🎇 Definition

What Is The Cosmos Ecosystem?

Osmosis is a decentralized exchange (DEX) and automated market maker (AMM) protocol for the Cosmos ecosystem. To understand the specifics of Osmosis, it’s helpful for you to know the context of the Cosmos ecosystem upon which and for which it is built. Cosmos is an overarching ecosystem of blockchain networks that can connect with one another as part of Cosmos’ mission to build an “internet of blockchains.” Interoperable decentralized applications (dApps) on these various networks communicate with each other and send tokens and data back and forth via Cosmos’ Inter-Blockchain Communication (IBC) Protocol.

The Cosmos Hub is the mainchain that serves as the central ledger and primary blockchain protocol to connect with other blockchains in the Cosmos Network. It is a Proof-of-Stake (PoS) blockchain built by the Ignite team and uses ATOM as the native token for voting, staking, and transactions. Cosmos also provides a software development kit (SDK) to enable projects and teams to build on its network.

What is Axelar?

Axelar delivers secure cross-chain communication for Web3. Secure means Axelar is built on proof-of-stake, the battle-tested approach used by Avalanche, Cosmos, Eth2, etc. Cross-chain communication means you can build a complete experience for your users that lets them interact with any asset, any application, on any chain with one click.

What is Satellite?

Satellite is a web application built on top of the Axelar Network. It provides an easy-to-use interface that enables users to transfer their crypto assets from one chain to another.

FTX Crush

FTX was falsely perceived as one of the most stable and respected firms in the crypto industry until it was plunged into crisis in 2022. In November 2022, a CoinDesk article stated that the related firm Alameda Research had a significant portion of its assets in FTX's native token FTT.  FTX filed for bankruptcy on Nov. 11 after a surge of customer withdrawals earlier in the month. CEO Sam Bankman-Fried admitted that the company did not have sufficient assets in reserve to meet customer demand. Looking at the $FTT token price, we can see that November 8, was the starting day of FTX bankruptcy when Binance came to help but put the step down after a day.

> Recource: [1], [2] & [3]

🛣️ Path

• In this analysis, we are going to have a deep analysis of Axelar's Satellite through the FTX bankruptcy crash to find out if there came any sparks with it into the ecosystem or not in the first week of the crash and will compare it with the week before the crash (Nov 1 to 7 & Nov 8 to 14)

• This analysis contains Two main parts, Bridges Activities, and the FTX Outflow

• The Bridges Activities part itself contains six sub-section:

  • On the Destination part, we will compare the bridge frequency and volume before and after the FTX crash
  • On the Token part, we will see what are most used tokens to bridge into chains
  • On the Bridge Source part, we will see which chains were the source of bridges transfers in total and over the time
  • On the Bridge Destination part, we will see which chains were the destination of bridges transfers in total and over the time
  • On the Path part, we will see which chains directions are most used here, meaning the transfer from chain X to chain Y would be X=>Y path, also in total and over the time
  • On the User’s part, we can find out the unique senders and receivers of the bridges transfers to see how many users came into the Satellite

• The FTX Outflow part will investigate the inflow, outflow, and net value from FTX Ethereum wallets to see how much funds came out from it and if there any outflow came into Satellite or not

• These provided insights will show us the user’s bridges activities on the week before and after the FTX crash in Axlear's Satellite, their favorites asset for bridges, most used paths for bridges, and dig into FTX Ethereum wallets outflow to track any users who came into Satellite after that

⚙️ Method

• Timeframe:

  • Before FTX Crash: From November 1 to 7
  • After FTX Crash: From November 8 to 14

• The main table that was used for this analysis was axelar.core.fact_transfers

• We also used osmosis.core.dim_prices and ethereum.core.fact_hourly_token_prices for calculating the volume part

• In the FTX Outflow part, we used crosschain.core.address_labels for finding FTX addresses with ADDRESS_NAME ilike '%ftx%' and LABEL_TYPE='cex'

• Also, using ethereum.core.ez_token_transfers and ethereum.core.ez_eth_transfers we tracked all inflow and outflow from and to FTX Ethereum wallets

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1️⃣ Bridges Activities

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2️⃣ FTX Outflow

✅ Conclusion

In this analysis, we went through a deep dive into Axelar's Satellite bridges through the FTX bankruptcy crash, and here are our findings:

• Looking at all bridges in the last two weeks, ~56.5% of them happened After the crash, ~13% more in comparison with the week before
• Looking at all bridges volume in these two weeks, ~81% of them happened After the crash, a 4X more volume
• ~57% of all bridges and ~92% of all bridges’ volume After the crash were IBC_Transfer_In
• In terms of the number of bridges, USDC went from ~28% share Before the crash to ~46% share After the crash, and AXL faced a 10% decrease in total share from ~41% to ~31%
• We can see a spike in the first three days after starting the crash from Nov 8 to 10 for USDC and USDT, and a huge spike for USDC on Nov 13 in bridges volume
• There were some spikes on Nov 8 & 9 from Osmosis, Axelar, Evmos, and Kujir in the number of bridges and form Terra, Kujir, and Osmosis in bridges volume
• There were some spikes on Nov 8 & 9 Into Osmosis and Axelar in bridges count and into Axelar in bridges volume
• There was a ~19M $USD volume that came into Axelar on Nov 13
• Osmosis=>Axelar, Evmos=>Axelar, and Axelar=>Osmosis had a spike in bridge count, and Osmosis=>Axelar and Terra=>Axelar in bridges volume on Nov 8 & 9
• There was a ~10M $USD volume for Kujir=>Axelar on Nov 13
• There was a spike on both sender and receiver in IBC_Transfer_IN and the sender and receiver in IBC_Transfer_OUT on Nov 8 and 9
• On Nov 7, the day before the start of a dramatic fall in FTX token named $FTT and the FTX crash, a huge amount of outflow came out from FTX Ethereum wallets
• There was not any user that withdrew from FTX and came into Satellite for bridges

1.1 Direction

1.2 Token

1.3 Bridge Source

1.4 Bridge Destination

1.5 Bridges Path

1.6 Users

✨ Highlights

• In terms of the number of bridges:

  • We can see a spike in the first three days after starting the crash from Nov 8 to 10
  • Nov 9, with 2.3K bridges was the day with the highest number of bridges these days
  • ~57% of all bridges After the crash were IBC_Transfer_In, which is ~5% more share than the week Before
  • Looking at all bridges in these two weeks, ~56.5% of them happened After the crash, ~13% more in comparison with the week before

• In terms of bridges’ volume:

  • We can see a spike in the first three days after starting the crash from Nov 8 to 10 and a huge spike on Nov 13
  • Nov 13, with 2M $USD was the day with the highest amount of bridges these days
  • ~92% of all bridges volume After the crash were IBC_Transfer_In, which is ~2% more share than the week Before
  • Looking at all bridges volume in these two weeks, ~81% of them happened After the crash, a 4X more volume

✨ Highlights

• In terms of the number of bridges:

  • We can see a spike on Nov 8 for USDC and WETH
  • USDC went from ~28% share Before the crash to ~46% share After the crash
  • In the same period, AXL faced a 10% decrease in total share from ~41% to ~31%
  • We can see that WETH had around 2% growth in share After the crash

• In terms of bridges’ volume:

  • We can see a spike in the first three days after starting the crash from Nov 8 to 10 for USDC and USDT, and a huge spike for USDC on Nov 13
  • There is a considerably high volume for INJ on Nov 11
  • USDC went from ~76% share Before the crash to ~86% share After the crash
  • We can see that USDT had around 3% growth in share After the crash

✨ Highlights

• In terms of the number of bridges:

  • We can see some spikes on Nov 8 & 9 from Osmosis, Axelar, Evmos, and Kujir
  • We can see that Kujir had around 2% growth in share After the crash

• In terms of bridges’ volume:

  • We can see a spike in the first three days after starting the crash from Nov 8 to 10 for Terra, Kujir, and Osmosis and a huge spike for Cosmos, Kujir, and Osmosis on Nov 13
  • There is a ~10M $USD volume for Kujir and 5M $USD for Cosmos on Nov 13
  • Osmosis decreased from ~61% share Before the crash to ~36% share After the crash
  • We can see that Kujir had around 25% growth in share After the crash

✨ Highlights

• In terms of the number of bridges:

  • We can see some spikes on Nov 8 & 9 from Osmosis and Axelar
  • We can see that Axelarhad around 2% growth in share After the crash

• In terms of bridges’ volume:

  • We can see a spike in the first three days after starting the crash from Nov 8 to 10 for Axelar and a huge spike for Axelar on Nov 13
  • There is a considerably high volume for Injective on Nov 11
  • There is a ~19M $USD volume for Axelar on Nov 13
  • We can see that Axelar had around ~2% fall in share After the crash
  • We can see that Kujir had around 2% growth in share After the crash

✨ Highlights

• In terms of the number of bridges:

  • We can see some spikes on Nov 8 & 9 from Osmosis=>Axelar, Evmos=>Axelar and Axelar=>Osmosis
  • We can see that Axelar=>Osmosis had around 1% growth in share After the crash

• In terms of bridges’ volume:

  • We can see a spike in the first three days after starting the crash from Nov 8 to 10 for Osmosis=>Axelar and Terra=>Axelar, and a huge spike for Osmosis=>Axelar, Cosmos=>Axelar, and Kujir=>Axelar on Nov 13
  • There is a ~10M $USD volume for Kujir=>Axelar on Nov 13
  • We can see that Osmosis=>Axelar decreased from ~61% share to ~36% After the crash
  • We can see that Kujir=>Axelar had around 20% growth in share After the crash

✨ Highlights

• We Can see a spike on both receiver from IBC_Transfer_IN and the sender into IBC_Transfer_OUT on Nov 8 and 9
• IBC_Transfer_IN receivers reached ~750 and IBC_Transfer_OUT receivers reached ~200 users on Nov 8 After the crash
• IBC_Transfer_IN senders reached ~600 and IBC_Transfer_OUT senders reached ~170 users on Nov 8 After the crash

✨ Highlights

• We can see that with the raise of rumors around the FTX in the first days of November, a considerable outflow came out from the FTX Ethereum wallets
• On Nov 7, the day before the start of a dramatic fall in FTX token named $FTT and the FTX crash, a huge amount of outflow came out from FTX Ethereum wallets
• ==For these outflows, we tracked their addresses in the Satellite bridge transfers and there was not any user that withdrew from FTX and came into Satellite for bridges, as you can see in the below table==
• We saw in the previous section that there wasn’t any bridge path from or even to the Ethereum chain in the the week Before crash and After that

👋 Contact

Discord: MoDeFi#8739

Twitter: @Mo_DeFi