Try Quests to earn cryptoSwap activity on Osmosis
Osmosis chain:
Osmosis is an advanced Automated Marketer Protocol (AMM) that allows developers to build custom AMMs with robust liquidity pools. Osmosis is built using the Cosmos SDK and uses the Inter-Blockchain Communication (IBC) feature to enable cross-chain transactions. The Cosmos ecosystem follows the "Blockchain as Decentralized Program" architecture; This means that Osmosis is a blockchain connected to cosmos Hub, which is also a decentralized exchange.
Osmosis, with the help of IBC, connects to the entire ecosystem of Cosmos chains and their more than 10 billion dollars of native assets. After supporting active blockchains on the Cosmos hub, the project aims to connect to other chains such as Ethereum and Bitcoin.
Being able to change the parameters of a liquidity pool is important and useful, but this feature would be pointless without a way to coordinate a decision between depositors. The independent governance feature of Osmosis pools leads to the creation and evolution of a diverse range of liquidity pools with different risks and strategies.
Your liquidity relative to others determines your ownership and voting power in important pool decisions. To encourage long-term liquidity, your shares are locked up for a period of time, with higher rewards and voting rights at higher times.
The long-term commitment and its incentives, in addition to preventing some attacks, establish fairness among liquidity providers. Anyone who takes more risk and puts more assets into the pool for a longer period of time is rewarded and has a greater say in strategic decisions.
One of the most important problems related to decentralized exchange is low liquidity. The most important problem of low liquidity is limiting the possibility of buying and selling. Statistics show that due to people's interest and trust in centralized exchanges, liquidity in centralized digital currency exchange is currently more than decentralized digital currency exchange.
Overview of analysis:
Let’s track the Swap activity through Osmosis network. The goal is to create a dashboard to let people underestimate the Swap activity and popular assets on Osmosis.
This dashboard divided into the following parts:
- Swap activity on Osmosis (General and overtime)
- Behavior of traders on Osmosis
- Popular and rising assets across chains
- Popular assets swapped from and to
- Popular swap pairs
Methodology:
The data provided by Flipside has been used to handle this analysis. To handle this investigation the following steps have been passed as below:
- Step 1: Find out the swap activity on Osmosis
- Table→
osmosis.core.fact_swaps
- Table→
- Step 2: Determine the swap activity on Osmosis
- General metrics→ Count of swap and traders- Swap platforms, Average swap volume, Average swap count and volume per day, Median of swap volume, Average swap volume per block
- Over time metrics→ General metrics overtime, Cumulative analysis, 7-day moving average swap volume in USD, Median and average swap volume in USD
- Step 3: Swapper Distribution
- Swapper distribution by swap count and volume in USD
- Swapper distribution over days of week
- Step 4: Rising and popular assets on various Osmosis
- Most popular assets by→ Volume in USD, Count of swaps and etc.
- Most popular Swap pairs
- Step 5: By aggregating the outcomes of the steps and deep dive into the Osmosis, draw a conclusion about the Swap activity on it.
Findings:
This section has been used to identify the distribution of swaps and unique traders on Osmosis.
- According to the consequences of this section, the most dominant group of unique swappers due to the swap size in USD belong to 5-100 USD.
- Also, the swap behavior of traders over Osmosis according to the count of swaps shown that most of swappers on Osmosis made more than 5 swaps and could be considered as sticky traders.
- On of the important part of investigation over DeFi swap activity is identifying the swap time for various chains. For this purpose, the swap activity over the days of week for Osmosis has been underestimated to find the most popular swap times.
Findings:
This part represents the swap activity on Osmosis:
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The over time analysis shown that the highest swaps on Osmosis occurred on May 9 to 16 on all aspects (count of swap, unique swappers and swap volume in USD).
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After Terra collapse on May, The trade activity on Osmosis has been dropped considerably.
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Median and 7-day moving average of swap volume in USD reveals decrement on these metrics after May 2022.
Findings:
This section has been used to identify the most popular assets and asset pairs on the Osmosis:
- In this section, the most popular assets and swap pairs identified by total swap volume in USD. According to the outcomes, the most popular asset that users swapped from is ATOM and the most popular assets that traders swapped to are ATOM and USTC.
- The Most popular swap pair on Osmosis is LUNC to USTC and the major reason of that is because of Terra collapse and people want to swap their LUNC into the native stable coin of Terra!
- Also, the count of swaps and unique traders for these assets have been underestimated.
Conclusion:
By considering the consequences of previous parts the following conclusion has been drawn:
- The trend of application of swap program on Osmosis has been grown in the final days of 2022 and start of new year due to the market situation and we can see spikes on special dates.
- The supremacy of the native assets (OSMO and ATOM) as well as Terra tokens (LUNC and USTC) are undeniable from the point of view of swap volume as well as count of swaps and unique traders.
- Considering the importance of swap activity and its popularity among users, Osmosis is trying to provide better opportunities with lowest slippage fee to gain a larger share of the market.
Useful links:
Author:
Credited by MZG
Discord handle: m.zamani#0361
Twitter handle: @GargariZamani
