Introduction and Methodology

Osmosis is an AMM liquidity protocol built on the Cosmos SDK. It allows for highly customizable, cross-chain AMMs to be further built upon it. In addition to enabling this wide functionality for developers, Osmosis has an exchange for users: app.osmosis.zone.

This analysis examines the stablecoin activity on Osmosis Zone, specifically for three coins: USDC, USDT, and DAI, to identify the most popular stablecoin on the DEX. It utilizes the fact_token_transfers table and the labels table from Flipside Crypto's Osmosis schema. The timeframe for the analysis is from 1 May 2022 to the most recent data as of this writing (28 June).

Of these three tokens, USDC has the most liquidity on Osmosis Zone - over $12M, followed by DAI ($2M), and USDT ($12k):

Data Results

The visualization below shows the daily transaction count for each of the 3 stablecoins on Osmosis. Among these tokens, the majority of transactions takes place in USDC:

Image from info.osmosis.zone/token/USDC

Image from info.osmosis.zone/token/DAI

Image from info.osmosis.zone/token/USDT

Below is a different look at Osmosis stablecoin activity - a chart showing the daily total amount transacted in each of these stablecoins.

Here again USDC dominates, however we can see that there have also been large transactions in USDT (early-mid May) and DAI (end of May-June). These volumes are below the 24h volume statistics provided on the Osmosis Zone interface, which implies that there are more transactions than are contained fact_token_transfers with the token labels (contracts) this analysis identifies. Yet, the below figures appear to correctly reflect the ranking of the stablecoins, with USDC dominating, followed by DAI:

The nature of transactions with USDC compared to USDT and DAI has been fundamentally different.

USDC has consistently been the leading stablecoin on Osmosis, with its hundreds of daily transactions of 1k to several thousand USDC each on average.

Meanwhile, USDT and DAI bring singular ad-hoc transactions, each significantly larger in size (up to tens or even hundreds of thousand on average) than an average USDC transaction:

About

This analysis was created by catscatscode (Flipside, Twitter, catscatscode#3578 on Discord) on 28 June 2022 for Flipside Crypto's "Stablecoin Dominance" Osmosis bounty. This analysis represents the author's best effort at interpreting available data, but it is not financial advice.

In conclusion, USDC is the dominant stablecoin on Osmosis both by volume (amount transferred) and popularity (number of transactions where it was transferred). The daily volumes of transferred USDC are volatile, but not as volatile as DAI and USDT, both of which only appear to be transferred on some days, and in notably fewer transactions.