Introduction

Osmosis is a decentralized exchange (DEX) and automated market maker (AMM) protocol for the Cosmos ecosystem. To understand the specifics of Osmosis, it’s helpful for you to know the context of the Cosmos ecosystem upon which and for which it is built. Cosmos is an overarching ecosystem of blockchain networks that can connect with one another as part of Cosmos’ mission to build an “internet of blockchains.” Interoperable decentralized applications (dApps) on these various networks communicate with each other and send tokens and data back and forth via Cosmos’ Inter-Blockchain Communication (IBC) Protocol.

The Cosmos Hub is the mainchain that serves as the central ledger and primary blockchain protocol to connect with other blockchains in the Cosmos Network. It is a Proof-of-Stake (PoS) blockchain built by the Ignite team and uses ATOM as the native token for voting, staking, and transactions. Cosmos also provides a software development kit (SDK) to enable projects and teams to build on its network. Now that we have a surface-level understanding of Cosmos and how it operates, we can dive deeper into Osmosis.

Source:

Question

Like most assets in the last two years, DOT saw a meteoric rise in 2021 followed by a crater in 2022.

However, DOT there still remains a little bit of DOT liquidity and volume flowing through Osmosis.

Is the trading activity of DOT on Osmosis real user activity, or is this just arbitrageurs? How many users are active in Pool 773 every day, week, month?

Methodology

For identify arbitrageurs on swaps I used 2 factors:

1-Users made money by purchasing the token at a discount and then selling it.

2-They have more swaps than others

In this dashboard I used 3 sections for my analysis:

1-Pool Activities

1-Transactions

2-Users

3-USD volume inflow and outflow

2-Trading Activities

3-Arbitrageurs

In the first section for analyse the pool 733 activities I used these analysis:

1-Total number of joining DOT/OSMO(pool 773) transactions per day

2-Total number of exiting DOT/OSMO(pool 773) transactions per day

3-Joining and exiting the pool transactions per day

4-Cumulative number of joining and exiting the pool 773 transactions

5-Transactions volatilitis of Pool 773 per day

6-Average number of joining VS exiting the pool 773 per day

7-Total number of Unique users who joined the DOT/OSMO pool

8-Total number of Unique users who exited the DOT/ OSMO pool

9-Number of DOT / OSMO pool users

10-Total number of users Volatilities on DOT / OSMO

11-Number of new users in the DOT / OSMO pool

12-Cumulative Number of new users in the DOT / OSMO pool

13-Average $USD volume of joining or exiting the DOT/ OSMO pool per day

14-$USD volume of DOT/ OSMO pool based on number of transactions

15-The period of users being on the pool 773

16-Joining the DOT / OSMO pool $USD volume per day

17-Exiting the DOT / OSMO pool $USD volume per day

18-Joining and exiting DOT / OSMO pool USD volume

19-Total $USD volume Volatilities on DOT / OSMO

20-Joining the DOT / OSMO pool by number of actions volume per day

21-Exiting the DOT / OSMO pool by number of actions volume per day

In the second section I mentioned trading activities and swaps:

1-Total number of trading activities by day on pool 773(and cumulative chart)

2-$USD volume of trading on pool 773 per day (and cumulative chart)

3-The number of swaps based on $USD volume of swaps on $DOT

4-Daily number of swaps based on $USD volume of swaps on $DOT

5-Daily number of swaps to VS from $DOT

6-Daily $USD volume of swaps to VS from $DOT

And in the last section I studied arbitrageurs and their portion from all tradings:

1-Top 10 $DOT arbitrageurs with their number of arbitrage

2-Top 10 $DOT arbitrageurs with their $YSD volume of profit

3-$USD volume of swaps (arbitrageurs VS other traders) on $DOT

4-Daily number of swaps (arbitrageurs VS other traders) on $DOT

5-What Percentage of trading activity of DOT on Osmosis belongs to arbitrageurs?(Number of swaps)

6-What Percentage of trading activity of DOT on Osmosis belongs to arbitrageurs?($USD volume)

Analysis

Pool Activities

Transactions

Findings

It is obvious that the number of transactions entering the pool 773 decreased over time, whereas the number of transactions leaving the pool 773 has remained essentially constant over time. Users are gradually leaving the pool as a whole.

Findings

The cumulative chart shows that there are far more transactions that belong to joining the pool than there are transactions that belong to leaving the pool, but as time goes on, fewer people are joining, and the cumulative chart reaches a plateau.

Findings

In October 2022, there were more pool transactions, but after a while, things returned to normal. additionally, there are approximately 14 times as many transactions per day related to joining the pool as there are per day related to exiting the pool.

Users

Findings

It is clear that over time, the number of unique users joining pool 773 decreased while the number of unique users leaving pool 773 essentially remained constant. As a whole, users are gradually leaving the pool.

Findings

The number of distinct users entering or leaving the pool increased in October 2022, but then it returned to its initial state. Furthermore it is evident that many more unique users have entered the pool than have left it over time.

Findings

In August 2022, there were a lot of new users who joined the pool, but after a while, that number started to decline. The cumulative chart also supports this fact that there was a plateau in the number of new users joining the pool.

USD Volume Inflow and Outflow

Findings

We can observe that the cumulative chart reached a plateau as the $USD volume of entering the pool 773 dropped with time. However, the amount of money leaving the pool in USD has been rising over time, and there is no indication that it will be diminishing.

Findings

The activities of the $USD volume of the pool are very high, and in recent days, users have been leaving the pool in an increasing amount of $USD. and the volatility chart demonstrates the recent days' high volatility.

Findings

More user have volume of less than 10$ and the number of users with more than 1000$ is very few in this pool.so the whales are not active in the pool 773.but more volume of exiting the pool are about 10$-100$.and it means that the average $USD volume of leaving the pool is more than joining the pool.

Trading Activities

Findings

The number of swaps related to pool 773 is shown in these 2 charts and it is clear that in recent weeks both $USD volume and also the number of swaps decreased.In november we had a surge in the number of swaps but this upside can’t bee seen in the $USD volume of swaps

Findings

Most of swaps related to $DOT are swaps with the volume of less than 10$a and the number of swpaps more than 1000$ are very few.and the daily chart show that the average volume of swaps is almost unchanged over time

Arbitrageurs

Findings

There are 4 wallets that are making most arbitrage in the swaps related to $DOT and the first arbitrageur made about 4500$ over time and also this wallet made about 780 transactions for this profit.

and the method that I have used to identify these usere is that they have to have a lot of swaps with profits.

Findings

The 50 top arbitrageurs make about 20 percent of all $USD volume of swaps related to $DOT and when the volatility of price is high these users make more swaps and so make more money and in some points this users making most $USD volume of swaps related to $DOT and in some point their $USD volume is not so much

Conclusion

• The number of transactions entering the pool 773 decreased over time, whereas the number of transactions leaving the pool 773 has remained constant over time. Users are gradually leaving the pool as a whole.

• In August 2022, there were a lot of new users who joined the pool, but after a while, that number started to decline.

• $USD volume of entering the pool 773 dropped with time. However, the amount of money leaving the pool in USD has been rising over time, and there is no indication that it will be diminishing.

• More user have volume of less than 10$ and the number of users with more than 1000$ is very few in this pool.so the whales are not active in the pool 773.but more volume of exiting the pool are about 10$-100$.and it means that the average $USD volume of leaving the pool is more than joining the pool.

• In recent weeks both $USD volume and also the number of swaps decreased.In november we had a surge in the number of swaps but this upside can’t bee seen in the $USD volume of swaps.

• There are 4 wallets that are making most arbitrage in the swaps related to $DOT and the first arbitrageur made about 4500$ over time and also this wallet made about 780 transactions for this profit.

  and the method that I have used to identify these users is that they have to have a lot of swaps with profits.

• The 50 top arbitrageurs make about 20 percent of all $USD volume of swaps related to $DOT and when the volatility of price is high these users make more swaps and so make more money.