[{"category":{"name":"BitScreener Exclusive","exported_url":"bitscreener-exclusive"},"id":"0de59258-babd-4014-b930-52b6e342dafa","updated_at":"2022-07-27T11:56:00+00:00","account":{"firstName":"Akash","lastName":"Kashyap"},"description":"AMM-based Platform The Osmosis crypto ecosystem, which appeals to both crypto traders and developers, provides a variety of use cases for its native Osmosis token as well as interoperable, modular tools for developers. Let’s take a deep dive into OSMO!","sapo":"AMM-based Platform The Osmosis crypto ecosystem, which appeals to both crypto traders and developers, provides a variety of use cases for its native Osmosis token as well as interoperable, modular tools for developers. Let’s take a deep dive into OSMO!","title":"Osmosis (OSMO): Cross-chain DeFi And AMM-based Platform","content":"

Overview of Osmosis

Osmosis is a decentralized peer-to-peer blockchain that people can use to create liquidity and trade IBC-enabled tokens. The Osmosis blockchain is made up of free, public, and open-source software.

Your use of Osmosis involves various risks, including, but not limited, to losses while digital assets are being supplied to Osmosis pools and losses due to the fluctuation of prices of tokens in a trading pair or liquidity pool, including Impermanence Loss.

History of Osmosis

Osmosis was introduced in October 2020 and launched on June 19, 2021, by Osmosis Labs.

Its core developers include Sunny Aggarwal, Josh Lee, and Dev Ojha.

The initial supply of OSMO tokens was 100 million, of which half was sent to ATOM stakers and the other half was controlled by Strategic Reserve - an internal treasury.

During the token sale in October 2021, the OSMO project earned $21 million.

The OSMO token reached its all time high of $11.25 on March 4th, 2022.

About OSMO token

Osmosis (OSMO) is the governance token of the Osmosis protocol.

OSMO holders are allowed to participate in on-chain activities, such as distributing liquidity mining rewards or deciding the base network swap fee.

Osmosis also plays a role in staking tokens verifying transactions and validating new blocks.

The OSMO token will only be distributed to network participants who contribute resources to the Osmosis network's success, such as liquidity providers, developers, stakeholders, and others.

Features of Osmosis

The most special feature of Osmosis is its versatility. Some functions can be adjusted through the governance token of Osmosis:

Change transaction fee, Liquidity withdrawal fee.
Manage the Pool (pool creator or community).
Add or remove assets that are supported in AMM (Auto Market Maker).
Create a Pool with a different ratio of tokens in the Pool to reduce the risk of Impermanent Loss.

Osmosis will combine the power of Uniswap, Balancer and Curve while being able to flexibly customize the functions in their Pool. This makes Osmosis easy to scale without the need to migrate liquidity like Uniswap v2 to Uniswap v3.

How Osmosis works

Osmosis was designed with IBC (Inter-Blockchain Communication) in mind, allowing it to connect to the entire Cosmos chain ecosystem.

Osmosis can customize the curve algorithm. Osmosis enables market participants to find an optimal bonding curve equilibrium in various use-case liquidity pools.

Osmosis enables users to provide liquidity to pools with varying ratios in a flexible manner. As a result, more innovative AMM strategies are appropriate for rapidly changing markets such as DeFi.

However, because the capitalization of tokens in the Cosmos ecosystem is still low when compared to Ethereum, you can only add two tokens to pools like Uniswap at this time. As a result, adding more tokens to liquidity pools poses a significant risk to users.

Is OSMO a good investment?

The Osmosis team is concentrating on AMM as serviced infrastructure, which refers to the ability to change parameters in AMMs as well as cross-chain DeFi integration, which will attract more cash flow and users in the future.

Osmosis is one of the Cosmos ecosystem's first AMM projects, giving it an advantage over other competitors in the same ecosystem.

This is a solid foundation that has the potential to propel the native token OSMO to new heights.

Explore all the trending topics and hottest news in the crypto market with our Blogchain.

Meanwhile, practice trading, play virtual money, and earn real tokens with CryptoSim - Virtual Trading Game.

","tags":[{"tag":{"tag":"DeFi","id_tag":"defi"}}],"image":{"fileName":"osmosis-osmo-deep-dive.png"}}]

Osmosis (OSMO): Cross-chain DeFi And AMM-based Platform

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