Osmosis Vs. New Terra
Introduction
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I compared Osmosis to New Terra, also known as Terra 2.
The performance of the two new chains after the new year 2023 is what we are interested in. The rumors were that most of Terra whales moved to Cosmos hub, especially Osmosis. However, these are just rumors and we don't know anything about them. Almost key activities on both chains are similar.
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So, I went through these two chains and analyzed these parameters:
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New Users
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Users and Transactions
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Activities
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Swaps
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Stake
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Liquidity
Analyzed by Hess - Reading Time Almost 8 Min
Swap to Native Tokens
A second popular activity for Osmosis and Terra users was swapping. I did not examine all swaps in this part. I searched for swaps to the native tokens of these chains, Osmo and Luna.
Compared to Terra Token, Osmo Token is much more popular. Only 7.81% of total swaps were to Luna. Meanwhile, 92% of total transactions were swapped to Osmo tokens.
According to the swap volume, users exchanged 63M USD to Osmo tokens and 587K USD to Luna tokens since January 2023. There is too much difference between Osmo and Terra.
Users Activities
The left charts are on the Terra chain, and the right charts are on the Osmosis chain. Let's look at what users are doing on Terra and Osmosis chains.
- Voting on Osmosis was much more popular than on Terra chain. As soon as a proposal was live on Osmosis, the total number of voters increased daily. Voting became the most popular activity on Osmosis chain, while voting on Terra wasn't popular.
- Staking is the most popular activity on both chains if we ignore the voting, which wasn't active all days. Nevertheless, Osmosis had 10x more stakers per day than Luna.
- On Terra, unstaking was the second most popular activity, while Osmosis was the least popular activity.
- Occasionally, Swap was Terra's second most popular activity. On Osmosis, swap is the second most popular activity.
- Liquidity is similar on both chains, but Osmosis had 10x more providers than Terra.
Users and Transactions
Let's examine the daily number of users and transactions per chain after New Users on Osmosis and Terra.
- Between 77 and 93% of total users were using Osmosis on a daily basis. Terra had only a 6 to 23 percent share of users. In January 2023, Terra had higher shares than in February.
- In addition to the number of users, the total number of transactions on Osmosis differed greatly from Terra 2. Terra had an average of 2.5K transactions per day, while Osmosis had an average of over 25K transactions per day. During February 2023, Osmosis activity increased.
- In total, 19.7% of all users used Terra, while 80.3% used Osmosis.
- Additionally, there were 186K transactions on Osmosis and 45.7K on Terra.
Staking
The most popular activity on Terra and Luna was staking. In order to understand better, I compared Terra with Osmosis separately.
- On Osmosis, the total number of stakes per day was between 4K-5K, while on Luna, the number of stakes per day was 500-700. Compared to January 2023, stakes on both chains increased in February.
- There were 88.6% of stake transactions on Osmosis and 11.4% on Terra.
- In terms of staked volume in USD, both chains were similar. Over 19 million US dollars were staked on Osmosis and 18.2 million on Terra in Osmo. Staking volume on Terra increased significantly on some days, but Osmosis dominated the daily chart.
Add Liquidity
- In terms of transactions, it appears fewer users added liquidity on Terra, while over 2K added liquidity on Osmosis every day.
- According to the Added Liquidity volume, Terra has a good level of liquidity despite having fewer users and transactions. Liquidity has been added to Terra by some whales. According to volume, Terra added 8 million dollars of liquidity and Osmosis added 14.5 million dollars.
![db_img](https://uploads.flipsidecrypto.com/product/images/fPk5QVme8C_m.jpeg)
What is Osmosis?
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Through Inter-Blockchain Communication (IBC), Osmosis is an automated market maker (AMM) built on Cosmos. As a result, the protocol is more interoperable and composable.
Osmosis offers a wide range of changeable parameters that allow developers to design truly unique AMMs compared to most existing AMMs
Method
I used Flipside Osmosis and Terra core tables to compare these two chains.
New Users:
Using the Min function and Transactions table, I extracted the first transaction from each wallet on Osmosis and Terra. After that, I counted the total number of wallets since the New Year.
Transactions and users:
As before, I used Transaction tables to count the number of users and tx_ids since January 2023.
Activities:
The good news is that each activity has its table on Osmosis and Terra. I used four key parameters: swap, stake, voting, and liquidity.
Swap Volume:
I examined the daily swap volume to Osmo and Lunua, native tokens of these chains. Luna price was calculated from the swap table and Osmo price was extracted from the Osmo price table. I then combined my findings with the swap table. For Staking and Liquidity, I did the same thing.
Full Analysis
New Users
- I used ‘Log’ In the below chart. I should mention again that we don’t have access to wallet creation date. So, New users are based on the first transaction of user.
- Osmosis and Terra had similar daily numbers of new users until late January. As a result of a huge spike in Osmosis users after January 30, the difference between Terra and Osmosis users increased.
- New users on Osmosis averaged 300 to 1000 per day, but on January 30 and February 13, the number of new users increased to over 10000, while Terra averaged less than 200.
- Since January 2023, Terra had 11.22K new users, and Osmosis had 51.5K.
ALL CODES AND CONTENTS WERE WRITTEN BY HESS.
Conclusion
The short version of the story is that Osmosis defeated Terra chain in all activities. With a lot of active users, Osmosis chain appears to be a sharp chain, whereas Terra appears to have less activities and less appeal for its users. Let’s examine the summary of this analysis:
- Since the New Year, Terra has gained 11.22K new users, while Osmosis has gained over 50K new users.
- As of January 2023, Osmosis had 186K transactions, while Terra had 45K.
- The most popular activities on Terra and Osmosis are staking and swapping. Osmosis had 10x more swaps and stakes than Terra.
- A total of 62M US dollars were traded to Osmo on Osmosis, while a total of 500K US dollars were traded to Luna on Terra.
- Terra and Osmosis users had similar volumes. Osmosis users staked 19M US dollars of Osmo, while Terra users staked 18M US dollars of Luna.
- It is interesting that top validators on Osmosis and Terra are similar in case of total staked volume.
- Liquidity on Osmosis is much popular than Terra. In terms of volume, Terra users added 8M US dollars and Osmosis users added 14.5M US dollars.