Cosmos is described as an Internet of Blockchains. The main purpose is to enable the communication between different blockchains. The link between all the blockchain network zones is the Cosmos Hub, where main tokens are ATOMs and PHOTONs. ATOMS acts as the staking and governance coin, whereas Photon is needed to pay for transaction fees. Cosmos is using the Tendermint consensus, which is a proof-of-stake algorithm. Here are the primary Cosmos based blockchain such BNB, Thorchain, Cronos. There are over 263 other cosmos based blockchains according to cosmos.network/ecosystem/apps. Cosmos use Tendermint consensus mechanism. Cosmos blockchain is designed based on future is going to multi-chain. Where it allows for multiple chains can be linked and individual Cosmos blockchains can be linked using Inter Blockchain Communication (IBC) system. Cosmos is built with Scalability as a priority, meaning substantially more transactions can be processed a second. It is under assumption that all blockchains will need its own blockchain. Demand driver for Atom is all Cosmos based upcoming chain as airdrops are afforded as ATOM tokens and staking of ATOM. According to stakingrewards site, current Atom staking rewards is 18% per year.
What is Osmosis?
Osmosis is primary Cosmos based DEX. Osmosis is an advanced automated market maker (AMM) protocol that allows developers to build customized AMMs with sovereign liquidity pools. Built using the Cosmos SDK, Osmosis utilizes Inter-Blockchain Communication (IBC) to enable cross-chain transactions. Osmosis allows users to launch liquidity pools with unique parameters, like bonding curves and multi-weighted asset pools.
AMM pools are permission less, meaning a user can make a pool for any asset. In Osmosis, pool creators are able to customize the transaction fees and exit fees paid by liquidity providers when withdrawing assets from the pool.
Buying Bitcoin without Fees
Use Robinhood Crypto account to buy Bitcoin without any fees from Robinhood. However, Robinhood has a small buy spread when you buy Bitcoin. As of shooting this video, Bitcoin is at around $19040. The buy price on Robinhood is $19100. A spread of $50 for 1 entire bitcoin. Robinhood provides buying Bitcoin and many other cryptocurrencies such as Solana (SOL), Polygon(MATIC), Shiba Inu (SHIB), Ethereum Classic(ETC), Uniswap(UNI), Chainlink(LINK), Compound(COMP), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), Avalaunche (AVAX), Litecoin (LTC), Stellar (XLM), Bitcoin Cash (BCH), and Bitcoin SV (BSV). Currently on Robinhood allows sending out Polygon on Matic chain at 0.001 MATIC gas fee. That is less than $0.0001 in gas fee. It is great way to send out MATIC tokens out of Robinhood on Polygon chain. Then you can use a bridge like Celer Bridge to convert to any other chain besides Polygon. Robinhood allows to send out $5000 worth of Cryptocurrencies from Robinhood per day to an external wallet. In my case it is to my prefered Web 2.0 wallet Metamask.
How to Buy ATOM from Centralized Exchange
I used Huobi Global to Buy Cosmos (Atom) tokens. I send my Bitcoin I bought from Robinhood into Huobi Global. After my Bitcoin deposited with 50 block confirmations, it will show up on Huobi Global deposit side funds. I used this funds to buy Atom tokens. Huobi Global is one of those exchanges that charges very low fees for buying and selling. I will provide a link if you do not have a account with Huobi Global. I bought my ATOM tokens with USDT that I had in my account. As of shooting this video 1 ATOM token is worth $14. The withdrawal fee from Huobi Global is 0.005 ATOM. That is like $0.07 withdrawal fee. After the withdrawal is confirmed in Huobi Global with 2 Factor authentication, It takes only less than 10 minutes for the funds to appear on Keplr wallet. Now you can see I have $6 worth of ATOM on my Keplr wallet.
Setting up Defi Wallet for Atom with Keplr Web 2.0 Wallet
Go to the official Keplr website at https://www.keplr.app/. Click on download. This will take you to Keplr wallet installation page. There select Chrome. I am using Chrome browser extension. Keplr browser extension has over 500,000 downloads. Keplr browser extension support Chrome and Firefox. There is also iOS and android Mobile app for Keplr wallet. Keplr wallet is very well designed wallet. Very fast response compare to Metamask. I clicked on Chrome to get the official Chrome Extension for Keplr. Remember ONLY install the official Keplr wallet. There are lots of fake Google Ads so do not install Google AdWords provided Keplr wallet link. Always use links from the official wallet at Keplr.app. After I install Chrome extension make sure you enable it in the plugin button. After I installed the extension, I click on Keplr extension. It will take me to the wallet se tup screen. I can create a new account with brand new seed phrase. Make sure to back this Seed phrase in password manager as well as save it offline from primary computer you use for protection from virus and such. For obvious reason, I did not show the scren where seed phrase is generated. Never share the seed phrase with anyone. As you can see, I send 0.4 Atom from Huobi Global exchange to my Keplr wallet by copying the wallet address on the top and pasting into Huobi Global withdrawal screen.
Using Stride to stake Atom to Claim stAtom
Any staking Atom has 21 day lock up periods. Stake your ATOM tokens in exchange for stATOM which you can deploy around the ecosystem. You can liquid stake half of your balance, if you're going to deposit as Liquidity Provider tokens (LP). In my Keplr wallet, I saw gas option of 0 ATOM. I am assuming this is because as of shooting this video we are in a bear cycle and not much transactions are happending and there is 0 gas fee option. Just like in Fantom Chain there are 1 Gwei transactions happending right now.
Staking stATOM- ATOM on Osmosis
Before you can deposit ATOM onto Osmosis, you have to go to Assets tab on app.osmosis.zone/assets. Connect your Keplr wallet with Atom tokens on it. Deposit your ATOM tokens into Osmosis with very small ATOM gas fee of 0.002 ATOM. After, I deposited ATOM tokens into Osmosis, then I picked Pool #803 : ATOM / stATOM. It has 9.4 million TVL as pool liquidity. Since I only had ATOM, I picked single assets deposit. I end up depositing 0.4 ATOM token with 0.2 ATOM and 0.2 stATOM in a 50-50 pool. Transaction on Cosmos chain is very fast. After I deposited 0.4 ATOM token to create ATOM-stATOM Liquidity Provider tokens, I need to deposit the LP tokens to earn additional rewards. As of shooting this video, a day unbonding APR is 0.33%, 7 days unbonding is 0.54%, and 14 days unbonding is 0.67%. This pool bonding over 14 days will earn additional bonding incentives for 27 days. I recommend unbonding for 14 days to earn extra incentives. It is like locking your LP tokens on a yield aggregator like Beefy Finance in Fantom chain. Swap Fee on Osmosis is 0.3%. Note: Without Bonding you will not earn majority of LP rewards. All Osmosis transactions are recording in the mintscan.io. In Cosmos, you can pay 0 Gas fee with little wait time as of shooting this video. According to developers, Osmosis currently validators accept 0 gas fee transactions. However, when blockchain is heavy like in a crypto bull cycle this might not be true. This 0 gas fee transactions is up to individual Protocol on Cosmos blockchain.
Risk and Rewards on Atom Staking on Osmosis
Osmosis is the Uniswap of Cosmos blockchain. It is well audited famous DEX on Cosmos blockchain. That does not mean it can be exploited for bad actors for smart contract vulnerabilities. It does not have a defisafety score. I am planning on holding Cosmos for the long term. According to dexmos.app for stATOM-ATOM liquidity provider pool, it has bonding APR of 98% for TVL of 9.2 Million with total return of 34%. This is a risk I am willing to take to grow my ATOM holdings.
In the Dexmos app:
1) Internal is how much is paid out in internal OSMO gauges (chosen by Osmosis governance) paid in OSMO.
2) External return is how much you can expect to make in non-OSMO that is added from an external source (like if Stride adds their own token as a reward for the pool)
3) Bonded is what percent of that pool is bonded (liquidity that is not bonded does not earn incentives, be day internal or external, but can still earn swap fees). Other risk is stATOM could lose it's peg against ATOM in Stride.
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