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Introduction
- In this analysis, You will read about the Matic movement into the Osmosis chain. We want to know where this Matic is coming from.
- I Tracked the flow of Matic to Osmosis to find Where is this MATIC coming from? Did users remove this MATIC from specific protocols to bridge over to Osmosis?
- Additionally, I analyzed the change in daily bridged volume since incentives were turned on. Are most users bridging MATIC new users or existing Osmosis power users?
Analyzed by Hess - Reading Time Almost 10 Min.
What is Osmosis?
- Osmosis is an automated market maker (AMM) built on Cosmos that enables cross-chain transactions through Inter-Blockchain Communication (IBC). This gives the protocol an added layer of interoperability and composability. Unlike most existing AMMs, Osmosis is deeply customizable and allows developers to leverage many different changeable parameters to build truly unique AMMs that can dynamically fit a variety of outcome goals.
**Source: **
Top Senders
The main question of this analysis was where Matic is Coming from. The answer is simple. From Axelar chain. The highest number of transactions and Volume was sent from Axelar, and most of them were from only one wallet. I can say 99% of transactions and volume come from the Axelar chain. There was only one transfer from Kujira, Cosmos, and Comdex. The transferred amount from these chains wasn’t recorded. The Top Axelar wallet sent 482K Matic in 630 transactions to Osmosis.
Old Vs. New Users
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I think this is the first time I have seen new users have more activities compared to old users.
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The highest number of transactions belong to New users on Osmosis. New users made about 80% of transactions, and Old users made only 19.6%. Most new users transferred Matic to Osmosis when Incentives were enabled on December 19.
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Based on Volume, New users are in the first place, and old users are in second place. The average amount of Matic by New users was 5K Matic and the average transferred Matic by Old Users was 1.2K. New users had a 4x higher average compared to old users.
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Also, The daily chart shows the highest amount of Matic transferred by New Users to Osmosis chain from Axelar bridge.
What Matic Users did when they landed on Osmosis?
- The highest number of Matic receivers used to swap on Osmosis. About 71% of transactions were swapping. Based on The previous charts, We know most of the Users were new to Osmosis. So most of their activities started after December 19. After Swap, Transfer with 19.7% and Staking with 5.8%, had the highest shares compared to other activities.
Conclusion
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When Proposal 386 passed and Incentives were enabled had a huge impact on Matic transfers to Osmosis. About 300% in users and transactions Increased.
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Users transferred nearly 450K Matic to Osmosis.
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The highest amount of Matic transferred when Incentives were enabled.
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Almost all of the transactions and volume came from Axelar bridge.
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New Users had more activities. New Users transferred 80% of Matic, and old users had only 20% of shares.
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The highest activities of Matic receivers were swap and transfer.
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USDC, DAI, ATOM, and OSMO are popular tokens that users swapped from Matic.
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Axelar wallets transferred USDC and WETH to Axelar, Ethereum, and Polygon.
#386 WMATIC bootstrapping liquidity incentives
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The normal signalling proposal to allocate WMATIC incentives would go into effect at the next routine incentives proposal providing incentives on the 25th December. This proposal would provide initial incentives on the 20th December by actioning the following:
- Directly allocating 0.5% of incentives to go to OSMO/MATIC (#789)
- Set Minimum incentives for the OSMO/MATIC (#789) pool of 0.5% for 4 routine proposals to retain this level of liquidity incentives while liquidity is built.
Bootstrapping incentives indicate that Osmosis stakers wish to quickly establish functional liquidity of WMATIC to facilitate trading and liquidity flow between Polygon and Osmosis via the Axelar bridge.
Method
- To track Matic movement to Osmosis, I used the transfer table on Osmosis. The Matic contract address on Osmosis is ibc/AB589511ED0DD5FA56171A39978AFBF1371DB986EC1C3526CE138A16377E39BB. I filtered all transfers with the Matic token included, and the transfer type was IBC_transfer_in. Now I have the senders and Receivers’ addresses too. I can then examine where This Matic is coming from and who the receivers are.
Full Analysis
ALL CODES AND CONTENTS WERE WRITTEN BY HESS.
Matic Transfers
We don’t need to track daily senders right now. Because there were 5-6 addresses that sent Matic to Osmosis. We will examine those addresses in the next sections. Let’s examine Matic transfers and receivers and compare before and after incentives.
- Before Proposal 386 and when there weren’t any incentives, We could count the total daily number of transfers and receivers by hand. It means there were 4-5 transactions often. But when incentives were enabled, After December 19, 2022, The total daily number of transactions increased significantly. Still, The number of transactions per day wasn’t too much but based on the days before Proposal 386 increased by 300%.
- On the other hand, The total number of receivers increased from 1-2 per day to above 20 unique wallets.
- The average number of receivers per day was 2.2 unique wallets before Proposal 386 and increased to 8.6 per day after that. Also, The average number of transactions was 2.5 before incentives and reached 12 tx per day when Proposal 386 passed and enabled incentives.
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The Important part of these transfers is The Matic amount that is transferred to the Osmosis chain. Before Proposal 386, some days, no one sent Matic to Osmosis, and barely reached 300-400 Matic on other days. There were some activities during September 2022, but the size wasn’t size!
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When Proposal 386 passed and incentives were enabled, The total daily transferred Matic amount increased significantly. The highest amount of Matic transferred on December 22 when users transferred 49K Matic to Osmosis. The highest amount of Matic transferred by one user was 25K Matic.
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The average amount of Matic before Incentives was 1.1K, while after Incentives was 10K per day.
Before Proposal 386, all average/Median/Max and Min amounts were the same. Because there was only one transfer and following that, Average and other metrics had no sense. But when Incentives were enabled, We could track the average/Max/Min/median daily transferred Matic amount. The highest average amount belongs to the first days of Proposal 386.
Top Receivers
Based on Transactions: The Top wallet transferred Matic to Osmosis in 69 transactions. The top second receiver received 31 transactions of Matic. The third wallet with 21 transactions is in the next place.
Based on Matic Amount: Only one wallet transferred 74K Matic From Axelar bridge to Osmosis. The second top wallet 47K, and the third top wallet transferred 41K of Osmo from Axelar bridge.
What Matic Receivers did with their Matics?
- About 53.8% of receivers sold their Matic, and 46.2% hold their transferred amount.
- Based on Transactions, Most of the users swapped their Matic to Atom, Osmo and DAI ( Top 3 tokens ), and based on Matic volume, Most of the users swapped their Matic to Osmo, Atom and USDC. ( Top 3 tokens ).
Axelar USDC and WETH-WEI was the most popular assets that transferred by Axelar wallets. After these two tokens, WMATIC-WAI is in third place. USDC had 60% of transactions and WETH had 26% of shares.