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Introduction
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In This Analysis, You will read about pools on Osmosis. We want to know how users join pools on Osmosis.
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Do they dive in headfirst (add both assets; join pool) or do they wade in carefully (single side; join swap extern amount in).
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I went through Osmosis pools and analyzed these parameters:
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Users
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Transactions
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Volume
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Average Volume
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Top tokens
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Breakdown
Analyzed by Hess - Reading Time Almost 7 Min.
What is Osmosis?
- Osmosis is a DEX protocol, which means it uses smart contracts to determine the price of digital assets, to produce liquidity via a peer-to-peer (P2P) methodology, and to exact trades between users. This approach to an exchange platform is known as an AMM — a DEX protocol that prices crypto assets in liquidity pools.
Volume
So Far, We examined the total daily number of users and transactions but These are not the risk factors. Let’s examine the total daily volume of LPs.
- with a huge difference, A huge volume went through Both side’s LPs. Especially, the volume that went through both side pools in October and November.
- Overall, Nearly 9.8B US dollars went through both side LPs and only 771M US dollars went through single side LPs in the last 365 days.
- So, Not we can say that most users dive in headfirst.
Users and Transactions
Let’s examine the user’s behavior based on three metrics. Users, Transactions, and volume. First, let’s examine the total number of users of each deposit type.
- Until June 2022, The total daily number of both sides of LP users was higher than the total number of single-side users. But after that time, The total daily number of single-side lp users increased a little. The difference isn’t too much. Still some days, The total daily number of both side’s LPs was higher than the single side.
- It seems, When the market is in a better position, Users dive in headfirst but when the Market is in a bad position, Users wade in carefully.
- Overall, 140K Unique wallets opened both sides of liquidity and around 89K unique wallets opened single-side liquidity.
Users Breakdown
It seems there is a relation between the user’s wallet size.
- As you can see, The highest number of users with below 10 US dollars volume, Opened single side LPs. While users with higher volume opened both side LPs. Only the group of users with below 10 US dollars opened more than 60% single side LPS other groups opened both sides more.
Top Tokens
Besides the time, I examined the user’s behavior based on tokens, transactions, and volume.
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Based on Volume, I can see some tokens that had only both side LPs. Like LUNC, STARTS, USDC …. Also, There were tokens that only had Single side LPs. Like LUM or AKT. These tokens are based on the top 10 of each category.
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Based on Transactions, DSM had only single-side LP. The highest share of transactions belongs to both sides of LPs. Among popular tokens, Juno and Osmo had nearly 30% share of single-side transactions. Atom tokens had only 15% single-side transactions.
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PARAMETER GUIDE: YOU CAN CHANGE THE CHARTS DATE AND SEE YOUR SELECTED DATA ANALYSIS BY CHANGING THE N_DAYS NUMBER. 365 MEANS THE LAST 365 DAYS.
Full Analysis
- The daily share of transactions shows the daily share of Single side transactions increased over time. The daily share of both side liquidity decreased from 79% to 43%. On the other side, The daily share of single side pool increased from 16% up to 62% over time.
- Overall, 57.5% of transactions were for both side LPs and 42.5% were for single side pool.
THANK YOU FOR READING!
ALL CODES AND CONTENTS WERE WRITTEN BY HESS.