Try Quests to earn cryptoPool of The Week
Overview 👀 ~ 5 min read
In this dashboard, I will answer this question from Flipside Crypto:
Since the start of November, the Osmosis Support Labs team has run the Pool of the Week program, highlighting important and/or new pools within the ecosystem. What kind of impact has this program had on the liquidity of these pools?
\n
Track LP volume in and out of these pools based on the following dates:
- 11/11/22 Pool 833 - stOSMO / OSMO
- 11/15/22 Pool 837 - IST / OSMO
- 11/22/22 Pool 840 - BNB / OSMO
- 11/29/22 Pool 634 - wETH.grv / OSMO
For each pool track from date above to present.
Introduction 💭
Guide to Osmosis
- Osmosis is a proof of stake (PoS) blockchain with a decentralized exchange application enabling users to provide liquidity, swap, and in the future natively stake the tokens of blockchains from across the Cosmos ecosystem.
- Osmosis serves as an automated market maker (AMM) that connects to other Tendermint‐based blockchains, creating a heterogenous and interoperable cross‐chain trading experience for users.
- Run your own dedicated Osmosis validators with Coinbase Cloud to actively secure the network. Clients can earn participatory rewards through self‐staked tokens and may also earn fees through tokens delegated to their validators.
- OSMO holders can delegate their assets to Coinbase Cloud's public validator to earn a share of participatory rewards
** \n An introduction to Osmosis**
Osmosis is a proof of stake blockchain that serves as an automated market maker (AMM) protocol for the Cosmos ecosystem. AMMs are typically pools of digital assets managed by a smart contract used to enable decentralized trading. The liquidity pools and smart contracts replace the order book system; liquidity providers lock their assets into the pool and earn fees when people trade in these pools.
Unlike typical smart contract‐based AMMs, Osmosis is built using the open‐source Cosmos SDK. Osmosis’ goal is to enable developers to customize and deploy AMMs in the Cosmos ecosystem and to innovate in liquidity pools by using Osmosis’ governance processes and interoperable builder toolkit. OSMO, the native token of Osmosis, is used for governance and paying transaction fees.
The Cosmos ecosystem has a vision of full interoperability between Tendermint‐based chains. To reach this goal, the Inter-Blockchain Communication Protocol (IBC), a protocol for relaying messages between independent distributed ledgers, was created to connect Tendermint‐based blockchains to one another. Osmosis users can provide liquidity, swap, or stake the native tokens of the blockchains that use the Tendermint IBC, with Osmosis serving as the liquidity gateway into the Cosmos ecosystem by enabling IBC deposits and withdrawals from one simple interface.[1]
Methodology 🧠
To solve this question, I first needed the price of the tokens so that I could compare the volume of dollars in days I got the price of the stOSMO token from the osmosis.core.dim_prices table, which is the same as OSMO, and I got the prices of the WBNB and WETH tokens from the ethereum.core.fact_hourly_token_prices table IST token was a stablecoin and its price was not in the tables, so I entered the price manually Join Pool and Exit Pool in osmosis are done in two ways:
- single side 2. add both assets For the single side, the events recorded in the osmosis.core.fact_liquidity_provider_actions table were pool_joined and pool_exited, but the Join Pool token may be different, which is specified in the CURRENCY row of this token with the contract. For add both assets, two events lp_tokens_minted and lp_tokens_burned are specified and the name of the pool is listed in the CURRENCY row. For this analysis, I compared the performance of the tokens at the specified time to date with their performance in October
🕵️♀️ observations
- With the new update, the pools have improved and the number of transactions per day has reached 800 transactions. In addition, the transactions have become more diverse, which in itself is a reason for the increase in the number of users. You can see this increase in the graph of the daily number of users
- In the stOSMO / OSMO pool, there is more activity in November than in October, while the wETH.grv / OSMO pool has more activity in October.
- The only pool among these 4 pools in October where users were depositing cash in the form of Double LP was the wETH.grv/OSMO pool.
🕵️♀️ observations
- The new update of the pools has not only caused an amazing growth in the number of users and transactions and the amount of dollars deposited, but also the transactions have become more diverse.
- stOSMO/OSMO has grown the most among other pools.
- Another point that can be mentioned is that the volumes that are withdrawn from these pools have decreased compared to October and users have shown more interest in investing.
🕵️♀️ observations
- The general information from the new update in November shows us that in terms of the number of transactions in November, stOSMO / OSMO pool is the first place. IST / OSMO second place wETH.grv / OSMO third place BNB / OSMO has the last position
- Another thing that can be seen is that users tend to deposit more of their OSMO if they enter the pool as a single side.
Appendix 🤝
The solution of this question and the queries are completely used from the filipside database
The construction of the dashboard was also used from the site
app.flipsidecrypto.com/velocity, which belongs to flipside
Conclusion 🎉
- The number of transactions of the pools in question were very few in October, and in November (after the update), their number increased and we saw more diverse transactions.
- The number of users has increased significantly in November compared to October
- The only pool among these 4 pools in October where users were depositing cash in the form of Double LP was the wETH.grv/OSMO pool.
- stOSMO/OSMO has grown the most among other pools.
- In October, users have withdrawn more than 1 million dollars, but this number is less than 200 thousand dollars in November, which shows that users are more interested in investing.