Background of Osmosis

• Osmosis is a proof-of-stake IBC blockchain with a decentralized exchange application enabling users to provide liquidity, swap, and stake tokens from across the Cosmos ecosystem.
• The Osmosis Frontier application, which is a full permissionless listing and curation of bridged ETH and CW20 assets, exists alongside the main Osmosis application.
• The native token of Osmosis, Osmo, is used for governance and paying transaction fees for actions performed on the DEX. There are a few points that make Osmosis a unique DEX:
  • Self-Governing Liquidity Pools: In Osmosis, the LP shares are used to calculate the fractional ownership of a LP, as well as the right to participate in the strategic decision making of the LP via governance. To incentivize long-term liquidity commitment, shares must be locked up for an extended period. Longer-term commitments are awarded by additional voting power and additional liquidity mining revenue.
  • Superfluid Staking: A method of staking the OSMO tokens that underlie your LP positions to earn additional rewards. Superfluid staking is at time of writing only available on certain OSMO pools on Osmosis.
  • MEV Resistance: Osmosis was conceived with the goal of Maximal Extractable Value (MEV) resistance at its core and includes several unique solutions to help limit MEV.

NOTE: We use Osmosis schema and [osmosis.core.fact_transactions] table

1 ---> Osmosis daily transaction over the last 4 months

In this section we want to get the number of daily transactions for Osmosis in the last four months

• For do this:
  • We count all transactions in [osmosis.core.fact_transactions] for last 4 month and group them by day

According to the chart above, it can be seen that:

• The number of successful daily transactions on Osmosis is greater than the number of failed transactions
• Succeeded transaction rate 75.8%
• Failed transaction rate 24.2%
• After 2022-05-09, the number of failed transactions has increased significantly
• Interestingly, on 2022-05-12, the number of failed transactions was almost 1.5 times that of successful transactions
• After 2022-05-19, the number of successful and failed transactions has been almost equal, and this is a sign that there is a problem that almost 50% of the transactions have encountered errors.

2 ---> Osmosis daily failed transaction rate over the last 4 months

In this section we want to get the number of daily failed transactions for Osmosis in the last four months

• For do this:
  • We count all transactions in [osmosis.core.fact_transactions] for last 4 month and group them by day where [tx_status = 'FAILED']

According to the chart above, it can be seen that:

• After May 8, 2022, the number of failed transactions has increased significantly

3 ---> Osmosis failed transactions type rate over the last 4 months

In this section we want to what type of transaction results in the most failures the last four months

• For do this:
  • We get all msg_type from [osmosis.core.fact_msgs] for last 4 month and group them by day and msg_type where [tx_status = 'FAILED']

According to the chart above, it can be seen that:

• Failed transactions type are tx, message, coin_received, transfer and coin_spent
• tx transactions type has the most failed [41.7%]

Cause of transaction failed

• We found that for every transaction that failed, the [osmosis.core.fact_msgs] table has four records with almost all tx and message messages.
• So we need to attribute the error to coin_received and coin_spent
• So the cause of the error is related to token transfer and swap in Osmosis
• A major reason for any transaction error (transfer or swap) on any network is heavy traffic and lack of sufficient resources to process that transaction.
  • So one of the solutions to reduce transmission and swap errors on osmosis is to reduce the volume of network traffic and increase processing speed.
• Another cause of osmosis errors is swap fees and gas, which are set in a liquidity pool and vary depending on network conditions, and the amount of tokens required to pay the fee may not be available.