Introduction and methods

Osmosis is a network, developed through the Cosmos SDK (software development kit), using the infrastructure provided by this giant, which seeks to be a bridge between the different blockchains of this ecosystem. In addition, it provides service to projects connected through the Interblockchain Communication Protocol (IBC).

At the same time, Osmosis is an AMM (Automated Market Maker), that is, a decentralized exchange, in which we can exchange coins from the networks to which it connects.

One of the main pecularities of Osmosis is its burning mechanism. When some tokens exits the network, it literally be burnt in terms of OSMO. As well, when some LP is withdrawn from a pool, the LP tokens are burnt as well.

In this dashboard we are gonna explore the week when the largest volume of OSMO burning happened and we explore as well what event caused it.

Results

If we analyze the burnings by week, we can see how the major burning in terms of OSMO occurred during the last week of January 2022 followed by the final week of February 2022 and the third week of January as well.

Taking a loook at why this burning could be caused, I have explored the different origin of the burns. In this case, we can see how ther are basically three main different situations that are causing the burns:

• The LP tokens are the main reason
• The ibc/7A08C6... have a similar impact to LP tokens
• The ibc/46B4489 are also important in this case

Key insights

• THe major burning week was the last week of January 2022.
• The LP tokens are the major cause of the burning situations.