction is complete, rewards will start to be generated immediately. At any time, stakers can send a transaction to claim their accumulated rewards.
Staking rewards are generated and distributed to staked holders in two ways:
Transaction fees collected on the network are distributed to staked holders.
The total supply of the token is inflated to reward stakers.
⚠️ Holders that do not stake do not receive rewards, meaning their token get diluted over time.
Staking is not risk-free. If a validator has downtime or underperforms, a percentage of tokens delegated to them may be forfeited. To mitigate these risks, it is recommended that holders delegate to multiple validators.
📈How to stake $OSMO ?
Using Keplr wallet
Step 1: Download Keplr
Download Keplr for Google chrome (only available here for now)
Step 2: Wallet setup
Create or import your existing wallet by following the steps
Step 3: Get tokens
Get into your account any of the following tokens : $ATOM, $AKT, $DVPN, $IRIS, $CRO or $XPRT. these tokens will be used to be swapped into $OSMO
Go to https://app.osmosis.zone/ and click on “Connect Wallet” on the bottom of the menu bar and “Approve”
Step 4: Swap
On the right side of “Trade” section, swap your desired token into $OSMO and confirm by clicking on “Swap”
Step 5: Delegate
Go to https://wallet.keplr.app/#/osmosis/stake and look for “Imperator.co” on the list then click on “Manage”. On the coming pop-up, click on “Delegate”
Select the amount you want to stake and then click on “Delegate”
You will receive two notifications:
Congratulations, you have now staked your $OSMO! 👏
Withdrawing your rewards is simple as child’s play:simply go to https://wallet.keplr.app/#/osmosis/stake and click on the top right corner on “Claim Reward x OSMO”
A pop-up will appear, click on “Approve” and it’s done!