Question

What does a Daily Active User look like on Osmosis? First, plot out how many DAUs there are on Osmosis. For this exercise, consider a DAU would be any wallet transacting on Osmosis a majority of days every week.

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Once you have the DAUs, what does their activity look like? Do they LP more or swap more? How often do they transfer tokens into Osmosis? Where are these transfers coming from?

✍️ Description of Work

• DAU on Osmosis-active user-

• DAU on Osmosis-Total DAUs-year

• DAU on Osmosis-active user-year

• Top DAUs the high number of transactions - transfers into Osmosis

• Frist , second, third ,top DAUs-transaction

• Active wallet activity

• Number of LP and Swap Transactions

• most swapped by users-daily-week-month-year

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🧠 Methodology

Swap

FROM osmosis.core.fact_swaps

LEFT outer JOIN osmosis.core.dim_labels	

activity active wallet

from osmosis.core.fact_transfers

  where sender in (select wallet from base)

Number of LP and Swap Transactions

from osmosis_users_number_of_days_transacting_per_week
  where number_of_days >= 4  

active user

  from osmosis.core.fact_transactions

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Overview & History

Osmosis is Layer-1, Proof-of-Stake (PoS) blockchain built using the Cosmos SDK that has optimized its design to be a sandbox for automated market makers (AMMs). The chain enables developers to design and deploy customized AMMs by using its various modules and leveraging Osmosis' on-chain governance system. Osmosis' native token, OSMO, grants holders the right to vote on proposed network changes and earn rewards for helping secure the network. Its first application, also called Osmosis, is an AMM that features ATOM and OSMO as its initial base trading pairs. \n History

The introduction of automated market makers (AMMs) ushered in a new era of crypto-economic utility and bonding curve applications. AMMs have become an essential element of DeFi infrastructure, and every new ecosystem must have an exchange with liquidity pools to support basic tokens swaps and the creation of supplementary financial products.

Osmosis is an AMM protocol created using the Cosmos SDK. The project was announced in October 2020 and launched on Jun. 19th, 2021. Its core developers include Sunny Aggarwal, Josh Lee, and Dev Ojha. Osmosis' vision is that rather than aiming for a one-size-fits-all strategy for AMMs and their liquidity pools, it could provide a sandbox for AMM development. The protocol enables developers to iterate on new, customized AMM designs by using the existing liquidity pools and modules already running on the network. It also features an on-chain governance system that allows each AMM pool's stakeholders (i.e. liquidity providers) to control and direct their pools.

Osmosis was the first Cosmos-based chain to popularize IBC transfers. IBC transfers had been available for several months before but there was little actual demand from the connected chains; therefore, the volume of IBC transfers was extremely low. Being the first AMM on Cosmos, Osmosis offered the ability to trade and earn rewards through liquidity provision. The volume of IBC transfers can be found

Token Usage

The Osmo token (OSMO) is a governance token that allows token holders to decide on the Osmosis protocol's strategic direction and future modifications. OSMO is expected to be used primarily for the following purposes (but governance may decide to add or remove some of them):

• Staking: At the consensus level, OSMO is the staking token used by validators and delegators to verify transactions and produce new blocks. These contributors receive inflation rewards for contributing resources to the network.
• Governance: OSMO token holders can participate in on-chain governance by creating and voting for governance proposals. such as allocating liquidity mining rewards for liquidity pools or setting the base network swap fee.

The team and community have also deployed OSMO tokens as part of the network's liquidity mining program. Users can earn OSMO tokens by depositing liquidity into Osmosis pools. Liquidity mining is a popular growth hack for incentivizing liquidity, making AMMs a more attractive venue for traders.

Launch & Initial Token Distribution

Osmosis launched with an initial supply of 100 million tokens. The team airdropped 50% of OSMO tokens to ATOM stakers (based on a snapshot of the Cosmos Hub chain on Feb. 18, 2021). The other half of the initial token supply went to an on-chain treasury called the Strategic Reserve. This allocation will be controlled by a multisig DAO, initially composed of members of the development team. The team intends to expand membership to community members down the line.

According to the team, the DAO should use the Strategic Reserve to provide grants or make strategic investments in projects teams that would improve the adoption of the Osmosis protocol.

Supply Schedule

Unlike most Cosmos SDK chains where tokens are distributed on a per-block basis, Osmosis has daily epochs and releases new tokens at the end of each epoch.

Under the initial token model, new tokens would be released according to a “thirdening” schedule. Similar to Bitcoin’s halving, where token issuance is decreased by half every four years, in Osmosis, the token issuance will be cut by one-third every year.

The thirdening schedule works as follows: In the first year, there will be a total of 300 million tokens released. After 365 days, this will be cut by one-third, and thus there will be a total of 200 million tokens released in Year 2. In Year 3, there will be a total of 133 million tokens released. And so on. This thirdening process will continue until OSMO reaches its maximum supply of one billion.

Newly released tokens will be distributed to a combination of staking rewards, liquidity mining incentives, developer vesting, and community pool according to the following distribution:

• Staking Rewards: 25%
• Developer Vesting: 25%
• Liquidity Mining Incentives: 45%
• Community Pool: 5%

Osmosis governance proposal #2 set the initial liquidity mining rewards schedule. The pools with the most expected TVL received the majority of LP rewards. This schedule and rewards breakdown is subject to Osmosis on-chain governance.

Technology

Cosmos IBC The aim of Cosmos is to construct blockchain bridges that will allow previously isolated chains to connect and communicate. The IBC (Inter-Blockchain Communication) protocol is what's used to create these bridges. IBC is a Cosmos SDK module that chains can integrate and use to bridge to other IBC-enabled chains.

Osmosis adopted and implemented an IBC module at launch, establishing connections with various Cosmos chains in the process, including the Cosmos Hub, Akash, and Iris Network. Users of these chains can send their tokens to Osmosis through IBC channels and provide liquidity to their token's respective pools. The Osmosis team also simplified the IBC transfer process by abstracting the channel creation setup process.

AMM Customizability Osmosis modules allow developers to customize their exchanges and price curves based on various parameters, including swap costs, token weights, and TWAP computation. The network serves as a sandbox for AMMs, where developers can experiment with new time dependencies, volatility indexes, and off-chain oracles as inputs for their product. Project teams can also use these modules to create additional DeFi asset types or protocols like options and dynamic fee markets.

The network allows new developers to leverage existing IBC connections, order flow, and liquidity. Therefore, teams don't have to create and bootstrap liquidity for a new AMM from scratch, eliminating the need to spin up a new AMM for each contract or module upgrade.

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Conclusion

• 4 top Most swapped by users-year

  • Osmo : 150.5955k
  • Atom : 405.9165k
  • Juno : 74.727k
  • USTC : 48.278k

• 4 top most swapped by users-month

  • Osmo : 33.13376k
  • Atom : 29.19388k
  • Juno : 22.62754k
  • USTC : 13.90808k

• 4 top most swapped by users-Week

  • Osmo : 12.0818k
  • Atom : 11.77796k
  • Juno : 8139.589
  • USTC : 6124.604

• 4 top most swapped by users-daily

  • Osmo : 3199.107
  • Atom : 2631.286
  • Juno : 1888.929
  • USTC : 1867.456

• Active wallet activity

  • swap : 2.623957M
  • IBC transfer in : 958.388k
  • IBC transafer out : 744.079k
  • staking : 689.491k
  • Lp providing : 439.182k
  • Vote : 323.754k

• According the Number of LP and Swap Transactions we see the number of swap transaction is more than LP transaction .the high number of swap in may9 the number is 621.112k and the high number of lp in feb28 the number is 153.463k

• Total Number of LP Swap Transactions

  • 2022

    • Number of swap transaction :13.23377M
    • Number of LP transaction : 3.20547M

  • 2021

    • Number of swap transaction :3.510173M
    • Number of LP transaction : 752.677K

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