Osmosis Dex is a Decntralized Exchange where you can swap any crypto for any other crypto. Normally on other exchanges, you need to make an account and so forth. Here, you do not. A decentralized Exchange is like a Privacy exchange. In order for this exchange to work, people add crypto as liquidity, which means they lend the crypto to the site, so they can use your crypto to exchange with other people. The website pays you interest and a tiny bit of the profit made from the swapping fees. Is this safe? Well, putting your crypto on another website that could crash or stop at any time, isn't safe. But you could also get some good rewards for your risk.
I bonded $50 of crypto into the Osmosis Dex, as a superfluid Liquidity Stake and I was paid about 7 cents, per day, for all 14 days of the staking period. Give or take a few, it came out with me getting 97 cents of rewards from that staking session! So, I took the rewards and went to the swap section and swapped half of that for USDC and then used that, with what I had left over, and re-invested all of it.
Pros:
* APR is actually quite high. Even by investing $10 of USDC/OSMO split, could get you a bit per day, about 1 penny a day, if you are doing the 14 day lockup.
* This gives you one of the highest rewards for staking that I have ever seen.
* After the reward session is over, and your 14 days is done, take the osmo you made, swap half of it, then do it again.
Cons:
*Osmo was at 86 cents each when I had first started my 14 day stake and when I cashed out, it was down to 76 cents each. Obviously, if it becomes worth more, then your rewards would be worth more.
* Just like anything, putting more in, will increase your interest and what you get out. But beware that if OSMO crashes, like the way that BTC did, then you will still gain crypto interest, but just now as much as you wanted.
In Conclusion, the investment amount that I have in this staking pool, will only increase, when I can ass some in, funded by faucets and the like. I will never use my own fiat money in any crypto investment; anymore.
Osmosis Dex does have some new things, as yesterday they introduced a new crypto their exchange and offered a 12,175% APR interest rate on a 14 day lock-up. No, that wasn't a typo. Today that same stake is now at 6,150% APR. I have $79.50 in this staking pool, and if my calculations are correct, this means that during the lock-up period, I would be getting (6,150%/100)/365=0.16849 times the dollar amount invested. This would then be the 0.16849 times $79.50 and shows that I could get an average of $13.39 worth of that crypto, each day in rewards. If the APR interest stays at this amount for the rest of the lock-up period of 14 days, then I could be getting about $187 worth of this new crypto! I could then either invest again in another 14 days, if it is working well or take that earned crypto and my original $79.50 out and swap it for something else, like USDC or even ATOM and be happy.
