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 a Liquidity Pool?

A liquidity pool is a crowdsourced pool of cryptocurrencies or tokens locked in a smart contract that is used to facilitate trades between the assets on a decentralized exchange (DEX). Instead of traditional markets of buyers and sellers, many decentralized finance (DeFi) platforms use automated market makers (AMMs), which allow digital assets to be traded in an automatic and permissionless manner through the use of liquidity pools.

Why Are Crypto Liquidity Pools Important?

Any seasoned trader in traditional or crypto markets can tell you about the potential downsides of entering a market with little liquidity. Whether it’s a low cap cryptocurrency or penny stock, slippage will be a concern when trying to enter — or exit — any trade. Slippage is the difference between the expected price of a trade and the price at which it is executed. Slippage is most common during periods of higher volatility, and can also occur when a large order is executed but there isn't enough volume at the selected price to maintain the bid-ask spread.

This market order price that is used in times of high volatility or low volume in a traditional order book model is determined by the bid-ask spread of the order book for a given trading pair. This means it’s the middle point between what sellers are willing to sell the asset for and the price at which buyers are willing to purchase it. However, low liquidity can incur more slippage and the executed trading price can far exceed the original market order price, depending on the bid-ask spread for the asset at any given time.

Liquidity pools aim to solve the problem of illiquid markets by incentivizing users themselves to provide crypto liquidity for a share of trading fees. Trading with liquidity pool protocols like Bancor or Uniswap requires no buyer and seller matching. This means users can simply exchange their tokens and assets using liquidity that is provided by users and transacted through smart contracts.

Part1 - General and OverTime Stats

In this section, you can access the following items:

• LP stats over time
• LPers count and its change over time
• AVG,Median deposit and withdraw amount over time
• total unique users - Deposit and Withdraw
• total Deposit and Withdraw count
• AVG Deposit and Withdraw amount $

(timeframe and time scale can be altered by the user)

Part2 - Distribution of transactions and users

In this section, you can access the following items:

• Distribution of users by Deposit amount
• Distribution of Deposit amount

(timeframe and time scale can be altered by the user)

Part3 - Deposit amount Moving average - 7 and 100 days

In this section, you can access the following items:

• withdraw amount - daily average and moving averages
• deposit amount - daily average and moving averages

(timeframe and time scale can be altered by the user)

A moving average (MA) is a stock indicator commonly used in technical analysis, used to help smooth out price data by creating a constantly updated average price. A rising moving average indicates that the security is in an uptrend, while a declining moving average indicates a downtrend. 1

Part4 - Whales dominance

In this section, you can access the following items:

• depositor users share per user type over time
• deposited usd amount share per user type over
• total Deposited amount per user type

(timeframe and time scale can be altered by the user)

WHALES in this dashboard are defined as users with a balance of over 100K$

Part5 - Deposit Pools comparison

In this section, you can access the following items:

• total/over time/cumulative deposit amount per pool over time
• total/over time/cumulative Withdraw amount per pool over time
• top pools in terms of TVL $
• top 5 pools in terms of NET USD amount
• top 5 pools in terms of Deposit amount over time
• top 5 pools in terms of withdraw amount over time
• top 5 pools in terms of depositors over time
• top 5 pools in terms of withdrawers over time

(timeframe and time scale can be altered by the user)

5-1 - top pools over time

\n

6- Define and Track your target user

In this part , you can access the following information by ==entering your desired user address==. One of the most important features of this part is that you can get ==the ranking of your desired user in the desired time and in terms of 12 metrics==.

These metrics are:

num_deposits==, num_withdraws , ==deposit_amt== , withdraw_amt, ==avg_dep== , median_dep , ==max_dep== , avg_witd , ==max_witd== , median_witd , ==active_days_ratio== , pools_interacted

> active_days_ratio is the share of days which the target user has been active in terms of LP actions

Project Overview

This project aims to investigate and compare Liquidity actions in Osmosis. The importance and sensitivity of this issue has been explained in the previous section. The first part of this dashboard examines General and OverTime Stats . In the second part, you can see information about Distribution of transactions and users. In the next section, Deposit amount Moving average - 7 and 100 days and Whales dominance are also reviewed, followed by a section which discusses about Pools comparison.

In the last part of this dashboard, you can access the following information by entering your desired user address. One of the most important features of this dashboard is that you can get the ranking of your desired user in the desired time and in terms of 12 metrics. These metrics are:

num_deposits==, num_withdraws , ==deposit_amt== , withdraw_amt, ==avg_dep== , median_dep , ==max_dep== , avg_witd , ==max_witd== , median_witd , ==active_days_ratio== , pools_interacted