Swap fees on Osmosis
Examine swap fees paid to LPs over the last 30, 60, 90 and 180 days. Which pools contributed the most to total swap fees paid to LPs? Are there any notable trends in swapping or LP activity over these time periods? What is driving these trends (ie new assets listed and/or governance proposals)? On the topic on governance proposals - does adding OSMO incentives to a given pool (such as with Prop #408) lead to an increase in swap fees generated over the following 30, 60, 90 or 180 days?
According to the question, this dashboard is divided into the following parts:
- Stats related to the paid fee on swaps
- Impacts of swap activity on paid fee
- Impacts of providing liquidity on paid fee
- Determine relationship between governance proposals and paid fee
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.
To handle this analysis, the data from Flipsidecrypto has been utilized. The following steps have been used in this analysis:
Step 1: Determine the paid fee for swaps
Step 2: Breakdown of paid fees by: Liquidity pools and currencies
Step 3: Find the correlation between swap activity and paid fee
- Metrics-> Volume of swaps, count of swaps and unique swappers, average swap volume and paid fee
Step 4: Find the correlation between LP activity and paid fee
- Metrics-> Volume of LP, Count of LP and unique wallets, Average volume of LP and paid fee
Step 5: Investigate on impacts of governance proposals on paid fee
- Metrics-> Find out the governance proposals adding OSMO incentives to pools, Analyze the paid fee on the time period of governance proposals
Note:
To avoid repetitive charts on this dashboard, the time frame of this investigation can be changed between (7, 15, 30, 60, 90, and 180 days) by logging into the Flipsidecrypto. By default, the time period is considered for the past 60 days