INTRODUCTION

What Is Osmosis (OSMO)?

Osmosis (OSMO) is an automated market maker protocol (AMM) for the ATOM ecosystem. Osmosis was inspired by Balancer and Uniswap and wants to provide tools that go beyond traditional token swaps and offer users DeFi functionality for a cross-chain world. For example, developers can build customized AMMs with sovereign liquidity pools and users can launch liquidity pools with unique parameters like bonding curves and multi-weighted asset pools. That means a liquidity pool does not always have to follow a 50:50 distribution between its assets but can be customized according to the wishes of the party setting up the pool.

Osmosis's vision is to build a cross-chain native DEX that connects to all Cosmos ecosystem chains. Later, it plans to expand to non-IBC chains like Ethereum and chains similar to Bitcoin. In this fashion, Osmosis will transfer its unique customizability like custom-curve AMMs, dynamic adjustments of swap fees, and multi-token liquidity pools beyond blockchains in the Cosmos ecosystem.

QUESTIONS

What does a Daily Active User look like on Osmosis? First, plot out how many DAUs there are on Osmosis. For this exercise, consider a DAU would be any wallet transacting on Osmosis a majority of days every week. Once you have the DAUs, what does their activity look like? Do they LP more or swap more? How often do they transfer tokens into Osmosis? Where are these transfers coming from?

SUMMARY

In this dashboard, we came to the conclusion that the majority of Osmosis users are active users and most type of activity or their transactions is Swapping.

Also, the largest number of transferred IBC tokens is the uatom token

In the graph on the left we have analyzed the Daily Activity Users on Osmosis. We can see that the total DAUs has been increasing and has a positive trend, although in the last few months it has been stabilizing. In the daily active users we see a great growth during the beginning of 2022, reaching 18k active users in March. In April the number of users started to decrease and has been stable for months.

In the graph on the left we have analyzed the correlation between DAU LP and Swap activity. We can clearly see a correlation between LP and swaps. We can also see that there is a positive and quite stable trend in both cases. When the LP rises the swaps activity rises as well.

In the second chart we have analyzed the DAU liquidity and swap actions. We see that the liquidity action has a fairly stable trend with no significant spikes. Today there is a liquidity of about 47k. We see that swap actions is much higher than liquidity. In May there was an important peak, reaching 556k swap actions. Then it went down again, but with amounts above 200k.

In the first graph on the we have analyzed the Daily Activity Users transfers behavior. We see that there is a similar trend between incoming and outgoing transactions. In March of this year there was an important peak in both cases, reaching 700 transfers received and 745k transfers made. From February to April, the net transfer drops, as there were more transfers made than received. Afterwards, this amount has returned to the same level.

In the second graph we can see the DAU transfers into Osmosis. We can see that from July 2021 to January 2022 the activity was very low. Then it started to increase reaching a maximum of 700k transfers. In April it plummeted again and the total number of transfers has remained quite stable, reaching 100k

Finally, we have analyzed the main active wallets. First, we look at the top 5 DAU transfers origin. There are two wallets with practically the same percentage of transfers, with 42.9% and 42.1%. Both are from Osmosis. The third wallet with the most transfers is from bostrom, with 6.64%: The remaining 3 wallets are from Osmosis.

In the graph on the right we have analyzed the DAU transfers origin, we can see that in general there is a fairly stable trend, without highlighting any wallet in particular. Even so, we see that there are two important peaks where the same Osmosis wallet predominates. The heaviest peak came in March, reaching an amount of more than 500k transfers.

TOKEN USAGE

The Osmo token (OSMO) is a governance token that allows token holders to decide on the Osmosis protocol's strategic direction and future modifications. OSMO is expected to be used primarily for the following purposes (but governance may decide to add or remove some of them):

Staking: At the consensus level, OSMO is the staking token used by validators and delegators to verify transactions and produce new blocks. These contributors receive inflation rewards for contributing resources to the network. Governance: OSMO token holders can participate in on-chain governance by creating and voting for governance proposals. such as allocating liquidity mining rewards for liquidity pools or setting the base network swap fee. The team and community have also deployed OSMO tokens as part of the network's liquidity mining program. Users can earn OSMO tokens by depositing liquidity into Osmosis pools. Liquidity mining is a popular growth hack for incentivizing liquidity, making AMMs a more attractive venue for traders.

FINAL CONCLUSIONS

• The total DAUs has been increasing and has a positive trend,
• In the daily active users there is a great growth during the beginning of 2022, reaching 18k active users in March.
• In April the number of users started to decrease.
• There is a correlation between LP and swaps.
• There is a positive and quite stable trend in both cases.
• When the LP rises the swaps activity rises as well.
• The liquidity action has a fairly stable trend with no significant spikes.
• Today there is a liquidity of about 47k.
• Swap actions is much higher than liquidity.
• In May there was an important peak, reaching 556k. Then, it went down again.
• There is a similar trend between incoming and outgoing transactions.
• In March 2022 there was an important peak in both cases, reaching 700 transfers received and 745k transfers made.
• From February to April there were more transfers made than received.
• There are two wallets with practically the same percentage of transfers, with 42.9% and 42.1%. Both are from Osmosis.
• The third wallet with the most transfers is from bostrom, with 6.64%.
• In the DAU transfers origin there is a fairly stable trend, without highlighting any wallet in particular.
• There are two important peaks where the same Osmosis wallet predominates.

SPECIAL THANKS

Finally, I wanted to thank my colleague cristinatinto for helping me to make this bounty and to get all this information.