Introduction

EVMOS

Evmos is an Ethereum Virtual Machine (EVM) hub that launched on the Cosmos blockchain in April after years of development. The layer one blockchain allows users and developers to deploy smart contracts and assets from Ethereum for use in the Cosmos ecosystem [1].

Osmosis DEX

Osmosis is an advanced automated market maker (AMM) protocol that allows developers to build customized AMMs with sovereign liquidity pools. Built using the Cosmos SDK, Osmosis utilizes Inter-Blockchain Communication (IBC) to enable cross-chain transactions [2].

What’s in this dashboard?

In this dashboard, we analyze the LP and trading activity of EVMOS in Osmosis. We’ll look at trends in key metrics such as TVL, trading volume, active wallets (LPs and traders), and user growth.

Conclusion

In summary, we have observed the following:

1. From reaching a peak on Sep 17 to dropping towards the end of September, liquidity in the EVMOS/OSMO pool has started to recover this month of October, largely driven by EVMOS’ price volatility.
2. Liquidity provision into the EVMOS/OSMO pool has slowed down and plateaued in the past week and is seeing a net outflow of liquidity.
3. While the total number of LPs is still growing, the number of new LPs per day has decreased recently.
4. Trading volume in the past few weeks has been slowly decreasing day-to-day, driven by less active traders per day and generally lower trading frequency per day.
5. The halting of the Osmosis chain last Oct 3 appears to have negatively impacted trading frequency and the number of daily active traders.

Methodology

1. Pool liquidity is tracked using LP actions from osmosis.core.fact_liquidity_provider_actions.
   • For this analysis, we’ll focus on the EVMOS/OSMO pool (Pool #722).
   • Using the ratio of LP tokens minted vs EVMOS/OSMO deposited, we can estimate the pool reserves, and together with price info, the pools total liquidity or TVL at any date.
   • We’ll also track LP positions per liquidity provider (wallet) to monitor the number of active LPs.
2. Next, trading activity is tracked using swap transactions from osmosis.core.fact_swaps.
   • From this data, we’ll calculate trading volume, number of active traders, and the average transaction size.
   • We’ll further break down trading activity by EVMOS swap direction (buy or sell) and which tokens are traded to/for EVMOS.
3. For most of the dashboard, we’ll use trend charts (bar/line) to track changes and trends in LP and trading activity. Specifically, we’ll narrow down activity in the past week and compare it to previous periods.
4. Lastly, we’ll highly any significant events which appear to have an impact on LP and trading metrics.

In the last 1 week, the amount of ATOM (in USD) has generally been volatile. Despite some recent upwards price action of ATOM, on Oct 7, nearly $80 million ATOM were sold on Osmosis DEXs (centre and right plot above). This also implies that more ATOM were bought off-chain such as transactions on centralized exchanges (CEXs), such as Binance.

The number of unique swappers initiating buy transactions exceeded those initiating sell transactions, in keeping with the upwards price of ATOM in the last 1 week. Together with the fact that more ATOM tokens have been sold on DEXs in the last week, these data indicate that there are more traders buying ATOM at smaller volumes, while fewer sellers are selling higher volumes of ATOM tokens.

According to the charts above, over the past week, ATOM was the most popular asset in terms of swap count to swap from EVMOS to it. But relative to flow, USDC was the most popular asset. In total, ATOM, OSMO and USDC are the 3 most requested parameters by EVMOS.

Pie charts above which shows total volume and total number of Liquidity pool transactions of OSMO with their distinguished LP actions we can see that number of joined transactions were 5.18 times of number of exited transactions in last 15 days and volume of joined transactions were 2.02 times of volume of exited transactions in last 15.

So users tend to deposit assets into LPs more than exiting assets from LPs.

Bar chart above which shows volume and number of transfers of OSMO we can see that both had decreasing trend since last 15 days and in last week time frame it halted on Oct third and on the next 2 days on Oct fourth and fifth we see an uptick then decreases.

Number of transfers of OSMO spiked 3.03 times on Oct 5th compared to Oct 3rd

Volume of transfers of OSMO spiked 2.01 times on Oct 5th compared to Oct 3rd

Looking at the chart on the left, the EVMOS token has increased in value by almost 25% over the past week (from $1.39 on 4 October to $1.74 on 8 October).