Compounding Riches on the Cosmos Ecosystem: Insane Yields, Slick Dexes, Insider Strategies and Secret Research Resources Part 2

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Compounding Riches on the Cosmos Ecosystem:

Insane Yields, Slick Dexes, Insider Strategies and Secret Research Resources Part 2


        Disclaimer:  I am not a certified account, lawyer or financial advisor.  Everything I write is for educational purposes.  Before conducting any of the information here, be sure to consult an expert on the topics here before executing them.

In part 1 of my article, I discussed more about dexes along with some yielding opportunities by contributing to Liquidity Pools.  However, I haven’t gone to the greatest depths of what the cosmos ecosystem can offer.  It is also important to understand the underlying mechanics of how this system is designed.


Staking


I haven’t gone too far into the depths of staking.  The gist of it is to advocate people to secure the network by having ATOM stake their coin.  The initial model was a demurrage model, one by which simply holding ATOM would have it depleted from your account for a failure to stake.  Instead, it was designed with an inflationary model.  This means new coins are always being issued into the Atom ecosystem, even with a fixed market capitalization, each coin would be worth less as the coin becomes less scarce.  The only way to offset this inflationary dilution was to participate in network security via Staking.


Here is a list of the current staking rewards available according to Keplr:


  • Atom: 16% max

  • Osmo: 63% max

  • SCRT: 23.08% max

  • AKSH: 30.36% max

  • CRO: 14.88% max

  • IOV: 18.36 max

  • ROWAN: 162% max

  • CTK: 25% max

  • IRIS: 10.22% max

  • REGEN: 26.49% max

  • XPRT: 34.49% max

  • DVPN: 51.59% max

  • KAVA: 34.34% max

  • IXO: 48.16% max

  • NGM: 22.22% max

  • BLD: ???% max

  • BOOT: 140.74% max

  • JUNO: 99.69% max

  • STARS: 120% max

  • AXL: 15% max

  • SOMM: ??? max

  • UMEE: 52.31% max


There are other coins you can stake that are in the ecosystem but currently those are the major chains that are up and running and the safest to connect to your wallet.


DeFi


The Achilles heel at the moment is that there are no fleshed out Defi protocols operating on the Cosmos Hub.  However, there are ecosystems that are subsets of the cosmos ecosystem that do offer defi protocols.  This doesn’t mean that there will be no offerings.  In fact there are two projects in the making right now that are dedicated to this.  I’ll go over them briefly before I discuss the other ecosystems.


Umee

If you are familiar with AAVE or Compound, you’ll be able to understand this project.  It is a borrowing and lending protocol on cosmos.  Unlike AAVE and Compound, it is a cross chain protocol on both cosmos and ethereum.  However, it is still under testing and is still in development.  Even the yielding opportunities aren’t up to snub yet.





However, there are a lot of reasons to be bullish on the Umee project.  We can evaluate its founder, Brent Xu.  He has experience as an strategic advisor to Tendermint, the founding company of the cosmos blockchain.  His team is made up of people coming from the companies like consensys, JP Morgan, Google, Binance and more.


There are also some major venture capital firms backing this project.  Some major investors include Polychain Capital, Alameda Research, and Tendermint.  They also have backing from Coinbase Ventures which could hint at a possible token listing on coinbase sometime in the future.


Sommelier


Ever hear of a Sommelier?  No?  That is because you are broke.  A Sommelier is a profession only in the service of rich elite people, a group I know you want to join because you are reading a blog about crypto.  A sommelier is a profession which gives wine recommendations to wine consumers.


In similar fashion, the Sommelier Protocol will give you “financial suggestions” to fine tweak your crypto portfolio.  It will also seek new Liquidity pools, limit orders and other tools which aren’t available on traditional defi platforms but available on cefi platforms.  Unfortunately, the application isn’t currently usable and still in development.


It has a pretty good team and investors tied to this project.  It has cosmos alumni Zaki Manian and Jack Zampolin as co-founders, a gold standard stamp on any cosmos project. Some current investors include Alameda Researech and Multicoin Capital.




Chronos.org Ecosystem


This is actually a very interesting piece of technology.  There is a project in the works called “Evmos” originally branded as ethermint.  It will allow the ethereum virtual machine run on cosmos.  The Chronos.org (CRO) blockchain already allows for that.  You should be using the Crypto.com wallet to engage with this system.  I’ll run down some of the yielding oppurtunities here:


  • CRO staking: 14.8%

  • VVS Finance: There are a quite a variety of yielding opportunities out in this app alone, and you’re not going to have to use the ethereum blockchain.  Their farms currently give out rewards in terms of VVS for providing Liquidity.  Some of their farms also permit what is called “multi yield”, which is similar to dual yielding in Raydium or the external incentive liquidity pools in Osmosis.  They also have “mines” where you stake VVS or xVVS and get another token.  You should also check out their xVVS page for a high staking yield of 210%, stake VVS and get xVVS back.

  • Mad Meerkat Finance:  This is an extremely cool dapp to use.  Right off the bat, it offers multiple ways to on ramp into the ecosystem through other ecosystems.  There are incredibly insane yields on its farms.  I saw a stablecoin farm with 33% apy.  The vaults also offer extremely insane yields, as in over 100,000% apy.  This platform is definitely for the most degenerate crypto investor.

  • Tectonic: Think of it as Compound or AAVE for the cronos ecosystem.  Most of the yields are not particularly high.  However, it does provide some decent yielding chances, as of typing this, you can get about 10% yield on your CRO coins and get 46% yield on the native governance token, TONIC.  You can also stake it for additional yield of 52% as of writing this article.


There are other DAPPs in this ecosystem.  However, these three dominate most of the CRO.org ecosystem.  I’ll go into more detail in a future article.


Strategies in the Cosmos Ecosystem


There are some caveats in the cosmos ecosystem, the high yield stakes and the free airdrops.  It is very important to know this information because there are certain behaviors that people in the cosmos ecosystem engage in.  Much of what baits people to get to invest into the cosmos ecosystem is the idea of having a form of passive income.  The staking yield is a form of inflationary rewards, a mechanism to incentivize people to stake their coins.  This is especially true of coins that have an inflationary rate north of 25%.  It isn’t unusual that people take their air drops and dump their free coins onto the market.  In other words, there is A LOT of selling pressure, reducing the price of much of the coins you could be holding on can easily lose value within a few weeks to a few months.  For this reason, I’ll go over a few strategies you can do.


1: Hodl and Yield


If you actually like the projects you are getting into, you’ll always want more.  Since most of the yielding you will get is “in kind”, you can easily deal with the dilution of the price value.  Most of them have a maximum supply that will ever be issued with the exception of the ATOM token itself which can mint an infinite amount.  Whatever you yield, simply reinvest your newly minted coins.


2: Dollar Cost Average


Don’t try to dump your money in one shot, especially when the market is hot.  Unless you are looking to set up your portfolio with some aitdrops, it is far more wise to slowly drip money into this ecosystem than risk having your money be wealth diluted shortly from inflationary rewards.


3: Sell some of your free airdrops coins


It isn’t unusual for people to sell off their airdrop coins for crack and cheeseburgers.  All joking aside, there are people who are trying to live off their airdrops.  You may want to consider selling off some of your own air drops and buy back at a later time to buy the dip.


4.Play the trading ratio

There are going to be times when other coins are going to give you more purchasing power against others, especially ATOM which has held very steady between $15 and $40, whereas other IBC coins can easily drop by 60% to 90%.  So if one position has a yield greater than 25%, you may want to consider taking staking rewards you receive to buy and grow the size of the amount of ATOM you stake.  As your other coins lose large amounts of value, you can take your ATOM staking yield to purchase these other coins.


Resources for the Cosmos Ecosystem


You should always be typing to keep up to date with the information coming out of crypto, especially with the cosmos Ecosystem.  I’ll provide some fantastic resources that are great ways to learn more about the cosmos ecosystem.


Cryptocito





If there was ever a resource where you had to get your sole source of information about the cosmos ecosystem, this guy would be the best.  He has a lot of close connections with founders of cosmos related projects.  The fact that he could get an interview with Jae Kwon, cofounder of cosmos.  The reality is, Jae Kwon almost never does interviews.


Confident in Crypto





If for some reason you dislike Cryptocito, Confident in Crypto is a fantastic runner up.  An edge his channel has is the amount of tutorials for different things going on in the cosmos ecosystem.


Don Cryptonium



If you want a little more humor in your cosmos education, this could be the channel for you.  His humor is a little more dry but entertaining nonetheless.  However, I do not find his content to be as informative as the previous two channels.


Concluding Thoughts


If you are an individual with a smaller portfolio, I would strongly recommend adding the cosmos ecosystem into your portfolio.  By simply staking Atom, you are growing your cryptocurrency portfolio with airdrops alone.  This can give you a significant growth in your wealth without spending much money.  This is a constantly growing and expanding ecosystem that has generated a great deal of wealth in the cryptocurrency space.


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