Osmosis - WAVAX Activity
Last week, wrapped AVAX (WAVAX) was listed on Osmosis and seeded with liquidity via Pool 899 (OSMO/WAVAX). Analyze WAVAX activity over its first week of trading on Osmosis. How does WAVAX trading on Osmosis compare to native swaps on Avalanche?
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Here we will intend wAVAX has been "swapped in" in case wAVAX is being swapped for another token whereas "swapped out" if another token is being swapped for wAVAX
We will start our analysis by looking at some stats about the swaps of wAVAX on Osmosis, the most popular DEX on Cosmos and then we will see the wAVAX trading activity on Avalanche network
There is only one pool with wAVAX for the moment (wAVAX/OSMO) on Osmosis, however users can leverage it in order to swap wAVAX in/out for other assets like USDC and wrapped BNB: the DEX uses pools like USDC/OSMO or wBNB/OSMO if the user wants to swap wAVAX in/out for USDC or wBNB
Pool #899 was added on January 21th on Osmosis and it is composed of WAVAX (wrapped AVAX) and OSMO. Users can add liquidity by providing either the two assets or a single one. In this analysis we want to focus on WAVAX , wrapped AVAX whose contract address on Osmosis is ibc/6F62F01D913E3FFE472A38C78235B8F021B511BC6596ADFF02615C8F83D3B373 Users can bridge AVAX from Avalanche network via Axelar satellite
Here we have the confirmation of we just noted:
from the chart on the left we can see how WAVAX are mostly being swapped in (there is an outflow) for other assets (such as USDC and OSMO above all as we can see from the charts upside)
The donut on the right is showing the top 8 assets WAVAX has been swapped from/for by number of swaps (here "swapped from" stands for "swapped out" and "swapped for" to "swapped in")
Only OSMO and USDC together are taking almost 75% of total swaps
Let's look at daily volume of WAVAX swapped in on Osmosis DEX
As we can see, USDC and OSMO are by far the assets WAVAX has been swapped for so far
What about the assets users have been swapping for getting WAVAX?
The chart on the left are showing this
OSMO and USDC still dominate but we can not how the volume here are lower , which means people have been swapping WAVAX for other assets rather than swapping other assets for WAVAX
Also WAVAX swap volumes are generally in a downtrend after a spike on the 2nd and 3rd February
The current version of WAVAX used on Osmosis comes from Avalanche via Axelar bridge
It looks like significant amount of WAVAX have been bridged in to Osmosis from Avalanche since when the WAVAX/OSMO was introduced and incentivized with OSMO rewards
Taking in account that around 100K of WAVAX in terms USD have net flowed into Osmosis and around 40K of WAVAX in USD have been net swapped in for other assets (also a big part of it is OSMO) , it seems one of the common behaviour users are having is bridging WAVAX via Axelar from Avalanche and then swapping half of it for OSMO and adding the liquidity to the incentivized pool
So we can safely assess that there is a good demand and interest for WAVAX on Osmosis maybe because of the OSMO rewards given by bonding liquidity on the WAVAX/OSMO pool
Let's take a look at WAVAX trading activity on Sushiswap, the biggest DEX on Avalanche network. Starting with number of swaps since December 1st , we can note how USDC,MIM and MEMO are the assets counting the largest number of swaps with WAVAX and the largest volumes in terms of USD swapped from/for WAVAX
We are gonna evaluate from December 1st in order to see how things changed over time after WAVAX/OSMO announcement
Unlike Osmosis, on Sushi users are slightly more swapping out WAVAX than swapping in it suggesting a positive demand for this asset probably because of the incentivized pool on Osmosis
In fact, we can note a change in the trend since the middle of January when the WAVAX/OSMO was announced
Surprisingly , the trading volumes are not so different from the ones on Osmosis for the moment
That's quite interesting since the liquidity of WAVAX on Sushi if of course much higher
This is probably due to the OSMO incentives given to liquidity providers on Osmosis so it may just be temporary
In fact in the last days WAVAX swap volumes on Osmosis have been going pretty down and the liquidity seems to be stabilising
On the right you have the chart about the cumulative amount of LP tokens in the WAVAX/OSMO pool.
The liquidity in this pool appears to be stabilising
Some transactions data are missing for sure in the flipside database, that's why the impossible number below 0 between Jan. 27th and 30th