FIRST TRANSFER TO A NEW OSMOSIS ADDRESS

DASHBOARD SCOPE

This dashboard will analyse how new users started their journey in Osmosis in 2022, with the following approach:

• First, I will take a look at how new Osmosis addresses are funded. I will analyse both IBC external transfers and internal transfers from other Osmosis addresses. I will use weekly number of users and volume in usd as metrics and will separate by origin chains and assets.

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• Then, I will investigate what are the addresses using these funds for in their first transactions

Definitions

• New Osmosis address: each address created in the Osmosis protocol, starting with ‘osmo…’
• First transfer: first transfer of an asset to a new Osmosis address according to core
• First transaction: first signed transaction of a new Osmosis address
• New active address: new Osmosis address after signing the first transaction

WHAT IS OSMOSIS?

Osmosis is an advanced AMM (automated market maker) protocol which provide developers and users with tools to build customized AMMs and launch liquidity pools, defining parameters like bonding curves and enabling multi-weighted asset pools.

It is built using the Cosmos SDK and uses IBC (Inter-Blockchain Communication), which enables cross-chain communications within the Cosmos Ecosystems and some EVM-compatible chains thanks to Axelar Satellite.

Aside from swapping their assets and creating or participating in a liquidity pool, users can use the native token, $OSMO, to delegate to a validator (staking) or participate in the governance of the network.

Osmosis was launched in June 2021 and airdropped 50% of the initial $OSMO supply to to ATOM stakers. The other 50% was allocated to an on-chain treasury controlled by a mutisig DAO.

Sources:

FIRST TRANSACTION FROM NEW OSMOSIS ADDRESSES

FROM IBC CHAINS

A total of 14M USD were transferred to 274k new addresses in Osmosis from other IBC chains as first transfer.

The most popular origin chain in USD volume and number of users is Cosmos, with ATOM as the most popular asset in USD volume and the second in number of users. This is caused by over 90% of the users transferring an unlabelled asset (from osmosis.core.dim_tokens and osmosis.core.dim_labels tables). This is most probably caused by users checking the cross-chain transfer with low-value or meme asset before commiting more valuable ones.

The next IBC chains in terms of USD volume are Axelar (14.3%) and Terra (3.8%). The former represents a current trend, where Axelar is becoming the go-to interchain bridge between Cosmos Hub and Ethereum- VIrtual Machine protocols. The latter represents the importance of Terra in terms of 2022 performance despite the UST collapse in May - this means 3.8% of the total volume transferred in a year achieved in only 4 months! In terms of number of users, Terra accounts for 4.8% and Axelar just short of 1%.

Other Cosmos Chains make it to the top 10 - Secret, Evmos, Emoney, Juno, Umee… SCRT and EVMOS are the only two native tokens from this list that have significant USD volume with 2.9% and 2.3% respectively.

FROM OTHER OSMOSIS ADDRESSES

A total of 104M USD were transferred to 300k new addresses in Osmosis from other Osmosis addresses.

Not surprisingly, the most popular asset in USD volume and number of users is OSMO with over 90% dominance in both metrics. Only NGM, e-Money’s native token used for staking and as a rewards token, shows some significant numbers. Each of the other assets account for less then 5% combined.

What happened on the week of March 28th?

On April 1st, two addresses transferred almost 42M USD in two transactions:

• osmo12ha9qrxwtrh7ljvtdx32ec74e3c9aemce0wegw transferred 25.8M USD OSMO to osmo1uc6d5lr7q2rcx3yp97ugytpwcnuw2gy2qfvnl6
• osmo1uc6d5lr7q2rcx3yp97ugytpwcnuw2gy2qfvnl6 transferred 16.1M USD OSMO to osmo1mapky4rfr9008vk48jv3zpyv5x3yc4lqcz6xt9. Additionally, osmo1uc6d5lr7q2rcx3yp97ugytpwcnuw2gy2qfvnl6 transferred 12.6M USD in OSMO to other 7 new addresses

These are the top 2 funding addresses for new addresses in Osmosis ever!

KEY TAKEAWAYS

FIRST TRANSFERS

• With similar number of new addresses, transfers from outside Osmosis transfer around 12% of the USD volume compared to transfers within Osmosis.
• Cosmos is the most popular chain for IBC transfers with its native token ATOM accounting fro 68% of USD volume and 60% of the users.
• Axelar is gaining traction as a liquidity channel for Osmosis (14% of total USD volume in 2022)

FIRST TRANSACTIONS

• Most popular actions for newcomers are Swapping, Staking and providing Liquidity (LP) overall, although there are trends with high activity periods like Governance in April.
• The most commonly swapped for and transferred out assets are JUNO and ATOM, transferred to Juno and Cosmos respectively,
• The most commonly swapped for and then LP’d asset is OSMO

WHAT HAPPENS AFTER USERS SWAP ASSETS?

After users swap, the most popular action by USD volume is LP and more users just don’t perform an additional transaction after swapping. Note that the volume in referring to the amount of the token swapped for. Most popular asset swapped for LP is OSMO in both metrics by a landslide. For assets transferred after swapping, the breakdown is more evenly distributed with JUNO and ATOM being the most poopular ones.

TOP 3 MOST COMMON FIRST TRANSACTIONS

SWAPS then LPs

SWAPS then TRANSFER OUT

Users most common action after entering Osmosis is a swap - it was the first signed transaction for a total of 322k new users. Staking (99k) and LP (35%) complete the Top 3. On the time series, we can identify periods of high activity on other types of transactions like the Governance Period in March and April, increased transfers out in August and September and a exponential activity for transactions not labelled in Flipside.