Introduction

• In this Analysis, You will read about the Osmosis chain.

We want to know the typical user journey through Osmosis. Analyze the following:

• The most common ways of entering Osmosis (Axelar (Satellite) or elsewhere)
• The most common asset transferred into Osmosis for the first transfer

Stay or leave:

• What do wallets do when they first come to Osmosis?
• Join to swap and then transfer that asset out?
• Join in staking OSMO?
• Join to swap and then LP?
• Which assets are most commonly swapped for and transferred out?
• Which assets are most commonly swapped for and then LP'd?

Analyzed by Hess - Reading Time Almost 10 Min.

What is Osmosis?

• Established in 2021, Osmosis is a multi-chain AMM built for the Cosmos ecosystem. The DEX offers interoperability between blockchains using Inter-blockchain Communication Protocol (IBC) and Axelar, which facilitate the connection of blockchains within a decentralized infrastructure.

First Activity After Entering Osmosis

• ‌Based on the first activity of users after entering Osmosis from multiple chains, Swap is the top activity for users. The daily share of swap transactions was around 50-55%. The second top activity was transferred with 30-35%. Adding liquidity had the lowest share compared to other activities.

Top Swapped Tokens After Entering Osmosis

I extracted the top tokens that users swapped from and to as their first swap after entered to Osmosis.

• Swap TO:
  • The Atom token with 10.9K swaps was the most popular asset users swapped to after entering Osmosis.
  • The second top token was Osmo ( the Native token of Osmosis ) that users swapped to. USDC, Evmos, and Juno were the top tokens that users swapped.
• Swap From:
  • Like swaps, Atom was the most popular token that users swapped from.
  • Evmos, Osmos, USDC, and JKL were the top tokens that users swapped from after entered to Osmosis.

Method

• Axelar Satelite:
• I used axelar.core.fact_msg_attributes and filtered ATTRIBUTE_KEY with destinationChain. Now, I have bridge transactions. Following that, the destination chain is recorded in the ATTRIBUTE_VALUE column. After that, I joined my findings to that table again and filtered ATTRIBUTE_KEY = 'spender' to find users. All I needed was the bridge amount per token. So, Again, I used that table with my findings and filtered MSG_TYPE = 'coin_spent'. I used the JacktheGuy method and calculated the amount and token.
• case when attribute_value like '%uaxl%' then 'AXL' when attribute_value like '%uusdc%' then 'USDC' when attribute_value like '%ibc/6F4968A73F90CF7DE6394BF937D6DF7C7D162D74D839C13F53B41157D315E05F%' then 'UST' when attribute_value like '%ibc/9117A26BA81E29FA4F78F57DC2BD90CD3D26848101BA880445F119B22A1E254E%' then 'ATOM' when attribute_value like '%weth-wei%' then 'ETH' when attribute_value like '%ibc/4627AD2524E3E0523047E35BB76CC90E37D9D57ACF14F0FCBCEB2480705F3CB8%' then 'LUNA' when attribute_value like '%wbtc-satoshi%' then 'WBTC' end as token_name

IBC Transfers:

• I used the Osmosis Transfers table and filtered all transactions with the transfer type: IBC_TRANSFER_IN. Then, I hard-coded the senders to find the chain names.

• case when sender ilike '%cosmos%' then 'Cosmos' when sender ilike '%evmos%' then 'Evmos' when sender ilike '%juno%' then 'Juno' when sender ilike '%secret%' then 'Secret' when sender ilike '%terra%' then 'Terra' when sender ilike '%stride%' then 'Stride' when sender ilike '%kujira%' then 'Kujira' when sender ilike '%stars%' then 'Starts' when sender ilike '%regen%' then 'Kujira' when sender ilike '%axe%' then 'Axelar' else 'Other chains' end as chains.

• Now, I have Senders and chains. I extracted the first transactions of users after Entering the Osmosis chain. So, I used my findings in Swap, Liquidity, Staking and Transfers table.

What is Axelar Satelite?

• Satellite is a web app built on top of the Axelar network. Use it to transfer assets from one chain to another.

  Using Axelar's SDKs, any smart contract developer can seamlessly call a contract on another supported chain with a simple asynchronous call. The simplest form of cross-contract calls is bridging.

Full Analysis

THANK YOU FOR READING!

ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

:bird: Twitter: @0xhess

:t-rex: Discord: hess#0890

:calendar: Analyze Date: 2023/01/03

Transfers to Osmosis Chain ( Per Chain )

First, Let’s check the total daily number of users and transactions that transferred their assets from other chains and Satelite to the Osmosis chain.

Note: Transactions and users mean how often users used IBC Transfer or Satelite bridge to transfer their assets to Osmosis Chain**. Users are unique per day.**

• Based on the number of users that Entered Osmosis, Most users came to Osmosis from the Cosmos chain. After Cosmos, the Evmos chain is in second place with the highest number of users that transferred their assets to the Osmosis chain.
• Over time, The total number of users that transferred their assets to Osmosis decreased. For example, As you can see, During October, Nearly 2-2.5K users came from Cosmos to Osmosis but recently reached 1.5K. Satellite, Terra, and Kujira had the lowest number of users that users transferred their assets from those chains to Osmosis.

Top Transferred Assets to Osmosis Chains

So Far, We have examined the total number of users, Transactions, and volume per chain. Now, It’s time to examine which assets transferred most to the Osmosis chain.

• The top token based on the total number of unique users was Atom, with 48K unique wallets, and based on the share of transactions, Evmos, with 22.6% of transactions, had the highest shares compared to other chains.
• Based on unique users, the Evmos token, with 25.7K, and the Juno token, with 19.2K, are in next place.
• Based on Transactions, Atom, with 17.9% of total transactions, is in second place, and Boot token, with 13.3% of total transactions, is in third place.

Stay or Leave? ( After Swap )

Stay or Leave? I analyzed user’s behavior after their first swap when they entered Osmosis. We want to know if users left the Osmosis after the swap, stayed in Osmosis, and made other transactions.

• The daily share of Left transactions ( Transfer out from Osmosis ) was 28% in October but, over time, increased from 28 to 40-50%. Overall, 40% of users left Osmosis after the swap, and 59% of users stayed on Osmosis.

Top Destinations After Swap

• After the Swap, Most users transfer their swapped assets to the Cosmos chain. About 56% of total users went through Cosmos. After Cosmos, With a huge difference, Evmos and Juno's chains are two popular destinations after the swap.
• Terra, Kujira, and Stride had the lowest number of users.

Adding Liquidity Vs. Other Activities ( After Swaps )

Which assets are most commonly swapped for and then LP'd?

• First, I analyzed the total daily liquidity and other transactions after the swap. The total daily number add liquidity was around 10-18 after the Swap. Overall, 897 users added Liquidity after the swap compared to 36K other transactions. In the next section, I’ll examine the top assets/pool that users added liquidity after swap.

Top Assets and Pools ( After Swap )

• Pool/Assets: Atom was the top asset that users swapped after entered to Osmosis, then added Liquidity to the Atom/Osmo pool. The second top asset was USDC which added Liquidity to USDC/OSMO pool.
• Top Assets transferred out from Osmosis: Atom was the top token that users transferred out from Osmosis, and the second top token was OSMO.

Based on Users, Cosmos had the highest number of users, and Kujira, Satellite, and Terra had the lowest number of users that transferred their assets to Osmosis chains. Now, It’s time to examine the total number of transactions.

• Unlike Users, Cosmos users didn’t have the highest number of transactions. Instead of Cosmos, Evmos users had the highest number of users since October 2022. After Evmos, I can mention Cosmos and Juno chains.
• The daily share of Evmos transactions was around 20% in October but decreased in January 2023 and reached 13-15%. Satellite and Juno shares took Evmos shares because the share of Satellite increased from 1-2% in October to above 10% in January 2023.

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• Overall, If we ignore other unpopular chains, Evmos, with 18% of total transactions, had the highest number of transactions to Osmosis. Following Evmos, Cosmos with 14.2% and Juno with 9.45% of transactions are next. Axelar Satellite had only 3% of transactions. So, Most of the users came to Osmosis from other chains rather than Axelar Satellite.

• Based on the total number of unique users, Cosmos, with 48K unique users, had the highest number of users that transferred their assets to the Osmosis chain compared to other chains. After that, Other unpopular chains had 46K unique users.

• Among popular chains, Evmos, with 25.8K unique users, and Juno, with 21K unique users, are in the next place.

Transferred Volume to Osmosis ( USD )

• Based on the Total transferred Volume to Osmosis, Cosmos, with a huge difference from other chains, Had the highest volume in USD. After Cosmos, the Axelar chain, with 37M US dollars, is in second place. Users transferred 5.6M US dollars via Axelar Satellite to Osmosis. So, Again, The higher volume transferred to Osmosis vis chains instead of Axelar Satellite.

• Stride, Starts, Kujira, and Juno had the lowest volume compared to other chains.

  Note: There were some transactions with the wrong Decimal. I couldn’t find all of them. So, The data has some missing volume.

• Until November 15, the Evmos chain was the second top chain with higher volume than other chains, but after that, Day by day, Axelar volume to Osmosis increased and took Evmos's place.

Overall, The First activity of 40K users was swapped. Transfer with 25.5K users was the second top activity when users entered to Osmosis chain. Staking and Liquidity had the lowest number of users compared to other activities.

Conclusion

• The highest number of users came from the Evmos chain to Osmosis.

• The highest number of transactions and volume came from Cosmos to Osmosis.

• The swap was the top activity after entered to Osmsosi. After that was transferred out from Osmosis.

• Atom was the most popular asset users swapped from and after entering Osmosis.

• 59% of users stayed on Osmosis after the swap, and 41% left Osmosis.

• Cosmos chain and Atom tokens were top destinations, and asset users swapped and transferred from Osmosis.

• Only 839 users added liquidity after Swap, and Atom was the top asset that users swapped and added LP after that.