what is osmosis

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 is currently the most dominant, accounting for roughly 40% of the total inter-blockchain transfers on Cosmos. IBC compatible blockchains (such as Cosmos, Regen, Akash, and more) can be seamlessly swapped on Osmosis, with fees generally under $1.00.

To best understand the Osmosis value proposition, it’ll help to first explore the Cosmos ecosystem and some DeFi & DEX basics.

1. Cosmos: Cosmos is an “Internet of Blockchains” network in which developers can build interoperable dApps. In the ideal Cosmos world, Ethereum apps will play nicely with Binance Smart Chain apps, and so on. But for now, projects that adhere to the IBC (below) will be able to seamlessly communicate with each other and send tokens for minimal transaction fees.
2. **The __IBC __**is a protocol that relays messages between various independent distributed ledgers. It was initially created to connect Tendermint‐based blockchains.
3. TC is a Byzantine-Fault Tolerant engine for building blockchains. It allows developers to write their applications in any language, and then replicate the app globally. There is no need to wait for transaction confirmations; a transaction is immediately finalized once included in a block.
4. Automated Market Maker (AMM): This popular DEX protocol relies on algorithms to price cryptocurrency assets in liquidity pools, filling the role of a centralized market maker in an order-book method platform.

Sovereignty and heterogeneity are two key pieces of the Cosmos (and Osmosis) mission, and you’ll see them echoed in almost every feature.

Technically speaking, Osmosis is a proof-of-stake blockchain with a decentralized exchange application, specifically designed for IBC

Cross-Chain Native

Osmosis is designed to be cross-chain native, and like many Cosmos projects, it’s built to be IBC compatible at its foundation.

Osmosis plans to branch out to non-IBC enabled chains, such as Ethereum-based ERC20s (via the Althea gravity bridge), Bitcoin-like chains, and alternative smart contracting platforms (via custom pegs.)

Sovereignty and Unified Incentivization

Sovereignty is a big deal for the Cosmos folks. Osmosis derives its sovereignty from its architecture, as well as from the collective sovereignty of liquidity providers –each LP is incentivized to simultaneously maintain their autonomy and provide liquidity by different mechanisms.

Osmosis is unique within the Cosmos ecosystem (and other DEXes) because it aligns liquidity providers, DAO members, and delegator interests with a variety of incentives. For one, staked liquidity providers have sovereign ownership over their pools, and they can adjust parameters based on market conditions and how competitive the pool is among others. Nothing in the AMM is hard-coded– LP providers can vote to change any pool parameter, such as swap fees, token rates, reward incentives, and curve algorithms.

How to Use Osmosis

There are a few ways to use Osmosis, and it’s best to follow the money. There are three categories of fees on Osmosis:

1. Anyone who transacts on the chain will pay transaction fees. These fees are variable and based on the storage and computation costs, and the minimum gas cost proposed. These fees are distributed to OSMO stakers and validator operators.
2. Anyone who swaps assets on the DEX will pay swap fees, which are determined by each liquidity pool’s parameters and trade size. These fees are distributed pro-rata to that pool’s liquidity providers.
3. Liquidity providers who pull their liquidity out of a pool will pay exit fees. The LP shares are then burned, and the value is distributed to the remaining liquidity providers.

So, anyone can use the Osmosis DEX functionality to swap IBC-compatible tokens like ATOM, ION, AKT, LUNA, and other compatible chains like CRO.

as you see in this part I found the type of the wallet in the Osmosis

as you see most of the type related to the pool_joined by more than 53 % of the total

after that the large number related to the LP-tokens-minted and as you see this percent is more than 34% of the total

and after that pool-exited and lp-token-burned that as you see with together this number is low than 15 % of the total

so in this part we understand that most of the wallet related to the pool-jioned

so after this part I want to analysis the transaction number and amount of them by the time, so follow us up to the end.

as you see in this part most of the transaction happen in the Mar, Apr and May and after that as you see transaction number started to decrease and up to now you see that this number is in their min number.

but as you now after this time price of the BTC may increase and it may transaction number of the network increase and as you know it may happen the increasing the price of the Osmosis and by follow that increasing the transaction number and amount of the USD we should wait and see the result.

so we see that in the12 Mar and 15 Mar the most number of the transaction happen so after this part lets see that most of the amount is in their or not.

and as you see in the 23 Feb the transaction number is in the low number (low than average).

so in this part I want to found the most amount that happen as you see in some day most f the amount have been seen,

and some of their are :

• 23 Feb
• 12 Jul
• 24 Jul

and as you see there are more than this date but I just want to found the date that not only have the most amount but also have the low transaction number

so we can say that in the upper date the whale input to the market of the Osmosis .

after this part I want to analysis the top 50 token that have the most transaction number and have the most amount of the Osmosis.

lets start the analyze.

as I said before, in this part I want to check the wallet that have the most amount in their wallet as you see in the first chart,

half of the amount exist in the fifth of the wallet.

so we can say that the top of the amount exist in the top 10 wallet and after that (40) is the normal whale(not top whale) and the others may be normal user or near normal whale

so after this part I want to found the top 50 wallet that have the most number of the transaction.

as you see most of the transaction (over 50 %) related to one wallet and by check that wallet we do not see that wallet in the top 50 wallet that have the most amount,

and after this action when I check the wallet that have the similarity with the amount top 50 or not, I see that none of the wallet(in amount and in transaction) have not the same so we can say that transaction number is not related to the whale and for the whale we should just focus on the most amount.

and it show that the first definition of the whale from third graph is the true prove of the whale.

so after this part lets analyze the TVL and transaction number.

conclusion

in this part I analyze the Liquidity Pools - Wallet Composition

\n and at the end I get some result and they are :

• we understand that most of the wallet related to the pool-jioned.
• we see that in the 12 Mar and 15 Mar the most number of the transaction happen but by check the amount graph there were not the most amount.
• the large number of the amount happen in the 23 Feb,12 Jul and 24 Jul that in these date transaction number was low it show that the whale input to network.
• the top of the amount exist in the top 10 wallet.
• by check the top 50 wallet I see that over 67% of the transaction related to one wallet that it was not in the top 50 wallet that have the most amount.
• none of the wallet(in top 50 amount and in top 50 transaction) had the same.
• in the TVL and transaction part the graph show that graph including from 2 part that in the first part the impact were very large but in the second part this impact was too low.

thank you because of your attention.

so as you see in the top 2 graph you can understand that

both of the transaction number and TVL amount, started to increase from the Jul 2021 and i=this action continue up to 1 Mar of the 2022 and as you see transaction number after this date decrease to the first number(Jul 2021)but as you see TVL decrease but with low amount ,

so we should segregate this action for two part.

first one for the up to 1 Mar

and second part up to now

as you see in the first part the impact were very large but in the second part this impact was too low

about the dashboard

it this dashboard I want to check the

• type of the wallet
• transaction number
• amount of the network
• top 50 wallet that have the most transaction number
• top 50 wallet that have the most amount.
• analyze the TVL and transaction