Finding Your Reason for Crypto
Osmosis Nitrogen update, Osmosis App Refactor, and the very purpose of crypto...
Pioneers,
What purpose does cryptocurrency serve for you?
Bitcoin was created to serve as a trustless and secure peer-to-peer electronic cash transmitted over the internet and allowing users to “be their own bank.” Ethereum was created to support configurable decentralized applications (dApps) that anyone could access for only a small fee (like the Apple App store, for dApps). Alternative cryptos that followed had a myriad of use cases, and some (“meme coins”) had none whatsoever unless and except you count “entertainment value” to be of value.
I encourage you to meditate on this question in tandem with your goals.
TL;DR
Crypto should be about more than trying to “get rich” - and it is if you explore the content that adds utility for various use cases.
Programming and coding are becoming more prevalent, and will lead to more virtual and digital content that can be leveraged within the world of crypto. I take a look at the growth and possibilities of code as it relates to crypto.
Osmosis updates this week include the Osmosis “Thirdening” upcoming inflationary supply cut June 20th, the Osmosis webapp refactoring, and Osmosis Nitrogen (v9) update introducing new features and support.
With so much going on in Osmosis, let alone crypto as a whole, I’ve provided five key resources you can use to keep tabs on everything going on - here’s one.
The Ethereum “merge” from PoW to PoS is getting more buzz, and after several prolonged delays, may finally be gaining some traction. This would open up and introduce an entirely new crypto ecosystem to the world of cryptocurrency staking (crypto staking being a major focus of this newsletter).
I take a look at some sweet AR tech, crypto visualizations, Osmosis NFT’s, Kanye possibly getting into NFT’s after adamantly refusing, and pool #722 for EVMOS continues to catch my eye, especially as a one-day, lower risk bond.
The crypto space will look very different 5 years from now, and there’s a lot of benefit that crypto can provide if we focus on utility and incentivizing users to solve problems for themselves and humanity.
Getting Into Crypto
My cryptocurrency journey started several years ago as a natural extension from my interest in traditional finance (TradFi) and Technical Analysis, which has been passion of mine for many years. I started and ran a Technical Analysis tutoring company for students taking the CMT exams. I was (and still am) eager to learn the newest financial market, the frontier at the intersection of Finance and Technology (“FinTech”) and apply TradFi methods. In addition to the extension of TradFi/Technical Analysis, the possibility to achieve greater financial freedom served as a magnet for my focus and motivation in the burgeoning field.
But crypto can be, and is, far more than financial motivation, although financial incentive to power crowd-sourcing and communities is one of its biggest benefits. “Crypto” will expand to the point that there will be something of interest and/or benefit for 90%+ of the population with access to a smart phone or internet, similar to the expansion of the internet. (I still can’t believe that most people thought the internet would be a “fad” and that people “wouldn’t have time to waste online” - ha!).
The opportunity to geek out over computers and write code to actually develop on the network is a no brainer for me. This stuff is really fun, and to me is like a huge playground during recess that lasts in perpetuity. And there are many other purposes that crypto and blockchain technology can support and these will continue to expand.
Code & Coding
Code is the basis of everything we do on the web. It is the very fabric of computing, and if written correctly and purposefully, is master to none. Godlike in its ability to communicate, it is surpassed only by the manner which its commands are executed. And the executor? The cold metal and silicon that is compute, grinding away and processing, processing, processing 24/7. Amazing. Crypto opens up the possibility for accelerating our understanding of computing and how to write code for it and on it to support applications. The interaction between code and metal can be magical.
A Personal Intersection - Hardware
Arguably one of the many major driving forces of my interest in crypto is the experience I’ve had working in cloud-based computing technology. Work in support of scientific research has given me a strong purpose and interest in applying learned lessons to the field of cryptocurrency validating, or proof-of-stake network support.
While the content and goals are wildly different, the glue binding them together is wildly similar. Infrastructure (the machines) is one half, with applications serving the other. My experience has been primarily on the infrastructure, or computing aspect.
Application Layer
The application layer typically sits on top of the infrastructure layer, so these are two distinct entities. In computing, this isn’t always the case. The genius in the the Ethereum Virtual Machine, or EVM, is that Vitalik separated the infrastructure layer from the application layer. Each can be maintained by their respective top talent by area - infrastructure admins/devs and software engineers.
It’s All in the Code
If we believe that apps sit “on top of” the infrastructure that runs blockchain technology, then it is reasonable to think this underneath layer is comparable to our subconscious and applications are the conscious perceptions and engagements. I don’t believe it quite fits into this same dynamic (conscious and subconscious), but I also don’t believe it’s that far off. If that’s the case, then infrastructure dictates crypto story arcs, rather than whatever is going on at the surface level. But I have to believe that’s not true either, so there is some combination of infrastructure and applications that drive adoption, with the limiting factor the infrastructure and blockchain technology underpinning it. But everything still revolves around code.
Number of Instructional and Training Hours Served via Code.org
For the Love of Code
We love code, whether we realize it or not. Every video game ever played on every computer, arcade, or gaming device was made possible only by code, as have countless (infinite?) other items we use in our daily lives. In the history of humans, code hasn’t been around for very long at all, and it’s growing at an exponential rate. For society, this means more virtual activities, more computerization creating movies/shows, more uses for cryptocurrency, more sophisticated outcomes, and definitely more gaming.
The growth of Code.org integration alone in the past 10 years shows exponential growth in schools. Children are learning to understand the fabric of digitalism, paving the way for more.
Programming as a Professional Skill
It’s no surprise then, that coding bootcamps such as Byte Academy and Hack Reactor have proliferated and are growing as the preferred way to learn new skills by younger generations. Not to mention geeky games you can tinker with and build on like Roblox and Minecraft that are becoming the norm for kids, and household names for adults. Four of the top five most in-demand professional technical skills require a deep knowledge of coding, and one can argue that 2-3 of the top five most in-demand non-technical skills can be enhanced by a general or specialized understanding of computer science, depending on the content of the product or service offered.
Osmosis Updates
Osmosis Thirdening
This is fair warning that the native Osmosis token, OSMO, will undergo its first inflationary cut since launching last year. It also marks the one-year anniversary of Osmosis. 🥳 The Thirdening will take place on approximately June 20th, 2022. Per the OSMO token supply schedule, the amount of daily OSMO minted to the market via rewards will decrease by 1/3rd of current, and this “thirdening” will repeat annually for 7 additional years (8 years in total).
Commentary
I think this can’t come soon enough, in light of the Terra/UST debacle. OSMO is hurting and limiting is production comes at a time when it is needed most. The APR’s and reward rates will likely take a hit by a similar factor (1/3rd) but this is the first time I’ve been directly involved in a supply cut so I’m not sure what will happen.
In theory the value of the OSMO token will go up because supply is being reduced. At current levels, APR % could potentially be replaced by principal gains, so that a cut in APR is not realized in full, as the potential price increase offsets APR cuts from this moment in time. New users entering Osmosis after any potential price run would not receive the same benefit. I am merely speculating here, and a supply cut is not necessarily likely to lead to a price increase.
Osmosis Refactor
Osmosis recently was the beneficiary of a “refactor” or back-end coding reconfiguration by the dev team. (How do I know? Osmosis Discord, naturally.) A refactor by definition only changes the “behind-the-scenes” workings and leaves the front-end (the website) looking the same. You may notice the following as a result:
Faster execution and load times
Error with Keplr wallet that causes the pop-up box to persist after successfully signing a transaction. You will have manually close this before putting through any other transaction with Keplr until the team resolves.
Snappier performance of Osmosis App pop-ups (E.g. removing/adding liquidity)
Other minor bugs or adjustments (E.g. Someone wondering why the “remove liquidity” visual reverts to 50% after requesting 100% and putting the transaction through.)
You can leave any feedback you have for the Osmosis team in the Osmosis Refactor Feedback form.
Osmosis Nitrogen Update v.9.0.0
Osmosis will undergo a network update at block height 4707300 on June 7, 2022, 16:00 UTC. The update will include many beneficial features supporting the network.
As I wrote about previously, the limitation with Superfluid staking is that validator votes overrode delegator votes because the functionality wasn’t in place to accommodate voting with superfluid. This is now fixed and delegators votes will override their vaildators.
Props will now have a customizable voting period. This one is a little worrisome (for bad actors trying to dupe) but adds a flexibility for any future Terra-like meltdown where emergency measures are needed. Removing the anxiety of knowing there’s nothing we can do in the event of a drain or malicious event is worth the risk IMO. Supporting emergency props is good if the community behind them is strong (which it is as far as I’m concerned).
Upgrade to IBC v3. They’ve graciously included an ELI5 for interchain txns:
Adding non-Osmo transaction fees to pool of daily stake rewards. All non-OSMO fees will now be converted to OSMO and the sum distributed to stakers daily, adding a nice little boost to the stake APR.
CosmWasm (smart contracting) updated to v27 from v23 (from wasmd v0.23.x to v0.27.0) with following features
Ability to build on M1 macs
Security enhancements
TokenFactory module added for enabling custom tokens and swaps
The network will be down for ~30 minutes during this time. This will occur at approximately 11:00am PT / 2:00pm ET in the US and last for ~half an hour.
Additional details available on the Governance portal and Community Update.
Stay Up to Date on Osmosis
There’s so much going on constantly in crypto, and it’s hard to even stay up to date on a single network, let alone several is practically impossible. In order to stay up to date on Osmosis, I recommend you make use of the following resources.
Osmosis Discord (you’ll want to get the Desktop app if you’ve never used Discord before).
I recommend taking a look here and at least joining the server
You’ll have access to all the latest announcements and updates
You’ll be able to interact with the community and ask questions
You can open support tickets for any issues via the #?support channel.
Osmosis Twitter Accounts
Osmosis Zone official - https://twitter.com/osmosiszone
Osmosis Ministry of Marketing - https://twitter.com/OsmoMinistryMkt
Osmosis Labs - https://twitter.com/osmolabs
Osmosis Support Lab - https://twitter.com/OsmoSupportDao
Osmosis NFTs (new!) - https://twitter.com/osmosisnfts
Osmosis Community Updates
Osmosis Governance Proposals dashboard
This Newsletter 😁 - link to main
Crypto Highlights
Gemini (crypto exchange) is cutting 10% of staff. Coinbase rescinded job offers. Dozens of tech companies haven’t announced an unofficial hiring freeze. And yet for others the show goes on, as Fidelity’s digital arm is doubling-down on its staff. The effects of the Fed’s tightening continue to test us, as I had previously written about.
The big news we’re excited about in the world of staking, is the Ethereum merge is becoming closer to reality. Ethereum will go “2.0”, or switch from Proof-of-Work to Proof-of-Stake. This should bring in a lot of new users as blockspace on the Ethereum network will be vastly cheaper than it is now (the most expensive blockspace currently by far). This will open up a $220 BILLION dollar market to our world of staking, as current blockspace is prohibitively expensive for the retail investor.
How could I let another week go by without reporting on the fallout from the Terra collapse (again). This is sad and unfortunate but I don’t agree with the statement that “Crypto is little more than a casino.” If there is any silver lining to be had, its that the value of diversification should not be underestimated. As tempting as it may be to put ALL of your funds into Osmosis (or crypto in general), for 99% of people it makes sense to diversify. Terra was responsible for wiping out multiple life savings and family nest eggs, and the lesson simply cannot be ignored. Never allow yourself a single point-of-failure with your finances. Here’s a link to the WSJ article TerraUSD Crash Led to Vanished Savings, Shattered Dreams. I really feel for them and hope that they’ll be able to rebuild, let’s see if we can support them any way we can.
What I’m Looking At
Magic Leap AR
The enterprise opportunity in augmented reality is estimated at about $40 Billion annually, with three key areas pegged as early drivers for adoption.
Healthcare, taking AR into the Operating Room so that patients vitals can be overlayed upon a physician’s normal field of vision, along with enabling a sort of “super focus” for doctors through “Dimming” innovation.
Training and command-and-control scenarios for defense, military, and fire control operations, to name a few. The demo for this is very cool! Check it out.
Manufacturing, for front-line workers to remain hands free but be able to access instructions and screens that assist with completing tasks.
I expect that sooner or later as these devices become more ubiquitous, and the use cases more relevant to the general population (or at least the techie crowd), cryptocurrency will surely work its way into the platform.
Unchained Interview with Osmosis Co-Founder Sunny Aggarwal
Crypto and Bitcoin Visualization Dashboards
I’ve been exploring various Bitcoin and other crypto dashboards and visualizations, here are some of my favorite to date:
IBC Connections and Networks: https://hub.mintscan.io/ibc-network. Notice how big of a role Osmosis plays in the Cosmos…
http://dailyblockchain.github.io/ - a look at live Bitcoin blocks being hashed out
Osmosis and Cosmos Network Grafana dashboard. Contains info on blocks and validators as well as throughput and other technical metrics.
Osmosis New Users Dashboard - very cool, and I like what I see!
Osmosis Server locations and info - See where every node is and on what platform
TVL across all DeFi Chains - You can see the dramatic impact of Terra’s departure in the spike up of all remaining networks.
Osmosis NFT’s
Osmosis NFT’s are apparently coming from their Osmosis NFT twitter as well as the information posted on the Osmocon website. The “mascot” for Osmosis is Wosmington, or Wos, and his counter-part, Dogemosis (that little cute dog you see on the WebApp). Looking forward to seeing these live.
Pool #722 - EVMOS/OSMOS
I’m surprised how the liquidity in this pool has stayed so low (< $1million at time of writing). The yield is far higher than most new pools launched on Osmosis, and the dynamics of Evmos are neutral at present. I wonder if users don’t understand the Swap Fee APR, which is nearly ~200%. In my prior post, I had written that a 1-day bond would allow users to take advantage of the swap APR (Which was even before additional ~200% in incentives started, and TVL is only 2x in a week).
Because TVL has not gone up as rapidly as I had expected, the offer is still on the table. A 1-day bond is an ultra-low commitment relative to 7 or 14-day bondings, if you’re skittish about holding EVM. If you’re willing to take the risk, total APR for a two-week stake is somewhere around 400%. I do expect EVM to take a hit in price at some point, being so new the supply is currently less than it will eventually become, while demand may stay the same or wane. This is a risk we’re personally willing to take, but will be ready to exit if red flags appear (per my Tokenomics).
If anyone is reading this more than 14 days after publication, the situation will probably be wildly different than it is now, so you’ve been warned!
Kanye Getting in on NFTs
After refusing to get into NFTs, Kanye may be turning the corner on them as Decrypt recently reported regarding his decision to trade mark digital products. Super vague, super sus. We’re super excited.
Cryptocurrency’s Place in Our World
In conclusion, the reason many of us became aware of crypto is probably because we heard about the “FinTech revolution” and/or we seek more financial independence. My goal is to help others get closer to that, and also to provide commentary and clarity of thought. I maintain that crypto is best used in support of what it was designed to do (buying and holding has little utility if you’re simply hoping to get rich). In the case of Osmosis, the best use is to trade on the DEX, research token projects, stake tokens, and help others trade by providing liquidity to a pool. You can also get involved in the fantastic community, and even start building on Osmosis. The future of Osmosis will include new options, including not yet realized options.
Each crypto needs to solve a problem for users if it expects to last. The more people it helps and the bigger the problem it solves, the more utility. Crypto in general can be a force for good if it helps promote financial awareness, onboards new users that learn how to code, increases users freedoms and choices, and through DAO’s and other organized community efforts with financial incentivization, offer a more balanced power structure for society and ramp for change. Osmosis offers a beautiful UX.
I believe developments in crypto will lead to more inclusion and a better quality of life in the aggregate, as a single individual’s raised quality of life increases the total sum quality of life across all. This may seem idealistic, but the fact that a market exists that generates interest, enthusiasm, an engaged community, and a passion for learning and discovering new things is not a bad thing. Yes, there are risks, but these can be managed, and you don’t necessarily have to take on risk at all. The biggest risk is to dismiss entirely the possibilities that crypto can offer; by taking an investigative approach you will expand your mind and think critically about the purpose that crypto serves. If you look close enough, I think you’ll find there’s value for you there.
Stay nimble,
Michael Broudy, ACS & StakeSchool.com Founder
DISCLAIMER: Angel City Stakes and StakeSchool.com provide content for educational and informational purposes only. Under no circumstances should any communication, content, or material referenced or distributed by Angel City Stakes, verbally or written, be construed as financial or investment advice. Ultimately you, and only you, are responsible for any capital-related decisions you make and only you are accountable for the results.