The Unstakeeeeers

How frequently do users on Osmosis unstake their Osmosis? What do they do with the OSMO once unstaked?

Introduction

What is Osmosis?

Osmosis is an advanced automated market maker (AMM) protocol that allows developers to build customized AMMs with sovereign liquidity pools. Built using the Cosmos SDK, Osmosis utilizes Inter-Blockchain Communication (IBC) to enable cross-chain transactions.

Osmosis allows users to launch liquidity pools with unique parameters, like bonding curves and multi-weighted asset pools. The incentive structure of Osmosis is also adaptable. Governance implements liquidity reward (LP) rewards for specific pools, allowing for strategically targeted incentives.

Osmosis is a fair-launched, customizable automated market maker for interchain assets that allows the creation and management of non-custodial, self-balancing, interchain token index similar to one of Balancer.

objective

How frequently do users on Osmosis unstake their Osmosis? What do they do with the OSMO once unstaked? Do they re-delegate, enter a LP position, or swap into another token? Do they re-delegate to certain validators more frequently than others? Why might this be so?

Analysis

I start with first analyzing the unstaking trend over time and see if there are any trends, spikes, etc over the last 3 months

There are 2 important peaks in the graph.

May 12 2022. this after the terra crash.
June 13, 2022 . This because of the exploitation of a bug in the smart contract by users.

We see that most users stake their osmo for a duration of 25-125 days. Very few people stake for more than 250+ days.

We see that around 40 % of the users who unstake indulge in transfer and 35% indulge in swaps.

It also appears that 22 % become liquidity provider.

In the last 3 months,

a validator named Sentinel dVPN is the highest gainer while

Thanos.one | I am... inevitable is the second highest gainer.

Conclusion