Liquidity Pools - Wallet Composition

    What type of wallets provide liquidity on Osmosis?

    In this dashboard, we examine liquidity pools and liquidity providers. The purpose of this dashboard is to find out which category of osmosis users this liquidity is divided into. Liquidity providers are usually whales or other people?

    For this, we must first define our definition of a whale. Here, users are divided into 7 categories:

    • Users whose wallet balance is less than 100USD.
    • Users whose balance is between 100 and 1000 USD.
    • Users whose balance is between one thousand and ten thousand USD.
    • Users whose balance is between 10,000 and 100,000.
    • Users whose balance is between 100 thousand and 1 million USD.
    • And users whose balance is more than 1 million USD.

    Here whales are users whose wallet balance is more than 1 million USD.

    What is OSMOSIS Liquidity?

    Osmosis is an automated market maker (AMM) protocol built for liquidity providers. Therefore, it should be governed and owned by liquidity providers. Over time, the largest allocation of OSMO tokens is set aside for liquidity incentives to reward liquidity providers for their contributions and give them an ownership stake in the future of the protocol.

    The process for earning these liquidity incentives is known as liquidity mining. While many within the Cosmos ecosystem are familiar with concepts like staking rewards and community pools, Osmosis is the first Cosmos project to introduce liquidity incentives.

    Providing liquidity (called “LPing”) is the process of depositing assets into an AMM pool. AMMs are decentralized finance protocols that allow for the swapping of assets without a centralized intermediary. Just as trading firms make traditional markets, AMMs establish prices and facilitate trades using permissionless liquidity pools into which users can deposit assets.

    For example, if Pool #1 is the OSMO<>ATOM pool, users can deposit OSMO and ATOM tokens into the pool and receive back Pool1 share tokens. These Pool1 share tokens (called LP tokens) represent one’s proportional ownership of the pool.

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    Getting Started

    Information about liquidity providers is in a table called osmosis.core.fact_liquidity_provider_actions. But using this table is not enough, and to check the price of gas, we must use the osmosis.core.dim_prices table, and to get the balance of each wallet, we must use the FACT_DAILY_BALANCES table.

    The two charts below show the Top 20 Pools by USD Amount. As we know, each pool has a single ID. The largest volume of liquidity is related to the pool with ID 725. By checking we see that this ID belongs to the INJ/OSMO pool. The INJ/OSMO pool holds approximately 45.5% of OSMOSIS' total liquidity with approximately 4.6B.

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    The charts below show the top 10 wallets that have the most balances, as well as the balance distribution. As we can see, the largest number of users have a wallet balance value of less than 100 USD. Approximately 376.4 users have a wallet balance value of less than 100USD, which is approximately 85% of all OSMOSIS users.

    Also, among the wallets with the most assets, the osmo1lwu58mywx0qe706u9hssgu48pz50gvnunc8lph wallet has the most assets with an approximate value of 5.36B USD.

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    The following charts also show the number of liquidity providers in each category of users. As it is known, approximately 146.2 liquidity providers have a USD balance of their wallets less than 100USD. This means that 76.6% of liquidity providers have less than 100 USD. After that, almost 17.3% of liquidity providers have their wallet balance between 100 USD and 1K USD.

    In the daily chart, it is also clear that the largest number of liquidity providers whose balance is less than 100 USD (orange line). It is also clear in this chart that since October 14, 2021, there has been a jump in the amount of liquidity in OSMOSIS pools.

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    Conclusion

    According to the reviewed data, what is clear is that the largest USD volume of the pools is related to the INJ/OSMO pool. Also, by checking the data, it was found that most of the users (85%) have a USD balance of their wallet less than 100 USD, and the same users who have a balance less than 100 dollars, have provided almost 76.6% of the total liquidity of OSMOSIS.

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