Join 78,750 users and earn money for participation
read.cash is a platform where you could earn money (total earned by users so far: $ 583,474.26).
You could get tips for writing articles and comments, which are paid in Bitcoin Cash (BCH) cryptocurrency,
which can be spent on the Internet or converted to your local money.
Takes one minute, no documents required
Exploring DEFI in the Cosmos Blockchain Ecosystem >> Osmosis AMM DEX
Even though, many Ethereum DEFI platforms have devised ways to connect to other blockchains like Binance Smart Chain and Matic, they have no plans to connect with Cosmos Blockchain, although they have plans to connect with Blockchains that are yet not functionally live like Cardano and Polkadot.
Cosmos Blockchain, despite being ignored, is home to many promising Blockchain projects. There is also a Cosmos Hub based DEFI platform there called Osmosis which is an Atomatic Market Maker (AMM) platform, where one can swap tokens of popular projects that are built inside the Cosmos Blockchain - AKT, ION, DVPN, IRIS, XPRT, CRO and Regan.
All these project channels are interconnected with each other, thanks to the mechanics of the Inter-blockchain Communication (IBC) protocol which enabled me to send my ATOM tokens to the Osmosis platform using the IBC transfer feature in my keplr wallet.
Blockchain projects inside Cosmos that can be accessed through Keplr wallet Keplr wallet app
AMM platforms like Osmosis, get liquidity for swaps with the liquidity provided by liquidity providers(LPs) to token pools. In Osmosis, there are token pools where a token is paired with either the Atom or Osmo token (native token of the Osmosis project), to which users can provide liquidity.
For instance, for the Akash Network holders, there are two token pools - AKT/ATOM and AKT/OSMO. If Akash token holders want to provide liquidity they can do so by depositing coins in any of those 2 pools.
They have to deposit AKT with the corresponding pair of the particular pool to be a liquidity provider. In return for providing liquidity they get LP rewards with OSMO tokens.
Keplr wallet can connect to different Cosmos projects (options come in the dropdown
Keplr wallet is a must have wallet for users who want to participate in the Cosmos Blockchain ecosystem, it’s like what Metamask wallet is to the Ethereum Blockchain.
The Kepl wallet is connected with all the major projects inside the Cosmos Ecosystem. One can send tokens from one project channel to the other project channel of the Cosmos Ecosystem by using the IBC transfer feature in the Kepl wallet.
In my case I had to transfer Atom tokens from the Cosmos channel to the Osmosis channel in the Keplr wallet. Then I had to transfer AKT tokens from the Akash Network Channel to the Osmosis channel in the Kepl wallet.
I needed to add the Osmosis IBC channel inputting the Destination chain and Chain ID details.
I could perform no swap activities in the Osmosis protocol yet as I needed to have OSMO tokens to pay fees for the swaps. I reckon part of these fees go to compensate liquidity providers of that particular pool too.
As expected the APR for LP providers is high now to attract them to the Osmosis platform and encourage them to stake and be Liquidity providers.
All in all, it was an interesting learning experience, where I learnt a bit on how AMM DEFI platforms work.