SuperFluid Validating
How strong is superfluid staking?
Superfluid staking is one of the innovative Osmosis blockchain features that makes it uniquely different from other crypto decentralized markets. With superfluid staking, users who provide liquidity in a number of eligible pools delegate the OSMO part of their pool liquidity to secure the network. By doing so, liquidity providers are able to earn additional network rewards as if they are staking the OSMO assets separately.
Since superfluid assets earn the same rewards as regular staked assets, they are also susceptible to the same risk of validator slashing. We want to know how distributed superfluid stakes to understand the effects of a possible slashing.
Since the intro of superfluid in May, 2022, the bar char above shows that it was widely accepted in the beginning. The hype levels have returned to normal, but we can still see constant and consistent superfluid staking activity. So far, there has been 71.4 thousand superfluid stakers with over 1.192 billion worth of pool assets (GAMM) staked.
Pool assets on the Osmosis chain are measured in GAMM to represent the share of liquidity a user owns in a particular pool. This is similar to LP tokens in Ethereum-based applications. Next, let’s look at the distribution of superfluid staked OSMO across the 16 liquidity pools from which liquidity providers are able to participate.
The CRO/OSMO (pool 9) accounts for over 82% of the total OSMO that is superfluid staked. ATOM / OSMO (pool 1) takes second place with 11.7% of total superfluid staked OSMO share. Insterestingly, the top 3 validators also account for > 80% of superfluid staked OSMO. Superfluid staking is highly concentrated in the hands of a few validators and pools.