What is the Question?🚨

There are 16 SuperFluid Staking pools currently available on Osmosis (1, 678, 704, 712, 674, 722, 9, 604, 497, 812, 584, 3, 481, 42, 463, 15). What impact would a slashing event have on the OSMO liquidity of these pools?

Analyze the distribution of superfluid-staked OSMO across these pools. Which validators have the most SFS OSMO in total, and per pool?

Analyzed Topics:

1. SuperFluid Pools Staking Actions
2. SuperFluid Validators

Introduction🚩

What is OSMOSIS?

Osmosis is a DEX protocol, which means it uses smart contracts to determine the price of digital assets, to produce liquidity via a peer-to-peer (P2P) methodology, and to exact trades between users. This approach to an exchange platform is known as an AMM — a DEX protocol that prices crypto assets in liquidity pools.

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What is OSMO(Token)?

The Osmosis token (OSMO) is used to vote, stake, and provide liquidity throughout its pools. Superfluid staking, a process novel to the Osmosis protocol, allows users to stake assets to secure the network while simultaneously providing assets in a liquidity pool.

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What is Superfluid Staking?

Superfluid Staking is described as “the biggest addition to Proof of Stake since slashing.” It applies a method by which those who provide liquidity to certain pools can earn additional yield by also staking these bonded assets to a validator for staking rewards.

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What is Slashing?

Slashing describes the process whereby other network participants forcibly eject an offending validator from the Beacon Chain while continuously draining their balance. In the most extreme cases, a slashed validator may lose their entire stake in the network.

Method⚡

In this dashboard i take a look at SuperFluid staking pools and validators and explored their staking activity and also find out who are the top validators on SFS pools and what is slashing event on Osmosis.

For this matter, i used ==Osmosis.core== database provided by Flipsidecrypto and mainly used ==“osmosis.core.fact_superfluid_staking”== table to extract the data and do the analysis.

I analyzed these pools in both over time and overall cases since their launch.

Dashboard made on 2022-12-20

Findings👀

• Pool #1 : ATOM/OSMO was the first pool that launched on Osmosis zone and it was leading the stake transaction for a long time since March until late May.
• Most of the pools experienced a little hype after their launch but none of them last for so long.
• After Pool #722: EVMOS/OSMO launch on July 3th, it accounted most of the daily staking transactions among superfluid pools with an average of over 33% of the whole daily transactions.
• Pool #9: CRO/OSMO is accounting most days staking volume and also in overall, it accounted over 77% of $OSMO staked amount share among SFS pools. This pool by far recorded over 1.9B $OSMO Staked amount while it recorded only 28.3K staking transactions in past 10 months since March 31th and placed in the 7th spot between other pools in terms of staking transactions.
• Second pool after Pool #9 is Pool #1 in terms of $OSMO staked amount with ~402M.
• As we expected, Pool #1 has recorded much more deposits, Withdrawals and net volume than other SFS pools over time because it was more popular and older than others.

2. SuperFluid Validators

1. SuperFluid Pools Staking Actions

Findings👀

• We can see top SFS validators in chart above and even i went more in depth and showed top 10 validators in a pie chart in order of total SFS $OSMO.
• We clearly see that Cosmostation is the biggest validator in SFS pools with over 89M staked $OSMO followed by ShapeShift DAO in the second place with 54.8M and AUDIT.one in the third with 43.8M.
• These 3 validators that i mentioned are accounting over 50% of all staked $OSMO together between other SFS validators.

Findings👀

• In this section i showed top 5 validators of each SFS pools.
• Out of 89M staked $OSMO that belonged to Cosmostation, in here we see that this validator staked 66.8M of it in Pool #1.
• Cosmostation is in the top 5 validators of 12 SFS pools and it seems it is the most active validator and the biggest one as i mentioned earlier.
• Moreover we can see pool #1 has recorded over 150M staked $OSMO while the second pool after pool #1 in terms of staked $OSMO which is pool #678:USDC/OSMO has recorded less than 20M $OSMO over time.

Conclusion💡

• Pool #1 has the highest number of staking transactions among other 15 SFS pools with over 266K staking transactions and accounting over 38% of transaction share among other SFS pools.
• Although pool #9 has recorded only 28.3K staking transaction, but it is in the first place in terms of staked $OSMO amount with over 1.9B in total since its launch on March 31th.
• Cosmostation is the biggest validator on SFS pools with over 89M staked $OSMO and most of its staked amount was in pool #1: ATOM/OSMO followed by ShapeShift DAO in the second place with over 54M staked $OSMO on SFS pools and again like Cosmostation, most of this validator staked amount was on pool #1 too.

Author: Sbhn_NP

Discord : Sbhn_NP#8717

Twitter : Sbhn_np

Instagram : Sbhn_NP

Thanks for your time!

Slashing​

Slashing works by gathering all accounts who were superfluidly staking and delegated to the violating validator and slashing their underlying lock collateral. The amount of tokens to slash are first calculated then removed from the underlying and synthetic lock. Therefore, it is important to select a reputable or reliable validator as to minimize slashing risks on your tokens. At the moment we are slashing at latest price rather than block height price. All slashed tokens go to the community pool.

We first get a hook from the staking module, marking that a validator is about to be slashed at a slashFactor of f, for an infraction at height h.

The staking module handles slashing every delegation to that validator, which will handle slashing the delegation from every intermediary account. However, it is up to the superfluid module to then:

• Slash every constituent superfluid staking position for this validator.
• Slash every unbonding superfluid staking position to this validator.

We do this by:

• Collect all intermediate accounts to this validator
• For each IA, iterate over every lock to the underlying native denom.
• If the lock has a synthetic lockup, it gets slashed.
• The slash works by calculating the amount of tokens to slash.
• It removes these from the underlying lock and the synthetic lock.
• These coins are moved to the community pool.

Source