Introduction:

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. 

Think of Cosmos as the sandbox, and Osmosis as something that can connect all the various dApps. As a DEX, Osmosis nurtures a heterogeneous and interoperable cross-chain trading experience. 

Osmosis is currently the most dominant, accounting for roughly 40% of the total inter-blockchain transfers on Cosmos. IBC compatible blockchains (such as Cosmos, Regen, Akash, and more) can be seamlessly swapped on Osmosis, with fees generally under $1.00.

To best understand the Osmosis value proposition, it’ll help to first explore the Cosmos ecosystem and some DeFi & DEX basics. Osmosis is a product by Osmosis Labs, founded by Sunny Aggarwal and Josh Lee.

While Osmosis Labs Pte. Ltd. ( “Osmosis Labs” ) is responsible for most of the initial code development for the Osmosis protocol, the Osmosis project is actually run by a decentralized validator set. Every upgrade and modification to the protocol is voted on and carried out by the Osmosis community (holders of the OSMO governance token.) 

As such, no single entity involved in Osmosis is legally liable for claims or damages, hence the “decentralized” nature of the protocol. 

Methodology

> I have used

> osmosis.core.fact_transactions > > osmosis.core.fact_transfers > > osmosis.core.dim_labels > > osmosis.core.fact_staking > > osmosis.core.fact_staking_rewards > > osmosis.core.fact_swaps > > osmosis.core.fact_governance_votes

> to get the charts, tables and data above. > > and

caategory ('tx','proposal_vote', 'delegate', 'ibc_transfer','lock_tokens','token_swapped', 'add_tokens_to_lock', 'pool_joined')

To create this dashboard, I got help from the codes of my analyst friend Hamed(())

QUSTIONS

What does a Daily Active User look like on Osmosis? First, plot out how many DAUs there are on Osmosis. For this exercise, consider a DAU would be any wallet transacting on Osmosis a majority of days every week.

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Once you have the DAUs, what does their activity look like? Do they LP more or swap more? How often do they transfer tokens into Osmosis? Where are these transfers coming from?

analysis

description

• Osmosis is a Cosmos-based blockchain that disrupts market making by cutting out the middleman.
• As the leading decentralized exchange on the Cosmos Internet of Blockchains, Osmosis has a head start over competitors.
• Osmosis is backed by a talented software developer team, and it has secured venture funding and support services from highly regarded investment funds.
• Osmosis continues to innovate, with plans to introduce front-running protection through an encrypted transaction queue later this year

description

Decentralized exchanges are one of the proven use cases of blockchain technology. A decentralized exchange enables investors to swap digital assets without an intermediary, such as a broker, in the middle of the transaction. Eliminating the middleman was the founding principle of Bitcoin (BTC-USD) and the decentralized finance (DeFi) movement that followed. Today, numerous decentralized exchanges exist across blockchain-software platforms. Decentralized exchange trading volumes sometimes rival centralized exchanges, such as Coinbase or Binance. Osmosis (OSMO-USD) is the leading-decentralized exchange on the Cosmos (ATOM-USD) blockchain ecosystem, which is designed to become the Internet of Blockchains.

description

In traditional finance, market making is done by professionals working at banks, brokerages, and proprietary trading desks. These middlemen provide liquidity and execute trades on behalf of investors in exchange for earning the difference or "spread" between the bid and ask (i.e., buy and sell) price of an asset. Market makers ensure liquidity and thus a on the buy and sell sides of the market, facilitating the experience for investors.

description

The open, permissionless nature of blockchain has revolutionized market making for crypto assets. Automated Market Makers (AMM), including Osmosis, use open-access liquidity pools instead of traditional, permissioned-access order books to provide liquidity and execute trades for investors. Users who provide liquidity receive the trading fees generated by the liquidity pool (LP), which is represented by an LP token (i.e., a receipt for providing liquidity into the pool). Below is a visual depiction of how these liquidity pools work, using Ethereum and a generic Ethereum-based (ERC-20) token as the trading pair

description

Osmosis is a layer one (i.e., base layer) blockchain with its own validator set that secures the chain through Proof-of-Stake consensus. Proof-of-Stake is environmentally friendly compared to the Proof-of-Work system used by Bitcoin and Ethereum. The Osmosis asset is used for staking to secure the network, on-chain governance, and transaction fees. Osmosis offers interoperability with other blockchains using IBC and Axelar. Osmosis seeks to compete directly with the user experience of centralized exchanges, such as Coinbase which is the core technology of Cosmos. Tendermint is one of the most widely used consensus engines in blockchain software. Mr. Aggarwal previously created a validator company, named Sikka, in Berkeley, Calif. Mr. Lee developed Keplr, which is the leading Cosmos-based, self-custodial wallet. Today, Osmosis Labs develops and supports Keplr in addition to Osmosis.

Conclusion

Osmosis is open-source software built using the Cosmos Software Development Kit (SDK) under the Apache 2.0 License. Unlike Bitcoin and Ethereum, Cosmos-based chains offer fast, environmentally friendly, low-cost transactions through Proof-of-Stake consensus. All OSMO holders may delegate their tokens to Osmosis network validators, who stake the tokens on a holder's behalf. Staking secures the network.

Delegation is required to participate in on-chain governance and earn staking rewards, less a validator commission. If OSMO holders who delegate do not vote, they inherit the vote of their validator. Staking rewards can be claimed at the end of each daily epoch. OSMO stakers receive daily staking rewards from token emissions over the nine-year schedule and transaction fees indefinitely.

Analyzer

Discord: superfly#5104

Twitter: superfly_5104

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