Question

Last week we analyzed how users join pools, single or double-sided, which showed that most users join two-sided. This means that most users are already engaged within the Osmosis ecosystem.

Let's analyze a typical user journey through Osmosis. Analyze the following:

• The most common ways of entering Osmosis (Axelar (Satellite) or elsewhere)
• The most common asset transferred into Osmosis for first transfer

Stay or leave:

• What do wallets do when they first come to Osmosis?
• Join to swap and then transfer that asset out?
• Join to stake OSMO?
• Join to swap and then LP?
• Which assets are most commonly swapped for and transferred out?
• Which assets are most commonly swapped for and then LP'd?

Introduction

Osmosis is a decentralized exchange (DEX) and automated market maker (AMM) protocol for the Cosmos ecosystem. To understand the specifics of Osmosis, it’s helpful for you to know the context of the Cosmos ecosystem upon which and for which it is built. Cosmos is an overarching ecosystem of blockchain networks that can connect with one another as part of Cosmos’ mission to build an “internet of blockchains.” Interoperable decentralized applications (dApps) on these various networks communicate with each other and send tokens and data back and forth via Cosmos’ Inter-Blockchain Communication (IBC) Protocol.

The Cosmos Hub is the mainchain that serves as the central ledger and primary blockchain protocol to connect with other blockchains in the Cosmos Network. It is a Proof-of-Stake (PoS) blockchain built by the Ignite team and uses ATOM as the native token for voting, staking, and transactions. Cosmos also provides a software development kit (SDK) to enable projects and teams to build on its network. Now that we have a surface-level understanding of Cosmos and how it operates, we can dive deeper into Osmosis.

Source:

Methodology

The data provided by Flipside has been used to handle this analysis.

In this analysis, the following steps have been used to handle this investigation:

• Step 1: Identify the newcomers into the Osmosis network and active users of it
• Step 2: The most popular source networks and assets transferred into the Osmosis by various aspects:
  • Count of transactions
  • Count of senders
  • Volume of transfer
• Step 3: First actions determination
  • Select first transaction after transferby ordering transactions by time
  • By selected areas like Swap, Vote, Transfer, Stake and provide liquidity
• Step 4: Most common assets swapped for after transfer into the Osmosis
  • General and overtime analysis
  • Metrics: Count of usage and traders, Volume of trades
• Step 5: Most popular pools used to provide LP after transfer into the Osmosis
• Step 6: Aggregating the outcomes of previous steps to draw a logical conclusion over this investigation

Analysis

Active and New Users of Osmosis Network

Findings

• According to the outcomes, over 7500 unique users are considered as average active users on weekly basis.
• The graph related to the chart of newcomers on the Osmosis network reveals the spike on the second week of March, 2022 with over 42k unique users.
• After Terra collapse the trend of newcomers on Osmosis network decreased as can be seen but from December 19 to 26, 2022 spiked for over 15.4k unique users as newcomers on Osmosis.

Investigation On Source Network and Popular Transferred Assets

Findings

The first part of this section is used to identify the most popular source network for transferring assets into the Osmosis network:

• The Cosmos network is the most popular chain with 22% of transfers into the Osmosis network.
• The bar chart reveals that the Cosmos is the leading source chain from the aspect of unique senders point of view.
• Since start of 2022, the transfers into the Osmosis network from other chains increased as can be seen.
• The domination of Cosmos network is not ignorable according to the over time analysis.

Findings

This part contains the outcomes related to the most popular assets transferred into the Osmosis network from other chains:

• The EVMOS and ATOM are two of the most popular assets transferred into the Osmosis by considering the count of transfers and unique senders points of view.
• The count of senders overtime shown the tremendous grown on transferring assets since second week of October, 2022.
• The cumulative investigation is adopted to find out the trend of popular transferred assets into the Osmosis network from other chains and validate the previous comment.

Investigation On First Actions Done After Transfer Into Osmosis

Findings

This part is used to determine the first actions after transferring assets from other networks into the Osmosis chain:

• The most popular first actions is Transfer and the Swap actions stands on the second rank of actions done right after transferring into the Osmosis.
• The over time analysis represents the domination of Transfer and Swap actions as first action after transferring into the Osmosis network.

Detail Analysis On Most Common Assets Swapped For

Findings

The detailed analysis related to the most common assets swapped for after transferring assets into the Osmosis is provided in this part:

• The OSMO and ATOM are two of the most popular assets swapped for after transferring to Osmosis from other chains from various aspects like, count of swaps, count of traders and USD volume of swaps.
• The users sent their assets into the Osmosis swapped over 140 million USD into the OSMO token.
• The first half of January, 2022 has the highest volume of swaps by users sent their assets into the Osmosis network from other chains.
• The last week of February and first week of March 2022 had the highest count of unique traders among users transferred their assets into the Osmosis.

detail analysis on most common pools used to providing liquidity

Findings

• As expected, the pool #1 (ATOM/OSMO) is the most popular pool that used to provide liquidity after transferring assets into the Osmosis from other chains.
• All of the used metrics has been shown the domination of (ATOM/OSMO) liquidity pools.
• The first week of January 2022 had the highest USD volume of provided liquidity after transferring into the Osmosis from other chains.

Conclusion

By considering the outcomes of this analysis the following statements could be concluded:

• Osmosis is the first decentralized exchange on the Cosmos blockchain; A new generation blockchain that facilitates interoperability between different chains. Unlike most of the past AMMs, this project has provided good facilities and capabilities for liquidity providers so that they can create optimal conditions for themselves.
• The most popular first actions right after transferring into the Osmosis ecosystem are Transfer and Swap actions.
• The Osmosis project is still under development and for now only its Minimum Viable Product (MVP) is available to users. It is expected that in the next updates, the ability to interact with other blockchains outside the Cosmas ecosystem will be added to the Osmosis automatic market maker. The growth and strategy of this project is determined by its native token holders, OSMO digital currency.
• Some of the users swapped their transferred assets into various currencies and the most popular assets are OSMO and ATOM tokens.