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.

In this dashboard we are gonna explore the failed transaction rate on Osmosis over the past 4 months, trying to detect the main causes of it and providing some recommendations to mitigate it.

Results

The first chart shows the succeeded and failed transactions over the past 4 months in a daily basis. We can see how the amount of total transactions increased from January to March. However, it started to decreased in the finals of the months just after the highest peak around 725k transactions. Then , the downtrend was reversed again in May 6th, when the daily number of transaction spiked until reach its ATH on May 12th. Now, it seems like the amount of transactions remains higher than the first number of transactions registered during the first period of the analysis.

In terms of succeeded vs failed transactions, it can be seen how the trends looks similar during the first period of the study, when the number of transactions increase the amount of failed transactions seems to increase as well but in the same rate as succeeded transactions, and on the other way around. During the highest period of activity, coinciding with the UST depegging, the amount of failed transactions increased dramatically, in a higher way than succeeded transactions. Then, it seems like the increase in activity affect the number of failed transactions. In fact, if we take a look at the second chart about rates, we can see the difference between normal activity and abnormal activity. When the UST depegging occurred and the Osmosis activity increased, the rate of failed transactions increased a lot surpassing at some point the rate of succeeded transactions.

Taking a look at the daily failed transactions by type, we can see firstly the big increase during the 2nd week of May and how the higher failed transactions remained during the next days. The most common type of transacitions is the tx, involving the transactions related to Osmisis network, however, in percentage the other type of transactions increased more than it. The basic fails are: transfers, coin spent or received and messages.

In terms of failed rate, the major rate was registered by tx type, overpassing 0.5 at some points, Transfers, coin spent and coin received show similar rates, reaching 0.3 approx during the UST depegging. Finally, the lowest rate is shown by message transactions.

The last chart shows the positive relationship between the number of failed trasnactions and the rate of failed transactions, showing that when more activity in Osmosis, more failed rate is achieved.

Conclusions & Key insights

In this dashboard, we have analyzed the failure rate of transactions on Osmosis network and compared with the activity on it. The main insights are:

• The failure rate was low during the major of the time, but increased a lot when the activiyt on Osmosis increased due to UST depegging
• Common type of failed transactions are tx, followed by coin spent, coin received and transfers
• There is a positive relationship between the number of failed trasnactions and the rate of failed transactions, showing that when more activity in Osmosis, more failed rate is achieved.