Overview

Osmosis is an advanced automated market maker (AMM) protocol that allows developers to build customized AMMs with sovereign liquidity pools. Built using the Cosmos SDK, Osmosis utilizes Inter-Blockchain Communication (IBC) to enable cross-chain transactions.

AMMs are typically pools of digital assets managed by a smart contract used to enable decentralized trading. The liquidity pools and smart contracts replace the order book system; liquidity providers lock their assets into the pool and earn fees when people trade in these pools.

There are different type of pools and different modules. One of the most common headhache of liquidity providers is the moment when they have to decide which pool to join and which tokens added. In this line, there are two main type of pools: single-sided pools and dual-sided pools. The first one is when pooler added the same token as liquidity and the second one when both tokens are added.

Methodology

The intention of this dashboard is to show how users are using these type of pools, single-sided and dual-sided. To do that, we will go dive deep in headfirst (add both assets; joinpool) or do they wade in carefully (singleside; join swap extern amount in). Also we are gonna analyze how deep the pool is (typical swap size in token and USD for both activities).

Thus, the metrics to be analyzed are:

• Evolution and distribution of actions by type
• Amount deposited in pools and distribution by type
• Average amount deposited by type
• 7-month moving average by type
• Daily deposits by amount deposited
• Distribution of actions by amount depositedand sided type

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Looking at this first charts, we can see how pool actions started to increase on both sides from January 2022, reaching a peak of around 640k monthly actions in March 2022, coinciding with the month when LUNA crashed, and many of its users migrated to Osmosis. Then the activity dropped again until it stabilised. Since June the numbers seem to be similar, around 100k shares.

If we look at the distributions by pool type, we can see that during the beginning, most of the liquidity actions were in favour of dual-sided, but little by little users do they wade in carefully singleside by join swap extern amount in, going from having less than 1% of the shares to currently having more than 60%.

However, if we look at the volume, we can see that in this case it has been in favour of dual-sided from start to finish. In this case, the distribution has also increased for single-sided from less than 1% to between 15 and 25%.

As far as the average deposited volume is concerned, we can also see that it is higher for the dual-sided, but we can see that the 7-month moving average has decreased a lot for the dual-sided, but for the single-sided it has increased little by little. Now, they seem to be much closer than in the first months.

In this other batch of charts, we can see the monthly deposits as a function of the aggregate volume range. We can again see how more deposits were executed during the months of January to April 2022. It now looks like the number of deposits has consolidated. Looking at the distribution, we can see that since the beginning, the largest percentage has been for deposits of less than 100 USD, and furthermore, we can see that since the last few months this group has gained prominence from less than 70% to currently over 84%. A curious fact is that deposits of more than 10k USD seem to have decreased a lot and are practically null.

On the other hand, if we look at the type of deposits in pools (single-sided vs dual-sided LP), we can see that there are more of each group in the dual-sided than in the single-sided. However, what about the distributions? In this case we can see that the percentage of deposits below 100USD is higher for single-sided. In fact, in general we can see that users who deposit in single-sided tend to do so in smaller deposit sizes than in dual-sided.

Key insights

• Pool actions started to increase on both sides from January 2022, reaching a peak of around 640k monthly actions in March 2022, coinciding with the month when LUNA crashed, and many of its users migrated to Osmosis. Then the activity dropped again until it stabilised. Since June the numbers seem to be similar, around 100k shares.

• During the beginning, most of the liquidity actions were in favour of dual-sided, but little by little users do they wade in carefully singleside by join swap extern amount in, going from having less than 1% of the shares to currently having more than 60%.

• The volume and average deposited to the pools are higher for the dual-sided, but we can see that the 7-month moving average has decreased a lot for the dual-sided, but for the single-sided it has increased little by little. Now, they seem to be much closer than in the first months.

• Since the beginning, the largest percentage has been for deposits of less than 100 USD, and furthermore, we can see that since the last few months this group has gained prominence from less than 70% to currently over 84%. A curious fact is that deposits of more than 10k USD seem to have decreased a lot and are practically null.

• There are more of each group in the dual-sided than in the single-sided. But the percentage of deposits below 100USD is higher for single-sided. In fact, in general we can see that users who deposit in single-sided tend to do so in smaller deposit sizes than in dual-sided.

  
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