Definitions

Axelar Network

Axelar network is a blockchain that connects blockchains, enabling universal Web3 interoperability. The network is secured using proof-of-stake consensus, and messages are routed and translated using permissionless protocols. As an analogy, Axelar is like Stripe for Web3. Axelar delivers secure cross-chain communication for Web3. Our infrastructure enables dApp users to interact with any asset or application, on any chain, with one click.

Axelar is composed of a decentralized network of validators, secure gateway contracts, uniform translation, routing architecture, and a suite of software development kits (SDKs) and application programming interfaces (APIs) to enable composability between blockchains. This allows developers to build on the best platform for their use case, while being able to access users, assets and applications in every other ecosystem. Instead of pairwise cross-chain bridges, they can rely on a network architecture that provides a uniform code base and governance structure.Axelar’s ultimate goal is to build the underlying infrastructure for onboarding the next billion people onto Web3. In order to achieve this goal, Axelar will:

1. Make it easy for blockchain developers to plug in and communicate with other chains.
2. Provide decentralized application (dApp) developers with cross-chain composability.
3. Allow users to interact seamlessly with applications across multiple ecosystems.

The Axelar SDKs provide a rich suite for developing Web3 applications, ensuring that developers have the tools they need for building. With these tools and APIs, developers can use the Axelar network and its SDKs to write dApps that can be easily deployed across all Axelar-connected ecosystems. In other words, Axelar distills cross-chain interoperability down to a simple set of API requests. This is absolutely central to adoption, as the developer experience around deploying Web3 applications must be like the experience today for Web2 developers, where the underlying networking and ecosystem-specific deployment considerations are largely abstracted away.

What is Osmosis?

Osmosis is Layer-1, Proof-of-Stake (PoS) blockchain built using the Cosmos SDK that has optimized its design to be a sandbox for automated market makers (AMMs). The chain enables developers to design and deploy customized AMMs by using its various modules and leveraging Osmosis' on-chain governance system.

Wrapped Asset:

Wrapped Assets tokens are cryptocurrencies that have been transferred to another non-native blockchain but still maintain their original $value. For example, WBTC is the wrapped version of Bitcoin in another blockchain such as Ethereum. its value is still equal to the original value of $BTC.

Dashboard Introduction & Methodology

In this dashboard, we are going to analyze the impact of the Osmosis incentivized Wrapped-Assets on Axelar’s tokens’ transfer volume. The goal of this dashboard is Identify if Axelar should work with Osmosis to incentivize more wrapped assets, in order to increase volume over its bridge.

For this purpose, we are going to analyze the transfer activity of 3 recently launched wrapped incentivized assets on Osmosis before and after they are incentivized on this chain via the bootstrapping proposals and compare their activity during these 2 timespans to each other. So, we have 2 major timespans in this dashboard: 1- Before & 2- After Bootstrapping Proposals for each asset.

• wBNB bootstrapping proposal (#360) was passed on ==2022-11-14== and its IBC address is 'ibc/F4A070A6D78496D53127EA85C094A9EC87DFC1F36071B8CCDDBD020F933D213D'
• wMATIC bootstrapping proposal (#386) was passed on ==2022-12-19== and its IBC address is 'ibc/AB589511ED0DD5FA56171A39978AFBF1371DB986EC1C3526CE138A16377E39BB'
• wAVAX bootstrapping proposal (#410) was passed on ==2023-01-30== and its IBC address is 'ibc/6F62F01D913E3FFE472A38C78235B8F021B511BC6596ADFF02615C8F83D3B373'

I am going to analyze data in over-time charts separately for each asset (in $wBNB, $wMATIC and $wAVAX) and then compare the aggregated average daily transfer activity of all 3 assets (in $USD) before & after their bootstrapping proposal.

The main table that I have used for this table is Flipside’s osmosis.core.fact_transfers with filtering the sender column to Axelar chain address (axelar%) and receiver column to Osmosis chain address (osmo%). For analyzing the activity of tokens’ transfers within the Osmosis chain, we have to filter the transfer_type column to OSMOSIS. Moreover, I have just considered successful transactions for all steps.

wBNB

According to the above charts, the Wrapped-BNB Transfers activity (number and volume) from Axelar to the Osmosis chain and also transfers activity within the Osmosis chain has increased significantly after the Bootstrapping proposal. The average volume of wBNB transfers has also increased dramatically after submitting the bootstrapping proposal which is another positive impact.

The number of wBNB transfers from Axelar to Osmosis is increasing continuously as time goes on and we can see the highest spike of transfer activity on 2nd February 2023.

So, we can clearly see the positive impact of incentivized wBNB on its transfers and briding activity on Axelar & Osmosis and there is increasing trading activity and also the liquidity of this asset on these chains as a result of Bootstrapping proposal.

wMATIC

According to the above charts, Similar to the the wBNB, Wrapped-MATIC Transfers activity (number and volume) from Axelar to the Osmosis chain and especially its transfers activity within the Osmosis chain has also increased significantly after the Bootstrapping proposal. The average volume of wMATIC transfers has also increased dramatically after submitting the bootstrapping proposal which is another positive impact.

as time goes on, the wMATIC transfer activity within Osmosis is increasing dramatically to the extent that we can see the highest spike on 10th February 2023 with total 48k $MATIC transferred within this chain. but the volume of transfers from Axelar to Osmosis after submitting the bootstrapping proposal till today is kinda decreasing as time goes on but still is much more than days before Bootstrapping proposal.

So, we can clearly see the positive impact of incentivized wMATIC on its transfers and briding activity on Axelar & Osmosis and there is increasing trading activity and also the liquidity of this asset on these chains as a result of Bootstrapping proposal.

wAVAX

Similar to the previous assets, Wrapped-AVAX Transfers activity (number and volume) from Axelar to the Osmosis chain and its transfers activity within the Osmosis chain has also increased significantly after the Bootstrapping proposal. The average volume of wAVAX transfers has also increased dramatically after submitting the bootstrapping proposal which is another positive impact.

So, we can clearly see the positive impact of incentivized wAVAX on its transfers and briding activity on Axelar & Osmosis and there is increasing trading activity and also the liquidity of this asset on these chains as a result of Bootstrapping proposal.

Aggregated

Summary and Conclusion

According to the above analysis, The huge positive impact of “bootstrapping” proposals on Axelar bridge to Osmosis and also the transfer activity of assets within Osmosis itself was approved.

All 3 wrapped assets’ (wBNB, wMATIC & wAVAX) trading and briding volume have increased significantly after Boostrapping proposals. wMATIC & wAVAX was more positively-affected by these proposals.

The bootstrapping proposals sufficiently incentivize users to transfer external assets into Osmosis via Axelar’s bridge because we have seen there was a very low activity of their transfers and flow within the Osmosis chain before Bootstrapping proposals.

So, we can say Axelar should definitely work with Osmosis to incentivize more wrapped assets, in order to increase volume over its bridges.

**Discord: Ali3N#8546 Twitter: Alik_110 Email: Alik110.72@Gmail.com Check out My Other Dashboards at: **

On the above and left charts, we can see the aggregated average daily number and also $USD volume of Wrapped Assets (wBNB, wMATIC & wAVAX) transfer activity from Axelar to Osmosis and also within Osmosis chain in order to compare them easily in these 2 different timespans (before & after their bootstrapping proposals).

As it was visible in previous charts, in these 3 simplified charts we can clearly see the positive impact of bootstrapping proposals on each asset.

The average daily $volume of wMATIC transfers from Axelar to Osmosis has increased by almost 9x after the bootstrapping proposal which indicates that this asset is the most affected token after its bootstrapping proposal (wBNB was the least affected asset)

Within The Osmosis chain, The average daily $volume of wAVAX transfers has increased by almost 97x after the bootstrapping proposal which indicates that this asset is the most affected token after its bootstrapping proposal (wBNB was the least affected asset)

Totally, we can say the Osmosis incentives have been effective in increasing the transfer & trading activity of briding wrapped assets from Axelar to this chain and also their transfers activity within the Osmosis chain itself.