Hop In the Pool [Osmosis]

Analyze how users join pools on Osmosis. Do they dive in headfirst (add both assets; joinpool) or do they wade in carefully (singleside; join swap extern amount in). Also analyze how deep the pool is (typical swap size in token and USD for both activities). BONUS: Post your dashboard on Twitter and tag @flipsidecrypto and any relevant accounts!

Acknowledgment and supplementary Information

I would like to show my sincere gratitude to the author of the following dashboard (alik110 that helped me very much indeed to do my own analysis: *
Author: NSA2000
Twitter of the Author: @NSA2000C
Discord of the Author: NSA2000#5651
Data from FlipsideCrypto
Link to this dashboards tweet:

Summary

In this dashboard, the type of joining users to pools on Osmosis (dive in headfirst (add both assets; joinpool) or wade in carefully (singleside; join swap extern amount in)) has been investigated. Moreover, the typical swap size in token and USD for both activities has been analyzed.
The max number of transactions for the ‘both assets’ type is recorded on 28 Feb 2022 (93.8K).
The max number of transactions for the ‘single side’ type is recorded on 14 Mar 2022 (60.9K).
The total number of transactions for ‘both assets’ join type is 2.35M (65.7%) while this number for the ‘single side’ type is about 1.23M (34.3%).
The total number of users for ‘both assets’ join type is 737.7K (69.3%) while this number for the ‘single side’ type is about 327.04K (30.7%).
The weekly variation of the volume of transactions according to the users’ join type shows a rather constant trend with some spikes between Jan to Jun 2022 for both ‘single side’ and ‘both assets’ types.
The max volume of transactions for ‘single side’ join type is recorded on 30 May 2022 as 221.35M.
The max volume of transactions for ‘both assets’ join type is recorded on 28 Mar 2022 as 2.5B.
The total volume of transactions for ‘both assets’ join type is 10.71B (79.6%) while this amount for the ‘single side’ type is about 2.74B (20.4%).
The max volume of transactions in USD for ‘single side’ join type is recorded on 28 Feb 2022 as 22.22M.
The max volume of transactions in USD for ‘both assets’ join type is recorded on 27 Sep 2021 as 138.7M.
The total volume of transactions in USD for ‘both assets’ join type is 2.17B (87%) while this amount for the ‘single side’ type is about 324.6M (13%).
Total number of ‘single side’ swap transactions is about 1M , while this number for ‘both assets’ swap transactions is more than 3M.
Total number of ‘single side’ swap users is about 145K , while this number for ‘both assets’ swap transactions is more than 1.3M.
The weekly variation of the volume of swap transactions according to the users’ join type shows a rather decreasing trend for ‘single side’ from Jan 2022 to the Nov 2022.
The weekly variation of the volume of swap transactions according to the users’ join type shows a rather bell-like trend for ‘both assets’ join type. The max volume of swap transactions for ‘both assets’ type is recorded between Jan 2022 and Jul 2022.
The max volume of swap transactions for ‘single side’ join type is recorded on 30 May 2022 as 221.3M.
The max volume of swap transactions for ‘both assets’ join type is recorded on 28 Mar 2022 as 2.5B.
The total volume of ‘single side’ swap transactions is about 2.6B, while this number for ‘both assets’ swap transactions is more than 10B.
The weekly variation of the volume of swap transactions in USD according to the users’ join type shows a rather bell-like trend for both ‘single side’ and ‘both assets’ join types. The max volume of swap transactions in USD for ‘single side’ join type is recorded between Jan 2022 and May 2022 while The max volume of swap transactions in USD for ‘both assets’ join type is recorded between Sep 2021 and May 2022.
The max volume of swap transactions in USD for ‘single side’ join type is recorded on 28 Feb 2022 as 22.2M.
The max volume of swap transactions in USD for ‘both assets’ join type is recorded on 27 Sep 2021 as 138.7.
The total volume of ‘single side’ swap transactions in USD is about 300M, while this number for ‘both assets’ swap transactions is more than 2B.

Conclusion

All the data in this dashboard showed that ‘both assets’ join type has the upper hand by far compared to ‘single side’ join type in different terms investigated in this review such as the transactions volume (in token and USD), number of transactions and users as well as the number of swap transactions and users.
As far as the pool size (typical swap size in token and USD for both activities) is concerned, the pool size for both assets join type is way more than singleside join type as investigated in detail.
Therefore, it can be concluded that users usually prefer to dive in headfirst (both assets join type) rather than wading in carefully (singleside join type).
As far as the most popular tokens in the Osmosis pools is concerned, besides OSMO, STARS, HUAHUA, JUNO, EVMOS, ATOM , andCRO are the most popular ones.

The top 3 most popular users according to the number of transactions for ‘both assets’ join type is as follows:

osmo1adtxg4klr2z65zqnxwxv66k5wel7mljutaq6mt: 4.6K, 18.2%
osmo19l9wsymdh3mp7munzrlk8rs03ttnu2uaujyktu: 3.7K, 14.7%
osmo1rlqc49ts8dkyjusznqjgkwv708286ja3vs2755: 3.3K, 13%

The top 3 most popular users according to the volume of transactions for ‘both assets’ join type is as follows:

osmo19myh8xv33u4rseg6ck9vnceyca05c69q3tv0df: 2.7B, 34.4%
osmo1emj5gu2uq0pr5ce49d6eaykh9msk3t067g856y: 2.6B, 33%
osmo1k5k7y4hgy5lkq0kj3k3e9k38lquh0m667arvz2: 907.2M, 11.6%

The top 3 most popular users according to the number of transactions for ‘single side’ join type is as follows:

osmo19l9wsymdh3mp7munzrlk8rs03ttnu2uaujyktu: 4.7K, 14.6%
osmo1m8sxn5fnn74ftw2npw5d2fu4gxlha64ttur36x: 4.04K, 12.5%
osmo1uvnk984yhpw48jfu5srvsrqdt03kkvlcjqx8x5: 3.5K, 11%

The top 3 most popular users according to the volume of transactions for ‘single side’ join type is as follows:

osmo19gc940vdsl9tp5kvkzec7m8njlup7ay0sjafsp: 75M, 18.1%
osmo177t27fsph9rejywmdh4d9s8eqlmv86hdehg30j: 67.4M, 16.3%
osmo1emj5gu2uq0pr5ce49d6eaykh9msk3t067g856y: 59.5M, 14.4%

Introduction

Decentralized finance, or DeFi, has expanded tremendously over the last few years. It offers exciting opportunities through decentralized lending, borrowing assets, yield farming and more. Decentralized exchanges (DEXs) are at the core of these developments and innovations. Until recently, DEXs have experienced certain limitations to the capabilities of their blockchains. A next-generation, multi-chain DEX known as Osmosis is now available. It offers far more functionality than established single-blockchain DEXs.

What Is Osmosis?

Osmosis is a decentralized exchange (DEX) that uses the Cosmos SDK for optimized functionality with other blockchains. Its automated market makers set it apart, allowing enhanced market responsiveness for liquidity providers. Osmosis is a multi-chain DEX specifically built to function with other blockchains in the Cosmos ecosystem. Communication with these other blockchains is achieved via its Inter-Blockchain Communication protocol (IBC). Because Osmosis is linked to other Tendermint blockchains, providing smooth, fast trades. Furthermore, IBC enables customizable automated market makers, or AMMs. Uniquely, Osmosis liquidity providers can set their own parameters based on current market conditions. This customization provides increased responsiveness to changing market conditions for optimized results. In addition, token holders can earn staking rewards, participatory rewards, liquidity mining rewards and transaction fees when they delegate tokens to validators.

==What Is an Automated Market Maker (AMM)?==

An AMM, or automated market maker, is a system of autonomous liquidity providers that determines digital asset pair pricing using smart contracts. By doing so, AMMs provide liquidity for peer-to-peer (P2P) trading. As opposed to traditional finance systems that can manipulate prices and charge high fees, AMMs offer automated, permissionless trading of digital assets. Osmosis stands out among other smart contract AMMs because it utilizes Cosmos SDK’s open-source ecosystem.

What Is a Liquidity Pool?

An automated market maker is structured with liquidity pools, collections of tokens shared by many users. Using a DAO-like structure, each liquidity pool stands on its own and has unique rules established by its liquidity providers. Osmosis users can create their own liquidity pools for liquidity providers to contribute to, and users trade against the pools. Liquidity providers profit from their contributions by earning liquidity mining rewards and fees. The customization of these pools means that their fee structure is created based on a variety of factors that include market volatility. This is in contrast to other platforms’ liquidity pools, which may only take into account token pair rarity. Across all of the Osmosis liquidity pools, the total value locked is roughly $204 million. []

Methodology

The data in this dashboard is obtained from the following tables:

osmosis.core.dim_prices
osmosis.core.dim_labels
osmosis.core.fact_liquidity_provider_actions

Aim of this analysis:

This dashboard aims to investigate the type of joining users to pools on Osmosis (dive in headfirst (add both assets; joinpool) or wade in carefully (singleside; join swap extern amount in)). We also analyze the typical swap size in token and USD for both activities.

Results and discussion

The following charts show the weekly variation and distribution of the number of transactions according to the users’ join type and token type.

The weekly variation of the number of transactions according to the users’ join type shows a rather bell-like trend for both ‘single side’ and ‘both assets’ types. The max number of transactions for both join types is recorded between Dec 2021 and May 2022.
The max number of transactions for the ‘both assets’ type is recorded on 28 Feb 2022 (93.8K).
The max number of transactions for the ‘single side’ type is recorded on 14 Mar 2022 (60.9K).
The total number of transactions for ‘both assets’ join type is 2.35M (65.7%) while this number for the ‘single side’ type is about 1.23M (34.3%).
As far as the distribution of the number of transactions according to the tokens type is concerned, OSMO has the upper hand by far (2.61M, 51.5%). The next 5 most popular tokens are ATOM (801.5K, 15.8%), STARS (312.7K, 6.2%), JUNO (238.5K, 4.7%), HUAHUA (180.6K, 3.2%), and EVMOS (94.6K, 1.9%).

The following charts show the weekly variation and distribution of the number of users according to the their join type and token type.

The weekly variation of the number of users according to the users’ join type shows a rather bell-like trend for both ‘single side’ and ‘both assets’ types. The max number of users for both join types is recorded between Dec 2021 and May 2022.
The max number of users for the ‘both assets’ type is recorded on 28 Feb 2022 (27.7K).
The max number of users for the ‘single side’ type is recorded on 14 Mar 2022 (17.6K).
The total number of users for ‘both assets’ join type is 737.7K (69.3%) while this number for the ‘single side’ type is about 327.04K (30.7%).
As far as the distribution of the number of users according to the tokens type is concerned, OSMO has the upper hand by far (210.13K, 33.2%). The next 5 most popular tokens are ATOM (149.2K, 23.6%), JUNO (39.03K, 6.2%), STARS (30.14K, 4.8%), HUAHUA (17.95K, 2.8%), and MNTL(16.52K, 2.6%).

The following charts show the most popular users according to the transactions number and volume for different join types

The following charts show the weekly variation and distribution of the volume of transactions according to the users’ join type and token type.

The following charts show the weekly variation and distribution of the volume of transactions in USD according to the users’ join type and token type.

The following charts show the weekly variation and distribution of the number of swap transactions for the users’ join type and according to token types.

The following charts show the weekly variation and distribution of the number of swap users for the their join type and according to token types.

The following charts show the weekly variation and distribution of the volume of swap transactions for the users’ join type and according to token types.

The following charts show the weekly variation and distribution of the volume of swap transactions in USD for the users’ join type and according to token types.

The weekly variation of the volume of transactions according to the users’ join type shows a rather constant trend with some spikes between Jan to Jun 2022 for both ‘single side’ and ‘both assets’ types.
The max volume of transactions for ‘single side’ join type is recorded on 30 May 2022 as 221.35M.
The max volume of transactions for ‘both assets’ join type is recorded on 28 Mar 2022 as 2.5B.
The total volume of transactions for ‘both assets’ join type is 10.71B (79.6%) while this amount for the ‘single side’ type is about 2.74B (20.4%).
As far as the distribution of the volume of transactions according to the token’s type is concerned, HUAHUA has the upper hand by far (6.72B, 50%). The next 5 most popular tokens are CRBRUS(4.1B, 30.6%), LUNC(1.15B, 8.6%), OSMO (246.5M, 1.83%), CRO(175.99M, 1.31%), and STARS(173M, 1.29%).

The weekly variation of the volume of transactions in USD according to the users’ join type shows a rather bell-like trend for both ‘single side’ and ‘both assets’ types. The max volume of transactions in USD for ‘both assets’ join type is recorded between Aug 2021 and Jun 2022 while the max volume of transactions in USD for ‘singlre side’ join type is recorded between Dec 2021 and Jun 2022.
The max volume of transactions in USD for ‘single side’ join type is recorded on 28 Feb 2022 as 22.22M.
The max volume of transactions in USD for ‘both assets’ join type is recorded on 27 Sep 2021 as 138.7M.
The total volume of transactions in USD for ‘both assets’ join type is 2.17B (87%) while this amount for the ‘single side’ type is about 324.6M (13%).
As far as the distribution of the volume of transactions in USD according to the token’s type is concerned, OSMO has the upper hand by far (1.23B, 46.6%). The next 5 most popular tokens are ATOM(725.45M, 29.2%), JUNO(90.42M, 3.6%), XPRT(81.21M, 3.27%), AKT(64.4M, 2.6%), and CRO(39.1M, 1.6%).

The weekly variation of the number of swap transactions according to the users’ join type shows a rather bell-like trend for both ‘single side’ and ‘both assets’ types. The max number of swap transactions for both join types is recorded between Dec 2021 and May 2022.
The max number of swap transactions for ‘single side’ join type is recorded on 14 Mar 2022 as 61K.
The max number of swap transactions for ‘both assets’ join type is recorded on 28 Feb 2021 as 162.3K.
As far as the distribution of the number of ‘single side’ swap transactions according to the token’s type is concerned, OSMO has the upper hand by far (712.5K, 58%). The next 5 most popular tokens are STARS(102.5K, 8.35%), ATOM(66.3K, 5.4%), HUAHUA(38K, 3.1%), JUNO(26.5K, 2.2%), and EVMOS(22.6K, 1.8%).
As far as the distribution of the number of ‘both assets’ swap transactions according to the token’s type is concerned, OSMO has the upper hand by far (1.9M, 49.4%). The next 5 most popular tokens are ATOM(708.5K, 18.5%), STARS(210.1K, 5.5%), JUNO(204K, 5.2%), HUAHUA(94.3K, 2.5%), and CRO(81.2K, 2.1%).

The weekly variation of the number of swap users according to their join type shows a rather bell-like trend for both ‘single side’ and ‘both assets’ types. The max number of swap transactions for both join types is recorded between Dec 2021 and May 2022.
The max number of swap users for ‘single side’ join type is recorded on 14 Mar 2022 as 25K.
The max number of swap users for ‘both assets’ join type is recorded on 28 Feb 2021 as 63.31K.
As far as the distribution of the number of ‘single side’ swap users according to the token’s type is concerned, OSMO has the upper hand by far (244.7K, 51.4%). The next 5 most popular tokens are ATOM(53K, 11.1%), STARS(37.8K, 7.9%), HUAHUA(22.7K, 4.8%), JUNO(17.4K, 3.65%), and EVMOS(11.97K, 2.51%).
As far as the distribution of the number of ‘both assets’ swap users according to the token’s type is concerned, OSMO has the upper hand by far (626.1K, 40.9%). The next 5 most popular tokens are ATOM(348.5K, 22.8%), JUNO(87.5K, 5.7%), STARS(79.6K, 5.2%), CRO(38.7K, 2.53%), and HUAHUA(38.3K, 2.5%).

The weekly variation of the volume of swap transactions according to the users’ join type shows a rather decreasing trend for ‘single side’ from Jan 2022 to the Nov 2022.
The weekly variation of the volume of swap transactions according to the users’ join type shows a rather bell-like trend for ‘both assets’ join type. The max volume of swap transactions for ‘both assets’ type is recorded between Jan 2022 and Jul 2022.
The max volume of swap transactions for ‘single side’ join type is recorded on 30 May 2022 as 221.3M.
The max volume of swap transactions for ‘both assets’ join type is recorded on 28 Mar 2022 as 2.5B.
As far as the distribution of the volume of ‘single side’ swap transactions according to the token’s type is concerned, HUAHUA has the upper hand by far (1.5B, 56%). The next 5 most popular tokens are CRBRUS(713.9M, 26.1%), LUNK(252.8M, 9.2%), OSMO(45.9M, 1.68%), LIKE(36.3M, 1.3%), and STARS(32.7, 1.2%).
As far as the distribution of the volume of ‘both assets’ swap transactions according to the token’s type is concerned, HUAHUA has the upper hand by far (5.2B, 48.5%). The next 5 most popular tokens are CRBRUS(3.4B, 31.7%), LUNK(899.7M, 8.41%), OSMO(200.6M, 1.9%), CRO(166.2M, 1.65%), and STARS(140.3M, 1.31%).

The weekly variation of the volume of swap transactions in USD according to the users’ join type shows a rather bell-like trend for both ‘single side’ and ‘both assets’ join types. The max volume of swap transactions in USD for ‘single side’ join type is recorded between Jan 2022 and May 2022 while The max volume of swap transactions in USD for ‘both assets’ join type is recorded between Sep 2021 and May 2022.
The max volume of swap transactions in USD for ‘single side’ join type is recorded on 28 Feb 2022 as 22.2M.
The max volume of swap transactions in USD for ‘both assets’ join type is recorded on 27 Sep 2021 as 138.7.
As far as the distribution of the volume of ‘single side’ swap transactions in USD according to the token’s type is concerned, OSMO has the upper hand by far (175.5M, 54.1%). The next 5 most popular tokens are ATOM(96.5M, 29.7%), JUNO(8.96M, 2.8%), SCRT(4.7M, 1.44%), NETA(4.55M, 1.4%), and HUAHUA(4.49, 1.38%).
As far as the distribution of the volume of ‘both assets’ swap transactions in USD according to the token’s type is concerned, OSMOhas the upper hand by far (1.06B, 49%). The next 5 most popular tokens are ATOM(629.4M, 29.1%), JUNO(81.5M, 3.77%), XPRT(76.6M, 3.54%), AKT(61.24M, 2.83%), and CRO(35.9M, 1.66%).