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OSMO

Osmosis  

#OSMO

OSMO Price:
$1.10
Volume:
$8.3 M
All Time High:
$11.18
Market Cap:
$0.5 B


Circulating Supply:
455,879,333
Exchanges:
8
Total Supply:
325,000,000
Markets:
37
Max Supply:
Pairs:
31



  OSMO PRICE


The price of #OSMO today is $1.10 USD.

The lowest OSMO price for this period was $0, the highest was $1.10, and the current live price for one OSMO coin is $1.09802.

The all-time high OSMO coin price was $11.18.

Use our custom price calculator to see the hypothetical price of OSMO with market cap of BTC or other crypto coins.


  OSMO OVERVIEW


The code for Osmosis is #OSMO.

Osmosis is 1.2 years old.


  OSMO MARKET CAP


The current market capitalization for Osmosis is $500,563,833.

Osmosis is ranked #74 out of all coins, by market cap (and other factors).


  OSMO VOLUME


The trading volume is big today for #OSMO.

Today's 24-hour trading volume across all exchanges for Osmosis is $8,319,106.


  OSMO SUPPLY


The circulating supply of OSMO is 455,879,333 coins, which is 140% of the total coin supply.


  OSMO BLOCKCHAIN


OSMO is the native coin for the Osmosis blockchain.

View the full list of Osmosis blockchain tokens.


  OSMO EXCHANGES


OSMO is integrated with many pairings with other cryptocurrencies and is listed on at least 8 crypto exchanges.

View #OSMO trading pairs and crypto exchanges that currently support #OSMO purchase.


  OSMO RESOURCES


Websiteosmosis.zone
Whitepaperdocs.osmosis.zone
Twitterosmosiszone
Redditr/OsmosisLab
Telegramosmosis_chat
Discordosmosis
Mediumosmosis


  OSMO DEVELOPER NEWS



Thoughts on Osmosis and Bridges

Recent community discussion surrounding Cosmos-Ethereum bridges and Osmosis’s credible neutrality has highlighted some important concerns. We wanted to contribute to the active and at times passionate governance participation in the ecosystem by providing commentary as to how we think about the role of bridges in the Cosmos ecosystem and Osmosis specifically. Bridged assets are not fungible: ETH arriving across Gravity Bridge vs. ETH arriving from Axelar are two different tokens within Cosmos. This challenge is replicated with all ERC20 assets. Were Osmosis to support both versions of ETH on the front end, ETH1 and ETH2 would both appear when swapping. Rather than one liquidity pool for OSMO/ETH, there would be two: OSMO/ETH1 and OSMO/ETH2. This comes with significant detriment to user experience and dex liquidity. — User Experience. — Osmosis seeks to one day overtake centralized exchanges. Therefore, the interchain user experience is one of the main pillars of Osmosis. If decentralized exchanges are going to appeal to centralized exchange users, the decentralized user experience must meet or exceed the centralized exchange user experience. The app.osmosis.zone frontend has already taken inspiration from the UX flows of centralized exchanges, such as in the Deposits/Withdrawal flows on the assets page. On a centralized exchange, there is one version of each asset. Users have come to take this for granted, and decentralized exchanges should endeavor to meet this expectation. Like the 70 million customers on Coinbase, defi users just want a quick and easy way to buy ETH. Most don’t want to think about comparative bridge risk.Coinbase Assets List At present, most defi applications in ecosystems with multiple bridges make this entropy painfully transparent to the user. Take the Saber DEX on Solana as an example. At present, there are eight versions of USDT depending on its originating bridge and ten of USDC, distinguished only by a cacophony of cryptic prefixes and suffixes. The intent is to provide clarity; for most users, however, it only serves to confuse.Sunny Aggregator Interface for Saber DEX Pools By comparison, Osmosis made a different decision from the outset to use IBC as its native bridging solution given IBC’s security, trust-minimization, and ability to maintain a single reference token. Suppose someone deployed a bespoke bridge between the Cosmos Hub and Osmosis, resulting in two representations of ATOM on Osmosis: ATOM-IBC and ATOM-nubridge. This would cause confusion and fragment liquidity. Therefore, Osmosis incentives are directed toward a single canonical ATOM that is defined as the asset sent over IBC channel-0, as noted in the osmosis assetlist. Rather than supporting multiple versions of ATOM arriving over different channels or indirect IBC routes (i.e. Cosmos Hub -> Akash -> Osmosis), Osmosis shows and concentrates liquidity around a single ATOM. — Fragmented Liquidity. — User experience aside, maintaining a single reference token improves liquidity and therefore DEX utility and economics. Constant product AMMs provide lower slippage when they have more liquidity. With multiple versions of an asset, multiple pools would arise, fragmenting liquidity, providing inferior pricing to traders, and reducing the utility of Osmosis as an exchange. — Service Providers and Credible Neutrality. — To maintain a single canonical representation of bridged assets on Osmosis, we were faced with two options. The first is to integrate the bridge software into the Osmosis chain itself, run by Osmosis validators, giving it the same security properties as the chain itself. This is the approach taken by many DEX chains such as Injective and Gravity Bridge software, Thorchain and Bifrost, or Sifchain and Peggy. The second is to “outsource” bridging to external “service providers”, to spend our limited time and resources focused on building the DEX and DeFi platform into the best it can be. We have chosen to focus on the second approach. Some have claimed that selecting a single bridge to enshrine as the canonical representation of assets contradicts principles of credible neutrality. However, we interpret the concept of credible neutrality from the perspective of a platform’s relationship to its users, not with its service providers. Using oracle solutions as an example, an oracle should be credibly neutral vis a vis its users, meaning it provides fair and equal access to all users. This is distinct from requiring a lending protocol to integrate with all available oracle solutions, or else be accused of being “anti credible neutrality.” Similarly, the Osmosis protocol needs to choose a bridge solution as its primary service provider for bridging assets from Ethereum. But how does Osmosis choose between providers? Well, just like in picking any service provider from an oracle to a phone service to a plumber, there’s a variety of factors to take into account, including things like cost, features, reliability, customer service, ease of use, and user base network effects. An important thing to note as well, is that mechanisms should be in place to switch service providers if necessary. For example, if the product provided by a new bridging solution is outstandingly better, Osmosis should consider switching. This prevents any incumbent bridging solution from becoming stagnant, as competing providers can compete on providing a better service. However, it should also be noted that the switching costs are quite high, as it will be a massive engineering lift and design challenge to optimize the UX of migrating from one bridge provider to another. For this reason, it is extremely important for Osmosis to choose its initial bridge provider carefully taking into account many criteria. There are a number of EVM <> Cosmos bridge providers such as Gravity Bridge chain, Axelar, and Sifchain Peggy. In the spirit of decentralization, we believe the community should decide which provider to use. However a simple Yes or No vote on the first provider to make a proposal is likely insufficient for a decision of this magnitude. We would like to invite discussion on determining a process that the community can use to best select an initial Ethereum bridge provider. — Fungifying Assets Over Multiple Bridges. — In the future, it may be possible to introduce innovative new mechanisms for fungifying assets arriving from different chains into a single asset representation. This would unify liquidity, and could potentially even enable UXs such as those found on centralized exchanges in which users can withdraw to several chains.Binance USDT Withdrawal Options Once such systems are available, Osmosis can begin to integrate multiple bridge providers simultaneously. However, this is still very much at the research stage, and still quite a ways off. We hope this post helps elucidate our thinking on bridges, user experience, and dex liquidity. Hopefully Interchain defi users can approach this conversation from a different lens and prepare them for what’s around the corner: a portal between Ethereum and Osmosis!(Aleksandr Barsukov/Unsplash) Thoughts on Osmosis and Bridges was originally published in Osmosis on Medium, where people are continuing the conversation by highlighting and responding to this story.




Osmosis Liquidity Mining 101

Osmosis is an automated market maker (AMM) protocol built for liquidity providers. Therefore, it should be governed and owned by liquidity providers. Over time, the largest allocation of OSMO tokens is set aside for liquidity incentives to reward liquidity providers for their contributions and give them an ownership stake in the future of the protocol. The process for earning these liquidity incentives is known as liquidity mining. While many within the Cosmos ecosystem are familiar with concepts like staking rewards and community pools, Osmosis is the first Cosmos project to introduce liquidity incentives. Osmosis aims to be the most innovative AMM across all ecosystems. Osmosis has many planned features in development to improve LP incentives beyond what current AMMs have been able to accomplish. In this post, we will cover the process of how liquidity incentives are chosen, earned, and distributed on Osmosis. Liquidity Providing Providing liquidity (called “LPing”) is the process of depositing assets into an AMM pool. AMMs are decentralized finance protocols that allow for the swapping of assets without a centralized intermediary. Just as trading firms make traditional markets, AMMs establish prices and facilitate trades using permissionless liquidity pools into which users can deposit assets. For example, if Pool #1 is the OSMO<>ATOM pool, users can deposit OSMO and ATOM tokens into the pool and receive back Pool1 share tokens. These Pool1 share tokens (called LP tokens) represent one’s proportional ownership of the pool. Liquidity pools have specific ratios at which assets must be deposited. Most AMMs require that assets be added at a 50–50 ratio (the total value of Asset 1 is equal to the total value of Asset 2). Similar to Balancer protocol, Osmosis allows for pools with customized weights (allowing the total value of one asset in the pool to be higher than the other) and even liquidity pools with more than two assets. Users pay a fee to buy and sell from these liquidity pools. These transaction fees are added to pool assets, essentially resulting in a pro-rata distribution to LP share holders. (Since one’s proportional ownership of the pool remains constant, as the total amount of liquidity in these pools increases due to fees, one’s total contributions also increase.) Liquidity provision is not without costs. LPs take on a risk known as impermanent loss. It essentially means that users would have earned more simply by holding the assets than depositing them into liquidity pools. When the price of the assets in the pool change at different rates, LPs end up owning larger amounts of the asset that increased less in price (or decreased more in price). For example, if the price of OSMO moons relative to ATOM, LPs in the OSMO-ATOM pool end up with larger portions of the less valuable asset (ATOM). Impermanent loss is the difference in net worth between HODLing and LPing. Liquidity mining helps to offset impermanent loss for LPs. Impermanent loss is mitigated in part by the transaction fees earned by LPs. When the profits made from swap fees outweigh an LP’s impermanent loss, the pool is self-sustainable. To further offset impermanent loss, particularly in the early stages of a protocol when volatility is high, AMMs utilize liquidity mining rewards. Liquidity rewards bootstrap the ecosystem as usage and fee revenues are still ramping up. Osmosis also has many new features and innovations in development to decrease impermanent loss as well. Bonded Liquidity Gauges Many AMMs are plagued by short-term mercenary farming, in which liquidity providers quickly remove and add back liquidity from pools in pursuit of the best yields. AMMs sometimes encourage this type of farming through “vampire attacks,” in which a protocol offers special incentives to liquidity providers from other protocols for migrating their liquidity over. If enough LPs are engaging in short-term yield strategies, it can cause a serious disruption to the quality of the AMM. Liquidity within pools becomes volatile, resulting in an inconsistent and unreliable trading experience for users. Instead, with Osmosis we want to build a platform conducive to Long-Term Liquidity. Osmosis reduces short-term farming through two mechanisms: Exit Fees (a small fee LPs pay when withdrawing liquidity from a pool) and Bonded Liquidity Gauges. Bonded Liquidity Gauges are mechanisms for distributing liquidity incentives to LP tokens that have been bonded for a minimum amount of time. 45% of the daily issuance of OSMO goes towards these liquidity incentives. Osmosis users can choose to bond their LP tokens after depositing liquidity. Similar to OSMO staking, LP tokens remain bonded for a certain length of time, except users are allowed to choose the length of their own unbonding period. Staking requires a two-week unbonding period. When a user wants to stop bonding an LP token, they submit a transaction that begins the unbonding period. After the end of the timer, they can submit another transaction to withdraw the tokens. Bonded Liquidity Gauges distribute liquidity incentives to LP tokens with specific bonding lengths. For instance, a `Pool 1 LP share, 1-week` gauge would distribute rewards to users who have bonded Pool1 LP tokens for one week or longer. The amount that each user receives is in proportion to the number of their bonded tokens. A bonded LP position can be eligible for multiple gauges. Qualifications for a gauge only involve a minimum bonding time. Let’s explore with an example: The rewards earned from liquidity mining are NOT subject to unbonding. Rewards are liquid and transferable immediately. Only the principal bonded shares are subject to the unbonding period. Allocation Points Not all pools will have incentivized gauges. In Osmosis, staked OSMO holders choose which pools to incentivize via on-chain governance proposals. To incentivize a pool, governance can assign “allocation points” to specific gauges. At the end of every daily epoch, 45% of the newly released OSMO (the portions designated for liquidity incentives) is distributed proportionally to the allocation points that each gauge has. The percent of the OSMO liquidity rewards that each gauge receives is calculated as its number of points divided by the total number of allocation points. Take, for example, a scenario in which three gauges are incentivized:Gauge #3 – 10 allocation pointsGauge #4 – 5 allocation pointsGauge #7 – 5 allocation points 20 total allocation points are assigned in this scenario. At the end of the daily epochs, Gauge #3 will receive 50% (10 out of 20) of the liquidity incentives minted. Gauges #4 and #7 will receive 25% each. Governance can pass an `UpdatePoolIncentives` proposal to edit the existing allocation points of any gauge. By setting a gauge’s allocation to zero, it can remove it from the list of incentivized gauges entirely. Proposals can also set the allocation points of a new gauge. When a new gauge is added, the total number of allocation points increases, thus diluting all the existing incentivized gauges. Gauge #0 is a special gauge that sends its incentives directly to the chain community pool. Assigning allocation points to gauge #0 allows governance to save some of the current liquidity mining incentives to be spent at a later time. External Incentives Osmosis not only allows the community to add incentives to gauges. Anyone can deposit tokens into a gauge to be distributed. This feature allows outside parties to augment Osmosis’ own liquidity incentive program. For example, there may be an ATOM<>FOOCOIN pool that has a one-day gauge incentivized by governance OSMO rewards. However, the Foo Foundation may also choose to add additional incentives to the one-day gauge or even add incentives to a new gauge (such as one-week gauge). These external incentive providers can also set up “long-lasting incentive programs” that distribute rewards over an extended time period. For example, the Foo Foundation can deposit 30,000 Foocoins to be distributed over a one-month liquidity program. The program will automatically distribute 1000 Foocoins per day to the gauge. Genesis At genesis, the only gauge that will be incentivized is Gauge #0, (the community pool gauge). However, a governance proposal can come immediately after launch to choose which gauges/pools to incentivize. Governance voting period at launch is only 3 days at launch, so liquidity incentives may be activated as soon as 3 days after genesis. Conclusion Allowing governance to shape the liquidity rewards makes Osmosis better equipped than other Cosmos AMMs to bootstrap new pools and to address low liquidity in existing pools. The Osmosis community will be able to formulate strategies with the liquidity rewards to continuously improve the protocol. Over time, new types of Gauges will be added besides Bonded Liquidity Gauges, that distribute incentives using mechanisms besides bonding length. Examples could include trading volume gauges, impermanence loss gauges, and more! We’d love for the community to contribute and propose new strategies of rewarding users of the platform. Osmosis Liquidity Mining 101 was originally published in Osmosis on Medium, where people are continuing the conversation by highlighting and responding to this story.




OSMO Token Distribution

The launch of Osmosis will begin the next epoch in AMM platforms through providing a platform for modular, customizable AMMs. To make such a progressive, adaptable protocol work, governance will be a key factor to Osmosis’ success. Almost every element of the protocol is intended to be upgraded as necessary to keep Osmosis on track to becoming the most innovative AMM platform operating today. Stakeholders will vote and help plan to implement new features for the protocol, like front-running protection, validator-backed oracles, and more. Governance also allows for rapid fine-tuning of existing parameters such as liquidity mining incentives which can be adapted as often as a weekly basis. Along with everything else, governance will also have the opportunity to shape the direction of the protocol’s core tokenomics. The community can decide after launch to revise the token model. In fact, this is encouraged! As new innovations come to the platform, some of which are already in works, the core tokenomics of the system will need to adapt as well. However, to make this work, the community needs to be seeded with an initial distribution and token model which can then be iterated upon. In the post, we will present the initial token model to distribute the native token of Osmosis, OSMO, to stakeholders most aligned with the strategic direction of the protocol.Token Release Schedule Osmosis will have an initial released supply of 100 million OSMO at genesis, split evenly between the Fairdrop recipients and a strategic reserve. The addition of the strategic reserve in genesis is a slight departure from the earlier Vision for Osmosis post, but we believe that the strategic reserve will be crucial in aligning key advisors and to further reward those performing important services for the chain. Unlike most Cosmos SDK chains where tokens are distributed on a per block basis, Osmosis has daily epochs and releases new tokens only at the end of each epoch. Under the initial token model, new tokens would be released according to a “thirdening” schedule. Similar to Bitcoin’s halvening, where token issuance is decreased by half every four years, in Osmosis, the token issuance will be cut by ⅓ every year (365 daily epochs). To expound further, the thirdening schedule works as follows: In the first year, there will be a total of 300 million tokens released. After 365 days, this will be cut by ⅓, and thus there will be a total of 200 million tokens released in Year 2. In Year 3, there will be a total of 133 million tokens released. And so on. This thirdening process will allow OSMO to reach an asymptotic maximum supply of 1 Billion. Newly released tokens will be distributed to a combination of staking rewards, liquidity mining incentives, developer vesting, and community pool according to the following distribution:Staking Rewards: 25%Developer Vesting: 25%Liquidity Mining Incentives: 45%Community Pool: 5%OSMO is highly inflationary at the beginning. Within a few years, the genesis supply will only comprise a small percentage of the total supply.Fairdrop As announced in the Osmosis Vision Post, the genesis supply of Osmosis will include a “Quadratic Fairdrop” to ATOM holders. There will be a total of 50 Million OSMO allocated to ATOM holders based on a snapshot taken during the Cosmos Hub Stargate Upgrade on February 18, 2021. The amount of OSMO that each address receives is proportional to the square root of its ATOM balance at that time, with a special 2.5x multiplier for staked ATOMs. This fairdrop design ensures that all members of the Cosmos Hub are given a fair opportunity to participate in Osmosis, especially those that had helped secure the network through staking. Recipients can view their fairdrop allocation here. — Fairdrop Claims Process. — While the fairdrop gives OSMO to all ATOM holders, we want to make sure we especially incentivize recipients to become active users of the Osmosis platform. For this reason, the majority of the fairdrop must be claimed by recipients by performing a few simple tasks. 20% of an account’s airdrop allocation will be immediately available in their genesis account. To claim the full OSMO allocation, users will need to perform four on-chain activities:Making a swapAdd a liquidity to a PoolStake OSMOVote on a Governance Proposal Performing each of these activities will unlock an additional 20% of the airdrop amount. This process will ensure that airdrop recipients are active users of the protocol. We also want to make sure that the fairdrop goes towards rewarding early adopters of the platform. For this reason, there is an incentive to perform these tasks early. A fairdrop recipient can claim the full total of their OSMO allocation by performing these tasks within the first 2 months after the launch of Osmosis. After the second month, the claimable OSMO per account will decrease linearly over the next 4 months. 6 months after the launch of Osmosis, all unclaimed fairdrop tokens will be transferred to the on-chain community pool.Strategic Reserve At genesis, there will be an allocation of 50 million OSMO set aside in a strategic reserve. This strategic reserve allocation will be controlled by a multisig dao, initially composed of members of the development team, but will be expanded in the future. This strategic reserve is intended to align long-term key strategic partners who will help push forward the Osmosis project through grants and strategic fundraising rounds. The strategic reserve OSMO will not be used to market sell, and any strategic fundraising round participants will be subject to vesting periods. And funds raised by the DAO will be used to fund Osmosis development efforts. At the discretion of the multisig members, the strategic fund may also be used to delegate to validators who are providing high value “above and beyond” services to Osmosis, such as operating infrastructure like block explorers and relayers, or contributing open source tooling/resources to the ecosystem. In order to maintain decentralization of the network, the strategic reserve DAO will not “overstake” such to have a controlling share of the network.Staking Rewards Every epoch, 25% of tokens released will be in the form of new staking rewards issued to validators and delegators who help secure the chain. Validators are entities that operate nodes that participate in consensus of the chain. Over time, validators will be expected to operate more processes for the chain such as price oracles, bridges, and more as the functionality and scope of Osmosis expands. At genesis, there will be slots for 100 validators, selected by highest amount of delegation. Delegators meanwhile delegate their stake to validators who use it to increase their slashable bond for misbehavior. Delegators serve an important active role in the network by being the bonded entities responsible for selecting high quality validators and participating in governance of the chain. Through staking, delegators have strong skin in the game to help govern and operate the network effectively. Rewards are distributed to stakers delegated to a top 100 validator, proportionally to the amount of OSMO staked. However, validators charge a commission rate to their delegators on staking rewards earned. Each validator may choose their own commission rate, but there is a network-wide mandated minimum commission rate. At genesis, this minimum commission rate is set to 5%.Developer Vesting 25% of the released tokens per epoch are in the form of vesting developer rewards. These 225 million OSMO are reserved for the development team, but are non-transferable nor stake-able until they are released. Most importantly, in order to maintain strong decentralization, in a situation where the initial dev team is no longer the primary development team for the network, the chain can choose to reclaim any unreleased tokens from the development team and redirect them to the community pool or towards a new set of development teams via a governance proposal.Liquidity Mining Incentives 45% of released tokens per epoch are designated to go to liquidity mining rewards. LPs will be able to bond their LP tokens in order to earn liquidity mining rewards and governance will get to choose which pools’ LP tokens will be incentivized. There will be a post coming soon explaining the liquidity mining rewards process in much more detail. Over time, there may be new ways of incentivizing liquidity mining, such as Bancor-like impermanence loss protection or other ideas in development. It is suggested that governance use this allocation of tokens to experiment with such new models of incentivization. If governance believes that liquidity mining incentives are too high for achieving the desired effect for the chain, it may also choose to direct a portion of tokens released for liquidity mining incentives towards the community pool, so it may save them in order to be spent at a later time.Community Pool A base 5% of all newly released tokens go directly to the Osmosis community pool. This pool can be spent by Osmosis governance and should be used to improve and build the Osmosis ecosystem. The expectation is for the community to leverage this pool early into the bootstrapping phase to allow useful tooling, infrastructure, educational content, and other resources to be quickly available. The following request for proposals provides a starting point for areas such as tooling, infrastructure, and governance that we believe will improve the usability of Osmosis. We invite our community members to discuss, provide suggestions, and brainstorm ideas on new areas of emphasis that the community pool should be used to incentivize long-term success of Osmosis.Fees At Osmosis launch, there are three primary types of fees: transaction fees, swap fees, and exit fees. Transaction fees are paid by any user to post a transaction on the chain, and is dependent on the computation and storage costs used by the transaction. Minimum gas costs are determined by the proposer of a block in which the transaction is included. Validators can choose which assets to accept for fees in the blocks that they propose. This transaction fee is distributed to OSMO stakers on the network. Swap fees are a fee charged to any trader making a swap in an LP pool. Swap fees are calculated as a percentage of the swap size, and are specific to each pool, as the pool creator can specify the swap fee when creating the pool. Swap fees are charged in the input asset of a swap, and the fees are added to the pool, effectively being distributed to all LPs in a pool proportional to their LP token shares. Exit fees are a fee charged on an LP that is leaving a pool. Exit fees are calculated as a percent of the LP shares trying to be redeemed. The LP shares are burned, effectively distributing their value to all LPs remaining in the pool at the time of exit, proportional to their LP token shares. Similar to swap fees, exit fees per pool are set by the pool creator. OSMO governance may choose to add new types of fees in the future to help bolster the network.Conclusion This token model is created to bootstrap the Osmosis ecosystem with well-aligned incentives for key stakeholders and contributors. However, Osmosis is first and foremost an AMM laboratory. It will become clearer over time how the token model needs to evolve to best support the needs of the project. The Osmosis Labs development team already has features in development that are expected to have impacts on the optimal token model design. Thus, the token model is intended to be adapted and updated by the community over time. Such adjustments to the model can be proposed and voted on through on-chain governance. OSMO holders should feel empowered to change the token model of the chain as necessary to support their vision for the platform. The launch of Osmosis is slated for June 2021. The OSMO airdrop will be claimable for eligible recipients at that time. Further details about the Osmosis launch will also be released in coming days. The connect with the community, please join our Telegram and Discord! OSMO Token Distribution was originally published in Osmosis on Medium, where people are continuing the conversation by highlighting and responding to this story.




Osmosis: A Hub AMM

In recent months, there has been much discussion within the Cosmos community about the potential for a Cosmos Hub-based AMM platform. The potential for such an AMM is what inspired us to begin work on Osmosis in the first place, and we remain committed to making Osmosis the best AMM secured by the Cosmos Hub. We originally considered building Osmosis as a module on the Cosmos Hub directly, but after long analysis, determined that this was not the optimal path for the success of both Osmosis and the Cosmos Hub. In the post, we’ll lay out some of the reasons we came to this conclusion, and explain our vision for the future of the Cosmos Hub and Osmosis’s synergistic relationship with it.Iterate Fast Before we move forward, it’s important to understand the design philosophy of Osmosis to understand the full context. Osmosis is an AMM laboratory: an active testing ground where experimentation on optimizing AMMs for a wide variety of financial assets takes place using the same scientific method which drove human progress forward:Asking a questionHypothesizing a solutionExperimentingCollecting and analyzing the dataDrawing a conclusionIterating based on findings Osmosis isn’t the answer to, but rather the process of, bringing discoveries, innovation, and refinement in the DeFi space. The liquidity providers are the DeFi scientists. Each may have identified problems and inefficiencies that exist in the DeFi market, and have come to hypothesize a diverse set of solutions. The modularity and customization that Osmosis AMM offers is the large array of scientific instruments that scientists use to conduct a wide range of experiments. Through this process (and the tools they have access to), breakthrough innovations in pricing, slippage, and impermanent loss can be observed, shared and eventually move the entire AMM space forward. In order to consistently provide liquidity providers with the latest and greatest tools, the base layer protocol needs to iterate. Fast. The platform will need to frequently add new modules and features such as integration of novel VMs for curve creation, batched transaction pricing, liquidity incentive distribution logic, and advanced x/gov extensions for LP governance. And beyond just the SDK module level, the ideal AMM protocol will need to be able to move quickly on adopting custom low-level features such as threshold decryption for frontrunning resistance, shielded pools for privacy, and validator-backed price oracles for use in custom AMM algorithms. We intend for these new features to come through a rapid series of software upgrades (potentially as frequent as on a monthly basis), which in our opinion isn’t realistic, nor optimal, for the Cosmos Hub. An application deployed on the Hub means that no matter how quickly developers are able to ship new features, the speed of the product’s iteration ultimately depends on how quickly the Cosmos Hub stakeholders are able to assess the risks and come to agreement on deployment.Specialized Governance and Incentive Alignment Beyond software and feature upgrades, Osmosis requires regular participation in more fine-grained on-chain governance of the protocol such as determining the distribution of liquidity mining incentives on a weekly basis, changing global AMM parameters according to market conditions, and the spending of the community pool to encourage the growth of the ecosystem, and more. To succeed at this, Osmosis requires a highly engaged, highly active set of governance decision-makers. While a subset of Cosmos Hub stakeholders may fall into this category, we believe that the best governors of a protocol are its users — those who interact most closely with the protocol. Osmosis is an AMM protocol built for liquidity providers, therefore it should be governed by liquidity providers. This is why the OSMO governance token is necessary so that it can be distributed over time to the ideal set of governance participants. This governance token distribution also serves a dual purpose of acting as a protocol-level liquidity mining incentive, a way to reward those who provide liquidity to the system by giving them an ownership stake in the protocol which they can then use to help guide its direction.Hub as an Application-Specific Blockchain We’ve discussed the social scalability constraints of the Cosmos Hub, but we should also take into consideration the technical scalability limitations as well. As great as the strengths of Tendermint Core and the Cosmos SDK are, on their own, they are not a magic key to infinite scalability. The Cosmos strategy for scalability is through specialization, and it is important to remember that at its core, the Cosmos Hub, is still an application-specific blockchain, albeit a special one. The Cosmos Hub has several high-value characteristics that no other zone has been able to replicate: decentralization, economic security, reliability, and liquid fiat gateways, and a schelling point for innovation on IBC and core protocol developments. However, this doesn’t mean that Cosmos Hub should add every feature onto the hub to leverage its strength. Additional complexities on the hub may cause potential issues with security and reliability. They certainly increase the cost of running the full node software and the complexity of ensuring state correctness. Eventually, the Hub will run into scaling constraints on throughput for its core functions. Rather than trying to host a trading protocol that will create a bottleneck at scale, the Hub should dedicate its throughput and capacity towards the use cases it was designed for. So what are these applications that the Cosmos Hub should be focused on? We identify three:Shared SecurityStaking DerivativesUniversal IBC AdapterShared Security: The Killer Feature Adding complexities to the Hub is a short-term solution which merely delays finding the right solution to a long-term problem: the coexistence of permissionless innovation and incentive alignment. Currently, for a new application to be deployed within the Cosmos ecosystem it must launch as a sovereign zone with its own staking token. While a sovereign zone offers the ability to quickly iterate based on the decisions of highly engaged stakeholders, this comes at the cost of network security guarantees which can bottleneck the number of assets it can safely custody. The solution to this is shared security, which will allow permissionless innovation to happen with the security of the Cosmos Hub. Shared security will allow zones to delegate their consensus security to the Cosmos Hub validators, by allowing delegators to use their ATOMs to secure multiple chains, earning fees and rewards for each chain secured. This offers incentive alignment across a heterogeneous spectrum of application architectures, rather than forcing a decision on the ‘one perfect design’ (which likely doesn’t exist). There is no one perfect DEX model, one perfect smart contracting model, or one perfect stablecoin design. The Cosmos Hub is meant to be a platform, not an application. As such, it should be focused on building the best possible shared security model that will provide a novel alternative to other shared security base layers such as Polkadot and Ethereum 2.0. This is a much more compelling and high value-add application for the Cosmos Hub, tailored to its strengths, rather than making it yet another AMM application.Credible Neutrality The value of shared security is dependent on the trust in the Cosmos Hub’s credible neutrality. If the Cosmos Hub provided its own direct competitor to a given chain’s product, this makes shared security much less compelling for that chain. Ethereum was able to become a hotbed for innovation because the base layer chain was incredibly neutral. If it had its own native built-in stablecoin, this would have been a disincentive for projects like Maker and Fei to innovate and build on top of it. If Ethereum had ordained a specific DEX as its “native DEX”, this would have been a disincentive for projects like 0x and Uniswap to build on top of it. To be the best possible platform for people to build on top of, the Cosmos Hub shouldn’t try to pre-emptively define the winners, and it must instead minimize fears that it will compete with the applications that are trying to build on top of it.Base Money and Staking Derivatives However, one of core functions that the Ethereum base layer does try to compete on is being the reserve asset for the DeFi ecosystem built on top of it. ATOMs are one of the highest market cap IBC-enabled assets, positioning it to be a strong competitor in this space. For example, we predict ATOMs will likely be one of the most popular liquidity pairs within Osmosis. By developing features like Staking Derivatives, this will allow staked ATOMs to flow into other chains to be a core asset, while still accruing staking rewards from the Cosmos Hub and other shared security chains. The combination of liquid staking with DeFi applications innovated on Cosmos zones will be a killer feature for the Cosmos DeFi ecosystem.How will Osmosis launch? Osmosis is launching with a quadratic fairdrop of its entire genesis supply to ATOM holders in order to best align the interests of Osmosis and the Cosmos Hub. The Hub has the most decentralized token distribution amongst all Cosmos chains, secured by high-quality validators and a robust community. Furthermore, the high liquidity and the fiat gateway that the ATOM provides makes it an attractive base asset for many liquidity pool pairs–and even more so once liquid staking is adopted on the Hub. Once shared security is available on the Cosmos Hub, we’d like to see Osmosis transition to using this feature in order to further create synergistic relationships with the Cosmos Hub. Because the security of the Hub is something that is not easily replicated, Osmosis will be able to lease this from the Hub. Meanwhile, stakeholders of the Cosmos Hub will get to benefit from the success of Osmosis through staking rewards and fees, making the two protocols economically aligned. When shared security is ready, it will be up to the OSMO token holders to vote on the switch to shared security backed by the hub. We hope that the Hub will remain credibly neutral so that the choice of switching to this new paradigm is a no-brainer for the Osmosis community. A multitude of AMM platforms will arise in the Cosmos ecosystem and compete with a variety of models, both as sovereign chains and secured by the Cosmos Hub. And of course, we intend that Osmosis will rise to become the predominant and most powerful AMM protocol, and hope to share this journey with the Cosmos Hub. Osmosis isn’t a module on the Cosmos Hub. But it will be a chain of the Cosmos Hub. It is a Hub AMM. Osmosis: A Hub AMM was originally published in Osmosis on Medium, where people are continuing the conversation by highlighting and responding to this story.




Vision for Osmosis

The AMM Laboratory. — Note: This introductory blog post outlines a proposal and a vision of what Osmosis could be and evolve into. It should not be seen as a promise or a guarantee of feature, roadmap, or timeline. Please feel free to follow the development progress here and stay tuned for more updates. The advent of automated market makers (AMMs) brought forth a new wave of crypto-economic utility and applications of bonding curves. Today, AMMs have become such an integral part of blockchain’s use-case that it’d be hard to imagine what the crypto space would look like without it. What began with Bancor then popularized by Uniswap, decentralized exchanges via automated market makers (AMM) have gone through several iterations of evolution, having now been expanded by Curve, Balancer, and other innovative protocols. Yet the customizability offered by those protocols still falls short of their potential of breaking open the market to a wider range of decentralized assets.Enter Osmosis Osmosis is an advanced AMM protocol built using the Cosmos SDK that will allow developers to design, build, and deploy their own customized AMMs. Heterogeneity and sovereignty are two core tenets of the Cosmos ecosystem, and Osmosis takes these two values and extends them into core characteristics of this AMM protocol. Rather than aim for a one-size-fits-all homogeneous approach for AMMs and its liquidity pools, Osmosis is designed such that the most efficient solution is reachable through the process of experimentation and rapid iteration by leveraging the wisdom of the crowd. It achieves this by offering deep customizability to AMM designers, and a governance mechanism by which each AMM pool’s stakeholders (i.e. liquidity providers) can govern and direct their pools.How it works We are excited to share our long-term vision for Osmosis and the features it aims to provide. A more detailed roadmap will be developed and released by the community at a future date. — Designed for Cross-chain Assets. — Osmosis is designed to be cross-chain native. It will have IBC built-in from day 1, allowing it to connect to the entire ecosystem of Cosmos chains and their over $10B of native assets. After integrating native Cosmos assets, Osmosis will integrate with non-IBC enabled chains, including Ethereum-based ERC20s (using the Althea gravity bridge), a variety of chains including Bitcoin-like chains, and alternative smart contracting platforms by leveraging custom pegs. — Customizable curves, fees, and other parameters. — Simple AMMs, while having demonstrated early product-market-fit, will need to evolve alongside the growing complexities of the DeFi market. For example, as demand for swapping similarly valued assets (e.g. stablecoins) increased, the invention of StableSwap by Curve Finance was needed to avoid high slippage for high-volume transactions. But this also meant that a whole new set of AMM infrastructure had to be built outside of Uniswap to accommodate the new feature. In Osmosis, nothing about the underlying structure of AMMs is hard-coded. Not only are key parameters such as swap fees or token weights parameterizable for each liquidity pool, but entire components such as the curve algorithm and TWAP calculation are also fully-customizable as well. Pool creators don’t have to decide between just constant product and constant sum, but can instead input their own novel mathematical expressions. New curves can be generated on the fly. Such new curves can be much more powerful than existing AMM models, which only accept token balance quantities, by leveraging data points such as time dependencies, volatility indexes, and off-chain oracles as inputs. Osmosis’ parameterizable inputs enable the creation of newer DeFi asset types like options, dynamic fee markets that adapt to moments of high volatility, work to mitigate undesirable outcomes like impermanent loss for liquidity providers (LP) Rather than going through the process of launching a new AMM protocol for each AMM model upgrade, curve developers can easily deploy new curves on Osmosis, taking advantage of the existing wallet integrations, IBC connections, orderflow, and liquidity within the Osmosis ecosystem. — LP Governance. — Most AMM protocols set global parameters for all liquidity pools within the AMM. While this significantly simplifies the design of the AMM, it reduces the decision-making that LPs are able to make for the pools they care about. Given that AMMs are such novel protocols, projects competing in the design space are constantly iterating on making better models for them. To stay relevant, pools must keep up with cutting-edge innovations by upgrading curve design, fee models, and more. Furthermore, pools need to be able to change pool weights in order to reflect LP portfolio preferences as well as add and remove assets on-the-go in order to meet market demands (such as adding new stablecoins to a stableswap pool). Governance must be a first-class process in AMM design so that liquidity is not forked away at the advent of every upgrade. Safety procedures such as rage-quit functionality inspired by MolochDao are included in order to provide LP protection against malicious governance attacks. — Liquidity Provider Incentives. — The liquidity providers of an AMM are the most important stakeholders of any AMM protocol. As the success and utilization of AMMs largely depend on the range of assets and liquidity that are available, it is crucial that there is sufficient incentive for liquidity providers to continue to lock their assets into new pools. On top of native OSMO token incentives (see OSMO section), Osmosis allows third parties to easily add incentive mechanisms to particular liquidity pools. For example, if the Cosmos Hub Community Pool wanted to incentivize liquidity for an ATOM/stablecoin pair, they could use Osmosis’s built-in incentives module to distribute $ATOM rewards to LPs who stake their LP tokens. Often, incentive providers want to reward long-term liquidity, not just short-term mercenary farmers. The `incentives` module allows rewards to be weighted towards LPs who timelock stake their LP tokens with longer unbonding periods, essentially committing to providing liquidity to the pool for a longer amount of time, decreasing liquidity volatility of the pools and providing a dependable and consistent experience for traders.The OSMO token The Osmo token is a governance token that provides a decentralized coordination method for token holders to decide the strategic direction and all future changes to the Osmosis protocol. It is anticipated that Osmo will be primarily used in the following functions (although governance may choose to add or remove some of the functions):Voting on protocol upgradesAllocating liquidity mining rewards for liquidity poolsSetting the base network swap fee Governance is a critical component of how Osmosis as an AMM protocol evolves. Because the rate at which Osmosis will be adding new features, and subsequently, software upgrades, is expected to be far quicker than that of the Cosmos Hub, it is important that active stakeholders and liquidity providers are actively engaged in the process of discussing, voting, and passing protocol upgrades. The pools eligible for liquidity rewards will be selected by Osmo token holder governance, allowing the stakeholders to formulate an incentivization strategy that best aligns with the long-term interests of the protocol. The OSMO token will be entirely fair launched and will only be distributed to network participants that contribute resources to the success of the Osmosis network such as liquidity providers, developers, stakers, and more. There will be no sale of premined OSMO tokens. While OSMO will initially function as both a governance token and a staking token, Osmosis intends to transition into a Cosmos Hub shared security zone as soon as the feature is ready. A signaling proposal to finalize this will be put into vote once Osmosis has launched. — Quadratic Fairdrop. — Without shared security at launch, Osmosis still needs a strong decentralized initial distribution and incentive alignment with the Cosmos Hub community. Osmosis achieves this by allocating its genesis supply to Cosmos Hub accounts through a ‘quadratic fairdrop’. Taking inspiration from mechanisms like quadratic voting and quadratic funding, the quadratic fairdrop is meant to decrease the distribution inequality in the new governance set, while still recognizing the contributions of larger stakeholders. It will reward Cosmos Hub accounts that actively participate in independently staking, while reducing the amount of Osmo tokens allocated to ATOMs stored in exchanges and whales. An address’ potential OSMO allocation is proportional to the square root of one’s ATOM balance with a 2.5x multiplier for staked ATOMs. The snapshot was taken at the final block of cosmoshub-3 on February 18, 2021 at 6:00 UTC. The snapshot has already been taken by the time of the posting of this post. The Osmosis airdrop allocation is merely a proposed amount. To ensure that highly active and interested users are incentivized, users will need to participate in several on-chain activities such as governance, staking, and more on the Osmosis network to earn the airdrop allocation. Details of this process will be decided by the community closer to the network launch. To check the maximum earnable OSMO for your account from the quadratic fairdrop, refer to this webpage. Also, it should be noted that the airdrop is only proposed to set the initial genesis distribution. Detailed information on the token economics of Osmosis will be released at a later date, but it should be noted that Osmosis plans to be highly inflationary in its early stages and the vast majority of OSMO total supply will be allocated as reward for future network contributors (e.g. liquidity incentives).Timeline Osmosis is currently undergoing rapid development. The community will launch an MVP product as soon as safely possible, after following thorough security procedures. After launch, OSMO governance participants will be able to use on-chain governance to refine and execute on the long-term vision of Osmosis. Please stay tuned for information in the coming weeks about testnets and new developments. You can follow the development progress on Github here: https://github.com/osmosis-labs/osmosisStay in Touch To keep up with updates on the project and timelines, please follow us on Twitter and on this Medium. Also, we would love to meet you over on our community Discord here. Please drop by and say hi! Vision for Osmosis was originally published in Osmosis on Medium, where people are continuing the conversation by highlighting and responding to this story.




  OSMO NEWS


Despite the Crypto Market Dip, Weekly Gains Show OSMO, ATOM, FTM, and a ...

    On January 5, digital currency markets shed a great deal of value as bitcoin dropped below the $44K handle during the late afternoon (EST) trading sessions on Wednesday. Nearly every coin has shed 24-hour value, but a slew of crypto assets have seen double-digit gains and have managed to stave off the crypto economy downturn. This Week's Double-Digit Crypto Gainers At the time of writing, the crypto economy is down more than 7% to a low of $2.16 trillion on Thursday, January 6, 2022. The price of bitcoin (BTC) has lost 7% this week as well as it dropped below the $44K zone from the $46K region where it sat 24 hours prior. BTC's current 24-hour range is between $46,901 per unit and a low of $42,466 per unit. Other top crypto assets have shed significant value as well as ethereum (ETH) is down more than 10%, binance coin (BNB) has lost over 8%, and solana (SOL) has dipped more than 11% in USD value. Weekly metrics were recorded on January 6, 2022, at 9:45 a.m. (EST). Despite the major drawdown across most of the 12,000 crypto assets in existence, a number of digital coins have seen double-digit seven-day gains against the U.S. dollar. For instance, osmosis (OSMO) is up 41.3% this week, and cosmos (ATOM) has jumped 34.9%. Those two tokens are followed by fantom (FTM) (+32.5%), ravencoin (RVN) (+27.7%), and internet computer (ICP) (+25.9%). MIOTA, SPELL, SUSHI, KDA See Double-Digit Losses This Week Harmony (ONE) jumped 25.7% this past week, chainlink (LINK) is up 23.5%, and yea... read More



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