Quarterly Performance Report - Osmosis
Osmosis is a leading decentralized exchange (DEX) built on the Cosmos blockchain that allows users to trade various digital assets in a trustless and decentralized manner. As with any financial institution, Osmosis's quarterly performance is an important indicator of its success and sustainability.
In this analysis, we will examine Osmosis's performance in the first quarter of 2023, evaluating key metrics such as trading volume, liquidity, user growth, and overall market position. By understanding the factors driving Osmosis's performance, we can better appreciate its impact on the broader DeFi landscape and make informed predictions about its future prospects.
![db_img](https://res.cloudinary.com/dsr37ut2z/image/upload/f_auto,q_auto/v1682062717/hwicty0lkak1vunx8qgu.png)
With the assistance of Flipsidecrypto, I created a dashboard to analyze Osmosis activity during the first quarter of 2023. The purpose of this analysis is to identify any significant changes and evaluate Osmosis' performance in the first three months of the new year, as well as examine the impact of the Mars protocol launch on February 3rd on Osmosis activity.
Initially, I analyzed Osmosis Swap activity by extracting data from the fact_swaps
table, examining user growth and transaction volume, and comparing them with previous quarters from the previous year to evaluate Q1 2023 performance. I also analyzed LP activity during this period with the same metrics as swaps, utilizing the fact_liquidity_provider_actions
table.
The next tab focused on Osmosis holders' changes quarterly since 2022, providing insight into the evolution of Osmosis holders since that time.
Lastly, I examined the Mars protocol launch's impact on Osmosis total transactions, utilizing the fact_transactions
table.
In doing so, I only considered successful transactions with tx_succeeded = 'true'
.
What is Osmosis and its native token $OSMO?
Osmosis is a decentralized exchange (DEX) built on the Cosmos blockchain ecosystem. It is designed to support the trading of assets in various Cosmos-based blockchain networks, as well as other non-Cosmos-based blockchain networks. The Osmosis chain is the underlying blockchain network that supports the Osmosis DEX.
Osmosis uses an automated market maker (AMM) algorithm to determine the prices of assets traded on its platform. This algorithm works by using a liquidity pool, which is a pool of funds contributed by liquidity providers who receive a share of the trading fees. As the supply and demand for a particular asset changes, the AMM algorithm automatically adjusts the price of that asset in the liquidity pool to maintain a constant ratio of the two assets in the pool.
The OSMO token is the native cryptocurrency of the Osmosis network. It is used for governance, staking, liquidity provision, and paying transaction fees on the platform. OSMO token holders can vote on proposals to change the protocol's parameters, such as transaction fees or staking rewards. OSMO tokens are also used as a reward for liquidity providers who contribute to the liquidity pools on the Osmosis DEX. As the platform grows in popularity, the demand for OSMO tokens is expected to increase, driving up its value.