User Segmentation Analysis

    Last week we analyzed how users join pools, single or double-sided, which showed that most users join two-sided. This means that most users are already engaged within the Osmosis ecosystem. Let's analyze a typical user journey through Osmosis.

    Introduction

    Osmosis

    Established in 2021, Osmosis is a multi-chain AMM built for the Cosmos ecosystem. The DEX (Decentralized Exchange) offers interoperability between blockchains using Inter-blockchain Communication Protocol (IBC) and Axelar, which facilitate the connection of blockchains within a decentralized infrastructure

    AMMs are typically pools of digital assets managed by a smart contract used to enable decentralized trading. The liquidity pools and smart contracts replace the order book system; liquidity providers lock their assets into the pool and earn fees when people trade in these pools.

    IBC

    The Inter-Blockchain Communication (IBC) protocol allows different blockchain networks to communicate. IBC was the final part in the development of the three major components of the Cosmos technology to be released. The other two components being the Tendermint Core and the Cosmos SDK (software development kit)

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    Methodology

    In my previous Osmosis dashboard, We have realized that most users join Osmosis pools, two-sided. Now in this dashboard, I am going to analyze a typical user’s journey through Osmosis.

    So, Firstly, We are going to calculate the total number of Osmosis wallets and their evolution over time (on a weekly time basis).

    Then, We are going to see what is the most common ways of entering Osmosis (Different Chains & also Axelar’s Satellite’s Bridge) (total and for the first time entering the ecosystem)

    Then, We are going to see what are the most commonly transferred assets into Osmosis (total and first time).

    Then, We are going to see what users do when they enter Osmosis, Swap, LP, Transfer, Stake or etc. (total and first action)

    Then, We are going to see how many users join the Osmosis ecosystem to Swap for an asset then transfer it out of Osmosis and compare it to the number of users who join the Osmosis ecosystem to swap for an asset and then provide liquidity with it.

    The main tables that I have used for this analysis are several Flipside’s Osmosis.core tables such as Transactions, Swaps, Transfers, Labels, etc.

    For volume analysis, I have calculated the $USD value of swaps using osmosis.core.dim_prices table joining osmosis.core.dim_labels. (I have excluded INJ & IOV tokens from volume analysis since they were generating incorrect and weird numbers (INJ decimal is wrong in some tables and IOV price has a sudden and certainly incorrect spike on October 2021. its price raised from $0.08 to $21000 in some days!

    Based on the above data, till today (analysis date = 25th December 2022) There are almost 612k unique wallets who have entered the Osmosis ecosystem. The average daily number of new registered users on the network is 1107.

    Also, on the over-time chart, we can see the highest peak of entering into the Osmosos ecosystem was during December 2021 - March 2022. dung these dates, the highest number of users have entered the Osmosis ecosystem (highest spike during First March Week). After this timespan, we can see decreasing trend of number of new users who are joining Osmosis and performing transactions on it for the first time, over time.

    Total Osmosis Users

    Based on these charts, The dominance of Cosmos as the main source of entering to the Osmosis ecosystem is decreasing over time and we can see increasing share of some other chains such as Evmos as time goes on.

    As mentioned earlier, we can see the highest peak of entering to Osmosis from these chains was during First months of the year 2022, we can also see some high spikes during October 2022.

    According to the left chart, the evolution of Evmos as the second most popular source of entering to the Osmosis is interesting and we can see this chain has totally overtaken Juno Terra and other chains and is currently the second after Cosmos.

    Entering the Ecosystem

    In this part, I have analyzed the ways that users are entering the Osmosis ecosystem. For this, I have broken down results by chain and also analyzed the entry actions via Axelar’s Satellite bridge. I have analyzed the sources of entry to Osmosis via senders’ wallet address (for example, those which start with Cro% means they are from Cronos chain).

    According to these charts and as it was predictable, the native token of popular source chains are also the most popular asset transfered to the Osmosis.

    As we see, ATOM is by far the most transfered asset to Osmosis (total and also as the first-time transfer) and on the second rank of all charts we can EVMOS.

    And on the left charts, we can see the top popular assets of each chain that are being transferred to the Osmosis chain (by both number of transactions and users).

    As we see, the majority of these popular assets are the native token of related chain.

    Moreover, ATOM is by far the most popular tranferred asset to the Osmosis chain.

    AXL, USDC & WETH are the 3 most popular assets which were send via Axelar’s Satellite Bridge to the Osmosis ecosystem.

    Users’ Behavior When They Enter Osmosis Ecosystem

    Here, I have used almost all users action-related tables on the osmosis.core table to specify the action type of users after their enter to the Osmosis ecosystem. In this purpose, I have used osmosis.core.fact_governance_proposal_deposits for ==Governance Deposit== Actions, osmosis.core.fact_governance_submit_proposal for ==Governance Propose== actions, osmosis.core.fact_governance_votes for ==Governance Vote== actions, osmosis.core.fact_liquidity_provider_actions for ==Liquidity Providing== actions, osmosis.core.fact_locked_liquidity_actions for ==Locked Liquidity Providing== actions, osmosis.core.fact_staking for ==Staking== actions, osmosis.core.fact_superfluid_staking for ==Suprefluid Staking== actions,

    osmosis.core.fact_swaps for ==Swapping== actions and osmosis.core.fact_transfers for ==Transfer Out== and also ==Inner Transfer (within Osmosis)== actions,

    According to the above charts, Swapping is the most popular activity (both total and First action) among users who have entered the Osmosis ecosystem. The second rank of most popular action belong to the Transfering Assets out of Osmosis ecosystem and the 3rd rank belong to the Liquidity Providing (LP) actions. we can see staking $OSMO is the next popular action of new users after entering the Osmosis ecosystem and a low share of actions belong to the Governance-related ones and also inner-transferring assets within the Osmosis ecosystem.

    So, we can conclude that Swap activity on Osmosis is an high-popular actition to the extent that users immediately perform this action when they recently entered the Osmosis ecosystem.

    On these charts, we can see the evolution of actions done by new-entered users into the Osmosis chain over time.

    As we see, in almost all days, Swapping was by far the most popular action by users.

    Before April 2022, the share of Liquidity providing actions by newly entered users was almost high but after this month, we can see kinda decreasing share of LP actions by users and on the other hand, increasing share of some other actions such as Transfering Out, Governance Voting and etc as time goes on.

    According to the above charts, in both terms of number and volume of actions, $ATOM is by far the most popular asset that new Osmosis users have swap from it to the other assets. On the next rank of both charts, we can OSMO (Osmosis’s native token) on the second rank.

    On the other hand, in terms of swapping TO, we can see $OSMO is by far the most popular asset. this means the majority of users who are entering Osmosis ecosystem, swap their asset into the $OSMO as the first swap transaction on Osmosis.

    On the above charts, We can see the weekly change of first swapped to/from assets by new users who have joined Osmosis ecosystem.

    As we see, in majority of days, $ATOM (as the most popular swap from asset) and $OSMO (as the most popular swap to asset) are dominating all other assets.

    Also as mentioned earlier, First days of the year 2022, was the highest peak of swap activity on Osmosis.

    Now in terms of Liquidity providing actions, we can see the pool ID #1 (ATOM/OSMO) is by far the most popular liquidity pool (in both terms of volume and number) for the newly joined Osmosis users.

    This means that majority of users that have join Osmosis ecosystem and want to provide liquidity on this chain, choose ATOM/OSMO pool as their liquidity pool.

    the second rank of most popular liquidity pool in terms of number belong to the JUNO/OSMO pool and in terms of volume, REGEN/ATOM is on the second rank.

    On the above charts, we can see the weekly evolution of LP actions of users who have joined Osmosis ecosystem and performed LP on pools.

    First of all, we can see the timespan between January - March 2022 was the highest peak of LP actions on Osmosis ecosystem and after this timespan and especially during the recent weeks, we can see quite decreasing trend of LP activity as time goes on. Moreover, we can see in majority of days, pool id #1 (ATOM/OSMO) is by far the most popular pool on Osmosis that new Osmosis users LP in that.

    Join to Swap For a Token Then Transfer Out / Provide Liquidity Via It

    In this part, I have specifically analyzed the users who have joined Osmosis ecosystem, performed a swap transaction (as their first activity on Osmosis), then have used that swapped out token to provide liquidity or transfer it out of Osmosis ecosystem.

    On the pie-chart above, Firstly we can see that number of users who have transfer that swapped out asset out of Osmosis (56.7%) is more than users who have provided liquidity with that asset (43.3%)

    The interesting thing is the over-time data. As we see, during the first months of the chart before early-2022, the number of users who have used their swapped out asset for liquidity providing was more than users who have transfered that asset out of Osmosis but as time goes on and especially after February 2022, we can see quite increasing share of transfering asset out of Osmosis over time to the extent that in the cumulative chart, we can see these users have totally overtaken users who have LPed via swapped out asset.

    On the above charts, we can see $ATOM (in terms of volume) and $JUNO (in terms of number) are the most commonly used asset to swap for them and then transfer out of Osmosis.

    On the next ranks, we can see some assets such as SCRT, OSMO, AKT, USTC and STARS .

    But in terms of liquidity providing via swapped out asset, we can see $OSMO is by far the most popular asset in both terms of number and volume of actions and $ATOM is on the second rank with a big difference from $OSMO.

    On the above charts, we can see number and volume of assests which were swapped out and then have been tranferred out of Osmosis over time. As we see and as mentioned earlier, $ATOM and $JUNO are the most popular assets and have a close competition with eachother all over the chart.

    Totally, we can see the highest peak of these type of actions were during early-2022 and after that a decreasing trend is visible on the chart.

    Summary and Conclusion

    According to the above analysis:

    • The highest peak of new users joining Osmosis and also of activity over this ecosystem (especially swapping in DEX and also providing liquidity in pools) was during the first weeks of the year 2022 till March 2022. After this date, we have seen decreasing trend of new users, liquidity providing actions and also swap activity on Osmosis till today. recent weeks were the lowest peak of activity on Osmosis.
    • Cosmos and Evmos were the most popular source chain of users who were entering the Osmosis ecosystem. Also their native assets, $ATOM and $EVMOS was the most popular first-transfered assets to this Ecosystem from other chains. As time goes on, the dominance of Cosmos as the most popular source of entry to Osmosis is getting lower and on the other hand, the share of other chains such as EVMOS and JUNO is increasing over time.
    • Swapping (#1), Transfering Assets Out of Osmosis (#2), Liquidity Providing (#3) and Staking (#4) are the most popular first action of users who have just entered the Osmosis ecosystem.
    • $ATOM is the most popular asset to swap from it when entering Osmosis ecosystem. on the other hand, $OSMO is the most popular asset to swap to it by users who have entered Osmosis ecosystem.
    • ATOM/OSMO pool (#1 ID) is the most popular liquidity pool for the new Osmosis users who have entered this ecosystem.
    • Before early 2022, the share of users who have swapped out an asset and used it to provide liquidity on Osmosis was so high was after a while, The share of users who have transferred the swapped out asset out of Osmosis has increased dramatically and totally overtaken the other type.
    • So, we can say during recent weeks, most number of new users who have joined Osmosis ecosystem have left it immediately after swapping for an asset and did not stay for a long time to provide liquidity on this ecosystem's pools.
    • JUNO and ATOM were the 2 most popular assets to swap to them and transfer out of Osmosis.
    • OSMO was by far the most popular asset to swap to it then provide liquidity on Osmosis via it.

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    And On the above charts, we can see number and volume of assests which were swapped out and then have been used for providing liquidity in Osmosis. As we see and as mentioned earlier, $OSMO is by far the most popular asset in almost all days but the dominance of this token has decreased significantly during recent weeks especially after October and we can see increasing share of other assets especially $ATOM over time.

    Totally, we can see the highest peak of these type of actions were during early-2022 and after that a decreasing trend is visible on the chart.

    Based on the above charts, Cosmos (Atom) is the most popular source chain of entering to the Osmosis ecosystem in both terms of number of transactions and users and also in terms of number of users who have firstly entered the Osmosis.

    In the second rank, we can see EVMOS is the most popular source chain for entering the Osmosis chain and on the next ranks we have chains such as Umee, Terra, Juno.

    We can also see there are some users that have used Axelar Satellite Bridge as the main way of entering the Osmosis ecosystem but their share is not so high and we can see several chains which have sent more number of users to the Osmosis than Axelar Sattelite Bridge.