Try Quests to earn cryptoBurn the House Down
Q8. Find the week that the largest volume of OSMO burning happened. What caused this event? Show some of the events that this burning had on the Osmosis ecosystem.
Introduction:
Osmosis is a decentralized exchange built on its own sovereign, interoperable Layer-1 blockchain in the Cosmos ecosystem.
According to my investigation, the burn action happened on two cases as below:
- Some ibc transfer to another blockchain like, when send Juno (IBC/46B44899322F3CD854D2D46DEEF881958467CDD4B3B10086DA49296BBED94BED) from Osmosis to Juno.
- By exiting the liquidity pool that contains Osmo: In that case, the Osmo token is burnt by withdrawing liquidity.
Both of these cases are investigated and taken place in this dashboard.
Methodology:
According to the cases that introduced in the introduction section, the methodology of each case shown as below:
- Burn action from events --> from osmosis.core.fact_msg_attributes and set MSG_TYPE='burn'
For this case, you can join transfer table and find the exact amount. but unfortunately I could not found burn msg type with OSMO burning as currency.
- LP withdrawal from pools -> from osmosis.core.fact_liquidity_provider_actions and set ACTION='pool_exited' and CURRENCY='uosmo'
As mentioned by withdrawing liquidity from LP pools contains OSMO, the OSMO token is burnt. By considering this, the weekly burn of OSMO is shown in the bar chart. The line stands for the number of burns and bar shows the volume of burnt OSMO token.
As shown in this figure, the highest volume of OSMO burnt happened on week linked May 9 to 16 with 18.8 million OSMO. We know that the May 9 was the start of break point in the market downturn and people wants to withdraw their liquidity form LP pools.
The most used pools for burning OSMO by removing liquidity is shown in this bar chart.
As shown in the chart and by the use of this reference, the most used pools for burning OSMO are Atom/OSMO, USTC/OSMO and LUNC/OSMO.
The results related to the setting burn action on MSG_type is shown in this bar chart. The results are shown in the weekly basis.
As shown in this bar, the highest burn actions happened on week that linked May 7 to 14 with more than 190k burns.
By analyzing some of the transactions that cause burn on MSG_type, found that the ibc transfer between chains caused burn as type of MSG.
The second chart illustrates the top 5 weeks with most burn actions on Osmosis. Based on this chart and extra investigation, on month May the number of ibc transfers to Juno was more than other months and this cause a lots of burns on Osmosis.