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)

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    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

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    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

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    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