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The Osmosis AMM
Osmosis is a DEX protocol, which means it uses smart contracts to determine the price of digital assets, to produce liquidity via a peer-to-peer (P2P) methodology, and to exact trades between users. This approach to an exchange platform is known as an AMM — a DEX protocol that prices crypto assets in liquidity pools. Contributing tokens to these pools helps foster decentralized liquidity, which is then used to facilitate trades on the exchange. Participating as a liquidity provider (LP) can earn you both trading fees and newly minted LP tokens as incentives for participation.
OSMO Token and Superfluid Staking
OSMO is the native token of the Osmosis network. Primarily, OSMO is used for staking to secure the Osmosis chain. As a PoS token, OSMO is inflationary. Over time, new tokens will be minted and entered into circulation. The maximum number of OSMO tokens has been set at 1 billion. As of May 2022, there are 282 million OSMO in circulation.
What is a liquidity pool?
A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions we’ll explore later.
Liquidity pools are the backbone of many decentralized exchanges (DEX), such as Uniswap. Users called liquidity providers (LP) add an equal value of two tokens in a pool to create a market. In exchange for providing their funds, they earn trading fees from the trades that happen in their pool, proportional to their share of the total liquidity.
Methodology
In this dashboard we analyze the ways that users join in liquidity pools. There is two ways to join:
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Dive in headfirst (add both assets; joinpool)
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Wade in carefully (singleside)
For analyzing and getting deep, we should use the datasets which flipside crypto had been prepared. The datasets we will use is:
- osmosis.core.dim_labels
- osmosis.core.dim_prices
- osmosis.core.fact_swaps
For the first group, who Dive in headfirst, I have used (TO_CURRENCY IS NULL OR TO_CURRENCY ILIKE '%gamm/pool%') filter, and for the second group, Wade in carefully, I have used (TO_CURRENCY IS NOT NULL OR TO_CURRENCY NOT ILIKE '%gamm/pool%').
Finally number of stakes, stakers, volume, and average volume in USD is calculated for each type of joins in the pool. They were shown in charts, Also for each token. Let’s dive into the charts. :smiley:
Observation II
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Number of weekly transactions for both types of users: For the second group from July to March, there is an increasing trend and then a decline. From Nov 20, 2022 it has been decreased from about ==6000 to 500==.
For the first group from Nov 20, 2022 it had experienced an increase.
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Volume of weekly swaps for both types of join shows that: For the second group, from the beginning of July to the end of March 2021, we can see an upward increasing trend and after that from May 9 to 16 it pumps to ==67B== !
And for the first group, as it seems last weeks it has volume of ==805M== and ==13.6B==, an increase.
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Average volume per user of weekly swaps for both types of join shows that: For the second group on August 2-7, 2021, we see a sudden increase in the average volume. From November 21 to 28, 2022, the average volume will decrease. And for the first group, it is bright and will increase in these last two weeks of November.
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Observation I
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As you can see, number of total transactions for who dive in headfirst, is equal to ==175K==, and for who wade in carefully is equal to ==16.26M==. Percentage of transactions first group is ==1.07==% and for second group is ==98.9==% .
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Number of total users of first group, who dive in headfirst, is equal to ==28.2K==, and for who wade in carefully is equal to ==409K==. Percentage of total users of first group is ==6.47==% and for second group is ==93.5==% .
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Total amount in USD for the first group, who dive in headfirst, is equal to ==183M==, and for who wade in carefully is equal to ==11.09B==. Percentage of total amount in USD of the first group is ==1.62==% and for second group is ==98.4==% .
A conclusion from the above observations: Total transactions, users, and volume of the second group is much more than the first one.
Observation III
Dive in Headfirst
- The highest number of transactions is for OSMO, ATOM and EVMOS tokens with ==53k==, ==30k== and ==20k== respectively, each of which has ==35==%, ==20==% and ==13.5==% of the total.
- The most number of users is for OSMO, ATOM and EVMOS tokens with ==13k==, ~==9k== and ~==9k== respectively, each of which has ==26.4==%, ==18==% and ==17.7==% of the total.
- The highest volume is for OSMO, ROWAN and ATOM tokens with ==42M==, ==19M== and ==12M== respectively, each of which has ==37.4==%, ==16.8==% and ==10.6==% of the total.
Observation IV
Wade in Carefully
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The highest number of transactions is for OSMO, ATOM and EVMOS tokens with ==6M==, ==3.5M== and ==840k== respectively, each of which has ==37.5==%, ==22.1==% and ==5.17==% of the total.
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The most number of users is for ATOM, OSMO and USTC tokens with ==257k==, ==223k== and ==76k== respectively, each of which has ==20.9==%, ==18.2==% and ==6.17==% of the total.
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The highest volume is for OSMO, ATOM and JUNO tokens with ==2.8B==, 1.96B and ==557M== respectively, each of which has ==36.7==%, ==25.6==%, and ==7.25==% of the total.
Average volume for each token in USD for both type of users :arrow_right: ROWAN has the highest average volume per user for both types of users, foe Who Dive in Headfirst :arrow_right: ==17K== and Wade in Carefully :arrow_right: ~==3K==.
Top 10 users
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