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Polkadot

is a blockchain that allows developers to create customized interoperable Parachains. The project was launched in 2006 by Gavin Wood, Ethereum's former CTO and cofounder. Each Parachain connects with the main Relay Chain, allowing them to communicate and share the mainnet's security. A parachain can have its own modified Proof of Stake consensus mechanism, decentralized app development, and tokens. Space for Parachains is limited and regularly auctioned off for DOT.

Polkadot's native token is DOT, which has three primary uses cases:

1. Holders can vote on future project changes through Polkadot's governance mechanism.
2. Users can pay network transaction fees on the Relay Chain and some Parachains.
3. The token is staked to validate transactions. DOT has an unlimited supply making it an inflationary token, and the network pays out rewards to validators equally regardless of stake.

Polkadot's creators argue that their token isn't designed for speculation but instead for the use cases given above.

Polkadot has seen great success in sharing data and information between all its different Parachains, projects, and DApps. Interoperability has been a big issue for blockchains since Bitcoin, and Polkadot was one of the first projects to provide a solution. Polkadot is also scalable, as it can process transactions in parallel across all the different chains in the network.

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What Is Osmosis (OSMO)?

Osmosis (OSMO) is a decentralized exchange (DEX) for Cosmos, an ecosystem of sovereign, interoperable blockchains all connected trustlessly over IBC, the Inter-Blockchain Communication Protocol. Osmosis also offers non-IBC assets bridged from the Ethereum and Polkadot ecosystems. Originally based on Balancer-style pools, Osmosis is moving to a more sustainable concentrated liquidity model that provides a superior trading and liquidity provision experience.

As an appchain DEX, Osmosis has greater control over the full blockchain stack than DEXs that must follow the code of a parent chain. This fine-grained control has enabled, for example, the development of Superfluid Staking, an improvement to Proof-of-Stake security. Superfluid staking allows the underlying OSMO in an LP position to add to chain security and earn staking rewards for doing so. The customizability of appchains also allows for the development of a transaction mempool shielded with threshold encryption, which will greatly reduce harmful MEV on Osmosis.

Osmosis's vision is to build a cross-chain native DEX and trading suite that connects all chains over IBC, including Ethereum and Bitcoin. To build out the trading functionalities, Osmosis has invited external developers to create a bespoke DEX ecosystem that includes lending, credit, margin, fiat on-ramps, Defi strategy vaults, NFTs, stablecoins, and more – all the functionalities of a centralized exchange and more, plus the trust-minimization of decentralized finance.

Methodology

To answer and analyze the reason for the DOT price drop, this dashboard examines the following information:

• Volume and number of tokens deposited

Their daily changes

• Comparison of daily changes of deposit and withdrawal transactions

• Checking the number and volume of swaps for real transactions and arbitrage

• Daily comparison of real swaps and arbitrage

In the first part, our goal is to examine the deposit and withdrawal of tokens as capital from the osmosis blockchain.

We obtained information and drew their analysis with graphs. You can see that the percentage of depositing in this network in terms of different parameters is as follows: deposit volume 72% Number of transactions 85% (4530).

The amount and median for the deposit have also been calculated, and the average amount of token for the deposit was 327 usd.

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To compare between deposit and withdrawal, daily graphs have been drawn which show that the volume and number of deposit transactions are more than withdrawal, and this shows that the desire of users to enter the token in this network is high.

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In this section, important information about arbitrage and real transactions We discuss in this network.

You can see that 76% of the total volume of swaps, which is equivalent to 2003581 usd, 88% of swaps and 99.9% of the total number of swapers, are related to real transactions, and these values ​​show that real transactions have a high share in this network and The fall of the DOT token cannot be attributed to arbitrageurs

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Conclusion

• the percentage of depositing in this network in terms of different parameters is as follows: deposit volume 72% Number of transactions 85% (4530). The amount and median for the deposit have also been calculated, and the average amount of token for the deposit was 327 usd.
• the volume of deposits was at its highest on Aug 16 and is equal to 1649 usd, and the number of transactions on July 30 and 31 is approximately 160 transactions per day and after that it has a downward trend, so that on Dec 12, 15 deposits were made. Is.
• that the volume and number of deposit transactions are more than withdrawal, and this shows that the desire of users to enter the token in this network is high.
• 76% of the total volume of swaps, which is equivalent to 2003581 usd, 88% of swaps and 99.9% of the total number of swapers, are related to real transactions, and these values ​​show that real transactions have a high share in this network and The fall of the DOT token cannot be attributed to arbitrageurs
• volume and number of swaps reached its highest value on Nov 9. But the number of swappers is maximum at the end of July and then decreases. The daily comparison of swaps also shows that a large percentage is made by real transactions.
• In the table below, you can see that only 3 people have done arbitrage

For a more detailed review and a deeper look at the amount of activity in this network, including the volume of daily transactions, the number of daily transactions is shown.

You can see that the volume of deposits was at its highest on Aug 16 and is equal to 1649 usd, and the number of transactions on July 30 and 31 is approximately 160 transactions per day and after that it has a downward trend, so that on Dec 12, 15 deposits were made. Is.

In the table below, you can see that only 3 people have done arbitrage.

Regarding the volume and number of swaps, the graphs are drawn on a daily basis. You can see that their value reached its highest value on Nov 9. But the number of swappers is maximum at the end of July and then decreases. The daily comparison of swaps also shows that a large percentage is made by real transactions.