Osmosis in less than a nutshell
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. (reference)
Well… put it simple: it’s a cross-chain DEX, you can provide liquidity to different assets in their native form – Luna on Terra and not and ERC-20 form of Luna, etc. You can also launch LP yourself, delegate liquidity to validators and more.
And it’s emerging and looks like gonna get more market share in the near future.
OSMO is its native token, although according to the time of writing it’s gas free, and Osmosis DEX is the only DEX with great yield opportunities according to time of writing.
How to start farming on Osmosis
As usual – we don’t wanna go to a CEX or through ETH network, cause we’re not losers 😉 – DeFi only.
If you already have funds on Terra – you can skip to step #4:
1. Prepare some funds on BSC network first. Use one of the bridges in DeFi Tools ‘Bridging’ section, preferable Multichain (or Synapse if there’s not enough liquidity).
2. On BSC, swap to UST. I use 1Inch, you compare to PancakeSwap or Firebird.
3. Bridge the UST over from BSC to Terra using Terra Bridge.
4. *On Terra Station Wallet (or any Terra DEX) swap the UST into Luna. Don’t look at the price of Luna now, we gonna swap from it soon.
*This step might be skipped as seems like Osmosis supports native UST, however I didn’t test it so if you wanna skip on Luna’s step – start with small UST amount first.
5. Install Keplr wallet. Keep seed phrase in safe and recoverable place.
6. Using Terra Station Wallet – send the Luna to Terra wallet address in Keplr wallet. Terra addresses begin with ‘terra’, make sure it’s a Terra address.
7. Connect Keplr wallet to Osmosis DEX web app.
8. On Assets tab – click on Deposit of Luna, click MAX and Deposit to withdraw the Luna from Keplr wallet into Osmosis DEX.
9. On Pools tab select your preferred pool to provide liquidity.
10. After you select the pool, click on Swap Tokens button on top (which is like Trade tab) to swap from Luna to your preferred asset. Please note some pools are not 50-50 and you can provide single asset only.
11. On Add / Remove Liquidity (top button) you’ll be able to provide liquidity.
12. Last click on Start Earning button on right to start farming this liquidity pair.
Feel free two ask questions or provide comments, and good luck!