Exploring the ARB Token on Osmosis DEX
What is Arbitrum?
The Arbitrum network is a layer-2 functionality, developed by the New York-based company Offchain Labs, which seeks to solve the congestion that the Ethereum network has been experiencing by improving how smart contracts are validated. The platform leverages the security provided by the Ethereum mainnet but allows smart contracts to run on a separate layer to reduce congestion within the network. This technique is called ‘transaction rollups’ (explained in some detail by the developers here) and consists of batches of transactions and records that are validated on the lower layer to then be moved to layer-1’s mainnet – in this case, the Ethereum mainnet. Arbitrum compensates nodes that actively validate the smart contracts powered by the Arbitrum chain (known as aggregators) with ETH and they are responsible for adding the blocks to the first layer – the Ethereum mainnet.
What is Osmosis
Osmosis is an automated market maker (AMM) built on Cosmos that enables cross-chain transactions through Inter-Blockchain Communication (IBC). This gives the protocol an added layer of interoperability and composability. Unlike most existing AMMs, Osmosis is deeply customizable and allows developers to leverage many different changeable parameters to build truly unique AMMs that can dynamically fit a variety of outcome goals. Ultimately, Osmosis enables developers to design and deploy custom AMMs that can quickly adjust to changing market conditions and allow market participants to decide which iterations provide the most optimal results, rather than relying on the protocol itself.
This bounty aims to analyse the recent listing of the ARB token on the Osmosis DEX, with a primary focus on liquidity incentives and pool activity between ARB/OSMO. Furthermore, we will delve into the dynamics of ARB token holders, transfers, and user behaviour on the Osmosis network. We are particularly interested in whether ARB token users, in terms of swapping and liquidity providing, are new to the Osmosis DEX or are existing users. Additionally, my dashboard designed to update with future data and be capable of comparing the launch and incentives of ARB token with a previous token launch on the Osmosis blockchain.
