Introduction

In this Analysis, You will read about Defi on Osmosis. The holidays and New Year are often chaotic in the crypto and DEFI space, as users make a spree of new transactions and wallets as they receive (and give) some cash and coins as holiday gifts.
How has this activity impacted the crypto and DEFI ecosystems?
Are users creating new wallets or buying tokens with their newfound holiday wealth?
Are they staking all those new tokens once they get them?
Or are they selling tokens to pay for their own gifts and holiday travel?

Analyzed by Hess - Reading Time Almost 8 Min.

What is Defi?

Staking, swapping, and farming are all features of the advanced DeFi space in 2022, over a decade after the OG decentralized currency came out.
Decentralized finance offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain.

**Source: **

Defi Overview On Osmosis

As I mentioned, I considered Liquidity, Stake, and Swaps as Defi activities.

Between Defi categories, Swap had the highest number of new users on Osmosis. After Swap, the Stake category had the second-highest number of new Users, and the last category was Liquidity providers.
Osmosis had 15.7K new swappers, 8.8K new stakers, and 3.2K new Liquidity providers.

Liquidity

First, Let’s examine the total transactions between new and old wallets.

It is obvious that old wallets made more wallets compared to new wallets. The total daily number of transactions decreased over time. It was 4-5K in November and decreased to 2K in January 2023. After December 31, The total daily number of transactions increased from 2K to 2.8K.
New wallet liquidity transactions didn’t change too much during the holidays. The daily number of transactions by new wallets was around 300 per day.
Overall, The average number of Liquidity transactions by new wallets was 408 before and 291 after the New Year. Also, The average number of transactions by old wallets was 3.5K before and 2.3K after the New Year.

Did users Create a wallet to join Osmosis Defi or Not?

I compared The total number of new users on Osmosis in Defi and other parts.

The daily share of new Defi users was 75-95%, while other parts had 5-25%, new users. But after December 19, The daily share of new users increased to 80%, and Defi users decreased to 20%. Shortly, In the new year, The daily share of new Defi users increased to 65%.
Overall, 52.3% of new users joined Defi on Osmosis, and 47.7% joined other parts on Osmosis.

Swaps

I analyzed Liquidity pool users and their activities. Now, it's time to examine swap activities.

The total number of transactions by old wallets decreased over time while the number of transactions by New wallets increased. The total number of transactions on December 31 was 19K but increased to 26K in New Year.
The average number of swaps was 27K before and 22K after the New year by Old wallets. Interestingly, the average number of transactions by new wallets was 2.1K before and 3.1K after the New year.

Staking

So Far, I analyzed Swap and Liquidity activities on Osmosis. Now, It’s time to examine the staking activities on Osmosis.

New Users had more stake transactions in the New year. The average number of stake transactions by new wallets was 734 before the New Year and 1K after the New Year.
Overall, Old wallets had more activities on Staking compared to New Wallets. But over time, The activities of new users increased and decreased the difference with old wallets.
The Staking activities increased quickly between December 30 and January 2, 2023, by New Wallets.

What is Osmosis?

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.

Source:

Method

In My Opinion, There are three types of Defi categories for Osmosis.
- Staking
- Liquidity
- Swaps
With min Function, I extracted new users in all the above categories. Then, I counted the total number of new users and compared the average number of users before and after New Year.

For Example, New Liquidity Providers:

min(block_timestamp) as dates,LIQUIDITY_PROVIDER_ADDRESS from osmosis.core.fact_liquidity_provider_actions.

After That, I went through each category and analyzed New and Old wallet Activities. Also, I compared their activities before and after New Year.

All Data is from the last 60 days.

Full Analysis

New Defi Users on Osmosis

What are Defi Users?

I consider Stake, Liquidity, and Swap as Defi Users.

The total daily number of Defi users increased on the Osmosis chain before the holidays. The total daily number of New users in November and the beginning of December was 350-400, but between December 19 and December 24, The total number of new users was up to 838 wallets. After New Year, The total daily number of new users decreased and became like the November.
The average number of new users before the New year was 430, and the average number of new users in the New year was 273 new wallets.

THANK YOU FOR READING!

Conclusion

The average number of NEW Defi Users on Osmosis was 145 before and 125 after the New Year.
About 52% of new users joined Defi on Osmosis, and 48% of new users joined other categories.
The highest number of new users joined the Osmosis swap. The second was Stake, and the third one was Liquidity.
The daily share of Stake Transactions was near 65% in November but decreased to 10% during the holidays, and the swap share increased to 75%.
New Users added more liquidity before the New year compared to after the New year ( Average Transactions )
The average number of swappers and stakers after the New Year was higher than before the New year.
Based on transactions before and after the New year, EVMOS/OSMO was the top Pool.
The Top swapped tokens from and before and after the New Year was Osmosis, Atom, and USDC.
Top validators before and after the new year changed. About half of them were the same.

ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

:bird: Twitter: @0xhess

:t-rex: Discord: hess#0890

:calendar: Analyze Date: 2022/JAN/12

NOTE: THE BELOW CHART IS BASED On TOTAL USERS, NOT ONLY NEW USERS.

Until November 27, The daily share of Stake transactions was between 25-75%, but after November 27, The daily share of swap transactions increased to 76%, and Stake transactions decreased to 10%. Liquidity Activities had 4-10% of shares.
During the New year, The daily share of swap transactions increased by 3-4%, and Stake transactions decreased by 3-4%. Liquidity transactions didn’t change after new year.

Based on the average number of users and transactions, both had higher averages before the New Year than after the New Year.

The average number of swap transactions before the New year was 29K, while after the new year was 25K.
The average number of stake transactions was 20K before and 4.2K after the New Year.
The average number of Liquidity transactions was 4.5K Before The New Year, and it was 3K after the New year.

Liquidity, Swaps and Stake

I analyzed the overview of Defi on Osmosis. Now, It’s time to go deeper into each category and analyze them separately.

Liquidity Providers Breakdown

The large group of new and old wallets had only one Liquidity and added 10-100 Osmo.
The second large group of new added two liquidity while old users added +10 liquidity, and The Liquidity amount was 100-1K Osmo.
The third large group of new and old wallets added three liquidity and the liquidity amount was between 1-10 Osmo.

Top Liquidity Pool

It seems the top pools before and after the new year were similar. There were only a few changes.

The top pool before New Year was USDC/OSMO, and after the New Year was ATOM/OSMO based on the total Osmos amount.
EVMOS/OSMO was the top pool before the New Year based on the total number of transactions. This pool was the top pool after the New Year too.
The second top pool based on total Osmo Amount was ATOM/OSMO pool before the New Year and stOsmo/Osmo after the New Year.
Based on The total number of transactions, The second top pool was USDC/OSMO before the New Year, and ATOM/OSMO was the second top pool after the new year.

Top Swapped Tokens

From Tokens:

Osmosis was the most popular token before and after the New Year. Users swapped 358K from Osmo Before and 73K from Osmo after the New year.
The second top token was Atom before and after the New Year.
The third top token was USDC again before and after the New Year.

To Tokens:

Like Top from tokens, The most popular tokens before and after the New Year were the same.
Osmo, Atom, and USDC are the three top tokens before and after the New year.

Stakers Breakdown

The large group of old users staked more than ten times. This group of users staked between 1-10 Osmo. While the large group of new users staked one time, between 10-100 Osmo.
The second large group of old users staked once, and the stake amount was 1 Osmo. While the large group of new users staked two times, and the stake amount was between 100-1K Osmo.

Top Validators

Top Validators changed a little before and after the new year based on the total staked amount and transactions.
Based on Staked Osmo, Two validators were between top validators before and after the New Year. But after the New year, There were three top validators while they weren’t before the new Year.
Based on transactions, Three validators were between top validators before and after the New Year. But after the New year, There were two top validators while they weren’t before the new Year.

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