Liquidity Pools

Stake on Osmosis on BZE/OSMO

Pool Link : https://app.osmosis.zone/pool/856

Staking on LPs differ from traditional staking on-chain staking in the following ways:

• Use have to stake both BZE and OSMO in equal amounts.

As in you want to stake 1000 BZE you also have to stake 1.68 Osmosis.

At the time of writing this page.

After staking this you get BZE/OSMO pair shares.

• Also in Osmosis there are two Levels of LP staking

1. Level 1: In this stage, you earn rewards through swap fees. The current APR is 3.38%. By participating, you benefit from transaction fees generated by users swapping tokens.

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2. Level 2: In this stage, you can stake your coins for a longer period to earn a higher APR. This concept is known as Bonded Liquidity. By locking in your coins, you receive better rewards over time as a result of your commitment.

Currently the APR here is 79.7%

1. The LP offering high APR but they also have high risk i.e. participants face additional risks such as impermanent loss. It may occur when the value of tokens in the liquidity pool fluctuates in relation to each other.

LP staking generally have more risk compared to traditional staking.

Make sure you understand all the terms before adding your tokens to Liquidity Pools.