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Introduction
Osmosis is a DEX protocol, which means it uses smart contracts to determine the price of digital assets, to produce liquidity via a peer-to-peer (P2P) methodology, and to exact trades between users. This approach to an exchange platform is known as an AMM — a DEX protocol that prices crypto assets in liquidity pools.
In this dashboard :
We are going to monitor the daily, weekly and monthly activity of users and according to their activity in different sectors such as swap, liquidity providers, we are going to come to a specific conclusion about which of these facilities are used the most.
What is Osmosis?
Osmosis is an automated market maker (AMM) built with the Cosmos SDK; it specializes in the InterchainDeFi movement (Tendermint-based blockchains) in the Cosmos ecosystem. In other words, Osmosis is a decentralized exchange specifically built for Cosmos, with plans to expand to more blockchains.
How to Use Osmosis
There are a few ways to use Osmosis, and it’s best to follow the money. There are three categories of fees on Osmosis:
- Anyone who transacts on the chain will pay transaction fees. These fees are variable and based on the storage and computation costs, and the minimum gas cost proposed. These fees are distributed to OSMO stakers and validator operators.
- Anyone who swaps assets on the DEX will pay swap fees, which are determined by each liquidity pool’s parameters and trade size. These fees are distributed pro-rata to that pool’s liquidity providers.
- Liquidity providers who pull their liquidity out of a pool will pay exit fees. The LP shares are then burned, and the value is distributed to the remaining liquidity providers.
So, anyone can use the Osmosis DEX functionality to swap IBC-compatible tokens like ATOM, ION, AKT, LUNA, and other compatible chains like CRO.
Osmosis Features
Cross-Chain Native
Osmosis is designed to be cross-chain native, and like many Cosmos projects, it’s built to be IBC compatible at its foundation.
Osmosis plans to branch out to non-IBC enabled chains, such as Ethereum-based ERC20s (via the Althea gravity bridge), Bitcoin-like chains, and alternative smart contracting platforms.
Sovereignty and Unified Incentivization
Sovereignty is a big deal for the Cosmos folks. Osmosis derives its sovereignty from its architecture, as well as from the collective sovereignty of liquidity providers –each LP is incentivized to simultaneously maintain their autonomy and provide liquidity by different mechanisms.
Osmosis is unique within the Cosmos ecosystem (and other DEXes) because it aligns liquidity providers, ==DAO members==, and delegator interests with a variety of incentives. For one, staked liquidity providers have sovereign ownership over their pools, and they can adjust parameters based on market conditions and how competitive the pool is among others. Nothing in the Osmosis Amim is hard-coded– LP providers can vote to change any pool parameter, such as swap fees, token rates, reward incentives, and curve algorithms.
- According to the daily activity of users, the number of 776 people has been recorded every day.
- And also monthly in Osmosis users have used Osmosis 114.5 times in different cases.
- According to the chart, the highest amount of new user logins to Osmosis was recorded on Feb 16 and Apr 23, which shows the figures of 11.6K and 13.2K, respectively, but on other days of the last few months, this trend is normal.
- According to the graph that shows the most popular tools in Osmosis, it can be concluded that the amount of use of Swaps by users is the highest, and Staking Rewards and so on are in second place, which shows that Swaps are the most used in Osmosis. It can be mentioned that the fee is low.
- According to the chart, users have recorded the highest volume of transactions in the last few months with 21.6K on February 28.
- 9.05K users use swap weekly.
- As we can see, in the chart, ATOM ranks first and OSMO ranks second among the 10 famous tokens, which indicates that Osmosis users swap most of these tokens.
- According to the graph on Feb 28, it is exactly the same as the swaps graph, which had taken an upward trend. The same thing happened in LP. The graph reached a weekly figure of 11.6K LP on Feb 28.
Conclusion
Osmosis Users use Swap tool more often or LP?
As we have seen in the reliable and accurate graphs above, we can conclude that in Osmosis, users are more inclined to the swap feature, which shows that Osmosis has provided a good platform for this feature.
Osmosis Future Forecast
Comparing Osmosis against other important technological innovations and trends is one way of predicting where the Osmosis ==price== could head over the ==long term==. The table above shows what the Osmosis price would be by end of year 2023, 2024, and 2025 if its growth trajectory followed the growth of the internet, or large tech companies like Google and Facebook in their growth phase.
Two primary concepts that drive the Osmosis protocol are sovereignty and heterogeneity. To that end, Osmosis makes use of self_governing liquidity pools. These liquidity pools that exist in Osmosis are not hard-coded and users can use the native Osmosis token (OSMO) to vote on pool parameters and protocols, provide liquidity, and stake. Essentially, it allows holders of the token to decide the make-up of specific liquidity pools, in addition to playing a central role in wider Osmosis protocol governance.
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