Question:

How frequently do users on Osmosis unstake their Osmosis? What do they do with the OSMO once unstaked? Do they re-delegate, enter a LP position, or swap into another token? Do they re-delegate to certain validators more frequently than others? Why might this be so?

Overview of essay:

OSMOSIS Decentralized Exchange is an Automated Market Maker or AMM that supports Inter-Chain Communication or IBC. User Accounts on OSMOSIS can stake currencies to seek rewards after lock period. Some users unstake their assets for various purposes like price volatile and Choosing the wrong validator.

This essay established a study to estimate the behavior of OSMOSIS unstakers and their treatment after unstaking.

Approach:

• Unstaking process

select * from osmosis.core.fact_staking

where BLOCK_TIMESTAMP>='2022-01-01' and TX_STATUS='SUCCEEDED' and action='undelegate' and CURRENCY='uosmo'

• Made swap

select * from osmosis.core.fact_swaps WHERE BLOCK_TIMESTAMP>='2022-01-01' and FROM_CURRENCY='uosmo'

• Redelegate

  select * from osmosis.core.fact_staking

  where BLOCK_TIMESTAMP>='2022-01-01' and TX_STATUS='SUCCEEDED' and action='redelegate' and CURRENCY='uosmo'

• Liquidity providing

  select * from osmosis.core.fact_liquidity_provider_actions

  WHERE ACTION in ('lp_tokens_minted','pool_joined')

  and BLOCK_TIMESTAMP>='2022-01-01' and CURRENCY='uosmo'

• Validator selection

  from osmosis.core.fact_staking x join osmosis.core.dim_labels y on x.VALIDATOR_ADDRESS=y.ADDRESS

Key findings:

1. The total number of OSMOSIS unstakers in 2022 is about 38.2 unique accounts.
2. The trend of unstaking on OSMOSIS has been more active in May, specially on May 12 with 1034 unique unstaker accounts.
3. The area graph and pie chart reveals the treatment of unstaker accounts in general and over time.
4. Executing a swap with unstaked OSMO is the first chose of unstaker account by 63.3% of them.
5. Most of the swaps by unstakers of OSMO was to get COSMOS and Juno as most used currencies for swap to.
6. Providing liquidity to pools on OSMOSIS is the second popular treatment by unstaker account in 2022.
7. Redelegation of OSMO by Unstaker accounts takes the 2.2% of unstaked OSMO.
8. The most popular validators between unstaker accounts are Frens (🤝,🤝), binary_holdings and Imperator.co. The reasons of selecting these Validators could be found on this reference.