QUESTIONS BOUNTY

• How has the ratio of liquid to staked OSMO changed overtime?
• Are the top 100 OSMO holders the same now as they were at the start of the year?
• What is the current average OSMO per wallet? How has that value changed over time? Plot average OSMO/wallet against user growth.
• Do wallets normally hold a majority of OSMO, or another token? How has this changed over time?

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.

What Makes Osmosis Unique?

The Osmosis blockchain protocol has three key strengths that set it apart from other AMM money market protocols.

First, Osmosis has customizable liquidity pools. Unlike Uniswap, where LPs can provide liquidity only to a two-token pool with an equal ratio, Osmosis allows for providing liquidity to pools with several tokens and unequal ratios. Osmosis argues that agents in a maturing DeFi market like arbitrageurs and LPs need a more flexible solution that allows them to self-identify opportunities and react to them by adjusting parameters. Thus, on Osmosis LPs can adjust factors slippage, transaction fees, and more.

Coordination between stakeholders is of equal importance, which is why liquidity pool shares on Osmosis are not only used to calculate the fractional ownership of a liquidity pool, but also the right to participate in the strategic decision-making of the liquidity pool as well. This incentivizes long-term liquidity provision and prevents possible vampire attacks from other protocols. Thus, liquidity providers with more skin in the game get a bigger say in the strategic direction of the pool, which is in line with the bigger risk they're taking.

Finally, Osmosis introduces the idea of "AMMs as serviced infrastructure." With an increase in the amount and complexity of DeFi products, AMMs have had to:

• Compromise efficiency and trade on AMMs with non-optimal bonding curves.
• Take on the risk of building a custom AMM to maximize efficiency.

Osmosis wants to remedy that by providing AMM creators with an option to define the bonding curve value function and reuse the rest of the infrastructure using Osmosis' products.

The chart below shows the ratio of cash OSMO to staked OSMO every day since December 2021

chart above shows that ratio has been bullish over time, indicates that users tend to have their OSMO as liquid rather than staked and as we see for most of the time liquid volume of OSMO has been two times of staked volume of OSMO and this ratio maxed out on Oct 24, 2022 with 2.85

3 bar charts below shows 3 groups of holders which are top 100 with most OSMO volume in the new year, in current time and third group are the ones that are in both previous groups

As shown on bar charts above, out of the top 100 holders of OSMO, 68 holders also hold other currencies and it seems that the holders also hold other tokens in addition to OSMO.

299K shows the volume of OSMO that each OSMO holder wallet holds averagely and as we see the average has been bearish over time, which means OSMO holders tend to reduce their held OSMO over time, though we see huge spike on Dec 14, 2022 that the average got two times over a night but reduced after that for rest of the time frame.

Area chart above shows that user growth speed has been reduced over time like average OSMO per wallet over time

as we see during first month of time frame until end of July we have highest speed in user growth and highest peeks of average OSMO per wallet.

As we saw above out of 100 top holders hold other currencies which they are shown in pie chart above with the amount of their held volume.

As we see top three held tokens are Cosmos, TerraClassicUSD and Luna Classic

FINAL CONCLUSION

As we saw volume of liquid OSMO is increasing and majority of top holders has been changed since 2022 and users tend to held less OSMO in their wallets over time and this seems has influenced user growth which its growing speed has been reduced lately and wallets also hold another tokens like COSMOS.

SPECIAL THANKS

Finally, I wanted to thank my colleague chano10 for helping me to make this bounty and to get all this information.