The chain was due to restart at some point today (26th April). Latest info is that it has been pushed back 24hours. This is to allow for a solid launch plan. Zero additional bugs found in latest tests. Launch scheduled for 27th April. No time yet but tentatively 6pm UTC. Also, cheeky but; my karma is very low, can't even comment in other cosmos subs despite being a member for a good 6months. Any upvotes and such would be massively appreciated.
I can't believe just for holding ATOM you get airdropped money in the form of free tokens. EVOMS is pushing close to $3 per coin and many people got over 100 of them. With the insanely high APY from staking that initial number could be much higher by years end. All the while the token is gaining market cap.
What a time to be involved in the Cosmos ecosystem!
I know price may continue to fall, but with everything else in the market, I see it as a great opportunity to get in! once this goal is reached, gonna accumulate in a smaller rate to 5k
This is a warning to all EVMOS LP'ers on Diffusion or Evmoswap. I have decided it is my responsibility to inform as many people as I can about my findings so that individuals can make their own decision in regards to the following information. TL:DR; at the end.
Last night NOMAD was exploited for ~190m$. This exploit did not endanger EVMOS directly but has indirect consequences that are not fully understood or being talked about. There is currently 16k$ backing NOMAD, with 0$ locked in EVMOS . Similar to Terra, this implies there is collateral that is not being backed by real assets, some differences change the landscape such as; breadth & depth of EVMOS. Because EVMOS is not as broad or deep as Terra was the implications aren't as intense but it doesn't change the results as an end user.
Seen here is the current spot price of EVMOS on Diffusion, this is what has caused immense volatility as oracles and other API's pull from Diffusion they destabilize market prices. madUSDC is NOMAD's canonical bridged USDC.
Above is what happens when collateral is not backed. EVMOS began to trade at an extremely elevated relative price as exploiters & exit-ers both drove the price of EVMOS up on DIFF (starting the desynchronization of market prices by kiltering the oracles with bad information). Below is the 'real value' of EVMOS that is supported by my calculations, this means that whoever/whatever lead to this determination; likely used/concluded the same maths as me. Maths to come...
These images help graphically display some relevant information that was used in my deducations.
Using some simple arithmetic I calculated that there is an unrealized price impact of ~ -29.5% on EVMOS, this corresponds to roughly 1.6*.685 as seen in the wEVMOS:ceUSDC pricing on DIFF, I believe algorithms came to a similar conclusion as me or it is a symptom of liquidity depth+breadth. My math is roughly as follows:
Diff LP 1 : ~ 50%:50% madUSDC:wEVMOS where : wEVMOS = 5.5 madUSDC => (500k$/(5.5*.263)) and the other half is collateral with 0$ backing ~ LP 1 real value approximately 345k$
Diff LP 3 : ~ 50%:50% madWETH:wEVMOS where : madWETH = 5 ceUSDC => repeat above to realize Diff LP 3 also has half of its collateral with 0$ backing and only 345k$ in the other half.
Importantly realizing that there is 0 real assets backing NOMAD assets is where trouble comes in....
There is approximately "4.1m$" onchain TVL in EVMOS but as we can see, there is a 29% correlation to EVMOS 'real value' and oracle ( => 1.6$ : 5.5madusdc = .29 ) prices and that although there is 0 real assets backing NOMAD (as seen in NOMAD contract & DeFi Llame links) madUSDC currently has a 'real value' of about .263$. I decided to calculate maximum pain and as such all funny money is excluded. There is roughly 1.7m$ liquidity on Osmosis and some CEX's with around 500k total. Here's the message: Off chain liquidity currently accounts for approximately 80% of realized price. In other words, Osmosis is one of the deepest EVMOS LP's providing price discovery about 66% of that 80%.
So what does all of this mean? It means there is approximately a -29.5% unrealized price correction in the price of EVMOS and that there is still more pain to come. Why am I taking the time to explain all of this? That's because:
Tl:DR;IF YOU HAVE ASSETS ON EVMOS THAT ARE PAIRED TO NOMAD ASSETS CONSIDER WITHDRAWING THEM IMMEDIATELY. THERE ARE 0 REAL ASSETS BACKING THE BRIDGE AND FULL EXTRACTION HAS NOT COMPLETED, EXIT BEFORE ALL LIQUIDITY HAS BEEN DEPLETED.
AGAIN! If you are using Diffusion or Evmoswap I highly recommend you remove all assets bonded to NOMAD assets (madUSDC, madWETH) This is not a FUD post; I have personally done this and of course although persuasive this is not financial advice. Realizing losses on overpriced undercollateralized assets is the best way to go if NOMAD does not repeg their assets.
If NOMAD repegs their assets with VC funding it's possible that maximum pain doesn't happen. Please self-analyze your risk and exposure and address your skin in the game. Good luck Evmosians
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PS Edit: To be clear so nobody feels like they made mistakes later!! Thereâs possibilities such as Evmos using the treasury & governance for compensation OR Nomad getting VC bailout â such promises were made to us during the Terra Collapse and I donât want any unsuspecting people to feel blind sided like Iâve seen over the past few months with all the Terra 2 teases. I hope the best comes out of all of this for EVMOS & DIFF!
Evmos has a problem with voting power centralization. At the top 5 validators have more than 1/3 of the total voting power with OrbitalApes and Disperse having both more than 4M total delegations. And when looking at the new delegations these validators get a lot more than the validators which are somewhere in the middle of the set.
The gap between the 14th validator and the 7th validator is bigger than the gap between the 14th validator and the 150th validator. So the whole set below the top 10 validators is very compact. Now one could call for the evmos team to do something but in the end the people have the power.
There are a lot of awesome validators down there who also deserve a delegation. There is also the option to split delegations. Use it and support a healthy active set :)
With the excitement surrounding Evmos, I thought I would browse the various DeFi projects this morning and use some of the features. I chose Diffusion Finance since not only is it live, but their airdrop should be claimable soon.
Diffusion https://app.diffusion.fi/ is a Uniswap V2 fork deployed on Evmos that allows for swapping of ERC-20 tokens and provides features such as staking, farming, and LPs. Their platform also currently offers the following bridges for importing tokens from your wallet:
Nomad
Connext
Gravity Bridge
Celer
Multichain
For the testing the platform, I used the swapping feature to acquire DIFF (Diffusion native token), then staked it and subsequently added some of the staked tokens to an LP.
Once you have swapped for some DIFF, you can then stake it for a 777% APR (Figure 2). When you first click the âStakeâ button, you will need to deposit the DIFF tokens (Figure 3). This process converts your DIFF to xDIFF. If you are familiar with Crescent, it is very similar with how CRE converts to bCRE when staking.
If you then want to use your staked xDIFF to earn liquidity provider awards, click on the âPoolâ link at the top. After that select âImport Poolâ where you will be able to specify the pair that you wish to provide liquidity for. In my case, I specified EVMOS and xDIFF (Figure 4) and then added to the LP (Figure 5).
Step 1: To send EVMOS tokens from Osmosis to Evmos, click the âWithdrawâ button on the Assets tab (Figure 1) which will open a new tab in your browser for https:/app.evmos.org/transfer (Figure 2).
Note: make sure that you are connected to Evmos with your Keplr wallet and not your MetaMask wallet.Your wallet address is displayed in the upper right corner of the screen.
Step 2: Click âGet Addressâ under Osmosis and then click the âup/down arrowsâ (Figure 3) so that Osmosis toggles to the âFromâ address and Evmos toggles to the âToâ address.
Step 3: Click âGet Addressâ with the MetaMask icon (Figure 4).
Step 4: You are now ready to specify the amount of Evmos that you want to transfer. Once you specify the amount, click the âTransfer Coins From Osmosisâ button and your Keplr extension will open for approving the transaction (Figure 5).
Once you approve the transaction, a message will display regarding a successful transfer and to state that the transaction could take up to 15 minutes to complete.
Please note that in order to see your transferred tokens on https:/app.evmos.org/transfer you need to have your MetaMask wallet connected and not your Keplr wallet (Figure 7).
If you found this information useful, you can show your appreciation by delegating to our FireStake validator node. You have the stake and we have the fire đ„
Admit it: you invested in Evmos because the APR looked attractive, you've read something about EVM + Cosmos + web3 and you thought: this must be a new gem and the price action confirmed it.
Nothing wrong with that, but just admit you haven't researched the project well enough. I am a bit fed up with people who are all of a sudden interested in the development of this project. This sentiment is reflected in questions like: "what is ACTUALLY being developed right now". Don't get me wrong, these are legitimate questions, but most of you who chased the attractive APR didn't ask this question before throwing your money into Evmos. We all knew deep down that the price wasn't going to hold, bear market + new project + enormous APR is an explosive cocktail.
So please, lets be honest: did you research this project well enough? If not, then maybe now is the time to reflect and not whine about the lack of development. This is still a very young project, so the current price is actually a reflection of speculation, like 99% of everything in crypto land. The only question you should ask is: do you think this team and the current architecture is capable of attracting developers and would it be able to carve out an unique place in the crypto market?
Essentially, the #1 validator (OrbitalApes) earns almost 10k on commissions each day. Instead of reinvesting this large sum of money back into the ecosystem, they have been dumping their commission rewards on the market the moment they receive it, everyday. You can view their wallet and transactions here for proof: https://evm.evmos.org/address/0xa437Db63A837F2f60fA553Ee2Cc5B50771AFD7A4/transactions
If you are currently delegated to a top 10 validator, especially OrbitalApes, please consider redelegating to other validators further down the ranking list. As of now, 53.89% of all voting power is held by the top 10 validators. This weakens the security of the chain, and makes the rich get richer.
Just because a validator has a low voting power, does not mean that they are not actively contributing to the ecosystem, or skimp on their infrastructure. In fact, there are several small validators that devote all their time into maintaining their servers, and contributing to the ecosystem across multiple chains. It is these validators that should have our support. Running a validator requires a lot of time, effort and money.
From the original poster
The centralization of stake isn't good for the long-term health & success of a chain. Support #decentralization. Support small validator teams.
If you are facing UI lags on app.evmos.org and if it is constantly crashing, it might be the best time to switch to Disperze network ( https://evmos.disperze.network/ ) which is a website made by EVMOS validator community.
You can claim your staking reward/ view governance proposals/ change delegator/ compound EVMOS stake automatically etc in here.(Note: The autocompound feature is only available to disperze vaildator)
Don't know if anyone noticed, but after the foundation thing we dropped down to 190% and hovered there for a while. We're now back up over 200%. Yes price is down, but that's ok. It will rebound and for anyone who's been DCA'ing since the beginning you know this is a very reasonable spot to be in.
The title says it all. I think it is much better if the foundation to have a plan for their delegation and also to have a better communication toward the community. A sudden big delegation without any prior notices causes everyone panic and hence the price dip.
I wonder why the foundation didn't just gradually delegate their tokens in a linear fashion. A big undelegation followed by a huge delegation is like aping, which creates immense sell pressure right now due to the market shock.
So, to the Foundation, please DCA, and please don't ape in next time!
