Osmosis Lights Up the Market with 80% Run in Last 14 Days - The Defiant - Deepstash
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Summary

Osmosis, a decentralized exchange, has made its way to the front page of CoinGecko as its token has repeatedly rallied in the new year.

Price isn’t the only factor looking up for the decentralized exchange (DEX) — Osmosis notched an all-time high of $112M in volume on Jan. 4, according to a dashboard provided by the project. 

Cosmos is a network of independent blockchains and its token ATOM, has rocketed 74% in the last 14 days.  

Map of Zones , which tracks different Cosmos projects, each of which is its own blockchain, shows Osmosis as the leader in terms of IBC protocol transfers.  

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A IBC transfer happens when a user moves an asset from one Cosmos chain to another. This is done by effectively locking an asset on one chain and minting a mirrored version of it on another IBC-enabled chain.

Map of Zones shows Osmosis with 1.39M IBC transfers in the last 30 days, while the number two ranking project, the Cosmos chain itself, has under 486,000 over that same time period. 

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Bonding Curve

Osmosis uses an automated market maker (AMM ) model, which means users provide the liquidity necessary for trading.

Curve employs a bonding curve designed to take advantage of its homogenous asset pools like DAI-USDT-USDC, all of which are pegged to the US dollar. 

In addition to custom bonding curves, Osmosis’ generally exhibits a bent towards customization of pools. AMM pools should function more like DAOs , meaning those providing liquidity should be able to customize the bonding curves, as well as the fee structure through governance.

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Cosmos Ecosystem

The exchange has additional feautres coming down the pipe, not least of which is the integration of both ETH and BTC into the Cosmos ecosystem. ETH will come by way of something called the Gravity Bridge , which will ship within a couple weeks, according to Aggarwal.

Aggarwal is also excited about protocols that the Osmosis Foundation and Confio, which develops CosmWasm , a smart contracting platform for the Cosmos ecosystem, are collaborating to develop. The teams will build the protocols on top of Osmosis, but Aggarwal declined to state their nature.

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CURATED BY

decebaldobrica

#engineering, #machinelearning and #crypto

CURATOR'S NOTE

Osmosis debut as a DEX and it's differentials

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