What is Osmosis?

Osmosis is a DEX blockchain that's a zone of the Cosmos Hub ecosystem, thus making it compatible with networks using the Inter-Blockchain Communication (IBC) protocol, like Terra. Osmosis has a customizable AMM that's different from ones like Uniswap and Curve because it allows users to deploy sovereign liquidity pools. This means that each Osmosis liquidity pool is like an independent decentralized autonomous organization (DAO), where liquidity providers can vote to change the parameters of the AMM formula for their pool.

Introduction:

In this dashboard I am going to be looking at the Osmosis ecosystem across three main metrics. The first I will be looking at is Transactions on Solana which will be looking into how active users have been both overall and overtime and how that is changing. The second metric I am going to be looking at is swaps on the platform, I will be looking at both how much has been swapped as well as what types of assets are being swapped. Finally I will look at staking on Osmosis. I will see what types of staking actions users are taking, as well as taking a look at staking rewards. Overall I plan to break down these base metrics to get a good understanding of where Osmosis has been heading overtime and where it looks like it is going to head into the future.

Methodology:

1. Transactions on Solana:

• Data Collection: Collect data from Osmosis API or other reliable source.
• Data Analysis: Analyze data for total transactions and active users over time. Plot data in a line graph.
• Data Interpretation: Interpret results to understand user engagement on the platform.

2. Swaps on the platform:

• Data Collection: Collect data from Osmosis API or other reliable source.
• Data Analysis: Analyze data for total amount swapped and types of assets being swapped. Plot data in appropriate graphs.
• Data Interpretation: Interpret results to understand the swap activity on the platform.

3. Staking on Osmosis:

• Data Collection: Collect data from Osmosis API or other reliable source.
• Data Analysis: Analyze data for types of staking actions and staking rewards. Plot data in appropriate graphs.
• Data Interpretation: Interpret results to understand staking activity and rewards on the platform.

Overall, the data will be analyzed and visualized to understand the trends and direction of the Osmosis ecosystem.

Transaction Analysis:

The Osmosis ecosystem has seen consistent weekly active users, with numbers ranging between 80k to 90k since July of 2022. This trend has remained unchanged despite fluctuations in market conditions. Transactions on the platform have also remained relatively stable, with weekly numbers hovering around 1 million since August of 2022. The percentage of successful transactions typically falls within the range of 60-80%, although there have been instances where it dipped as low as 7.7% during the week of July 18th. Since the start of 2022, the platform has seen a total of 41.2 million transactions with 175 active users, meaning each user has made an average of 234 transactions over this period. However, only 62.6% of transactions since the start of the year have been successful. These findings provide a snapshot of the current state of the Osmosis ecosystem and its overall performance.

Swaps:

Transactions:

Swap Analysis:

The weekly swap volume on Osmosis has remained relatively consistent since May of 2022, with numbers ranging from 60 million to 140 million. The price of OSMO seems to be closely tied to the swap volume, as they both tend to fluctuate in similar patterns. The average weekly swap volume has also remained relatively stable, fluctuating between 1500 and 5000 since May of 2022. The most popular coins being swapped on the platform are ATOM, USDC, and USTC, accounting for nearly 4.1 billion in total swap volume and making up 74.5% of the top 10 most swapped coins. The popularity of USDC and ATOM has remained relatively stable over time, accounting for around 30% of the top 10 coins being swapped, although there is some fluctuation observed. These findings highlight the trends and popularity of different assets being swapped on the Osmosis platform.

Staking:

Staking Analysis:

It seems that undelegated events are quite popular on the Osmosis platform, accounting for a significant portion of daily volume and sometimes even more than delegated actions. Nearly half of all Osmo staked has been undelegated. In terms of events, there are significantly more delegate events compared to undelegate and redelegate events, indicating that users are delegating in smaller average volumes than they are undelegating and delegating. Since the start of 2022, there have been 10.58 million withdrawal events, with a total of 42.6 million OSMO withdrawn, meaning that each withdrawal event, on average, involved around 4 OSMO. Weekly staking rewards have declined since May of 2022, but have remained relatively stable after their initial drop. These findings provide insights into the behavior of users with regards to staking and delegating on the Osmosis platform.

Conclusion:

• Osmosis has been able to maintain the same amount of active users at roughly 80k weekly since May of 2022 regardless of market fluctuations, highlighting the consistency with Osmosis users. 

• Active users on Osmosis have made an average of 234 transactions since the start of 2022 highlighting consistent activity overtime. 

• The price of OSMO appears to follow the graph for swap volume overtime very closely. 

• ATOM, USDC, an USTC make up nearly 4.1B in total swap volume and 74.5% of the swap volume by the most swap coins on Osmosis. 

• The average volume of delegate events is a fraction of the size of the average redelegate as well as undelegate events. Highlighting users delegate small amounts often and take out large amounts, as well as users that keep delegating tend to delegate more progressively. 

• The average staking reward withdrawn is 4 OSMO

• Staking reward volume has stayed consistent since July of 2022. 

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Overall across all metrics Osmosis is able to maintain a consistent and loyal user base even with current market conditions highlighting that in the long run Osmosis is likely to see great success and growth.

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