• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M
Revolution in DeFi: Osmosis DEX and new horizons in the Cosmos blockchain

Revolution in DeFi: Osmosis DEX and new horizons in the Cosmos blockchain

user avatar

by Alexandra Smirnova

2 years ago


Osmosis represents an innovative exchange embedded in the Cosmos ecosystem. This platform stands out in the market due to its scalability and the use of unique approaches in DeFi. The Osmosis platform, which operates within Cosmos, uses its own OSMO cryptocurrency.

Revolution in DeFi: Osmosis DEX and New Horizons in the Cosmos Blockchain - news

Basics of Osmosis

Osmosis is a decentralized exchange (DEX) and automated market maker (AMM), based on the Cosmos SDK. It's a set of tools for creating blockchains intended for specific applications.

Cosmos facilitates the development of unique and scalable networks.

What sets Osmosis apart from other DEXs is the ability for users to customize their liquidity pools and create individual AMMs. This provides liquidity providers with more control over their DeFi operations, as they can set their own rules.

Osmosis development is led by Osmosis Labs. The platform is managed by decentralized validators who vote on updates and modifications. In the summer of 2021, the project attracted $21 million in funding from investors such as Paradigm Ventures and Nascent.

Osmosis DEX utilizes the features of the Cosmos ecosystem to merge blockchains and transfer tokens and data through the Cosmos Inter-Blockchain Communication Protocol (IBC).

How Osmosis DEX Works

While decentralized exchanges have significantly improved capabilities in the DeFi sphere, well-known DEXs like Curve, PancakeSwap, and Uniswap face certain limitations that Osmosis aims to overcome. These popular platforms are limited to trading tokens native to their own blockchains. In contrast, Osmosis DEX is a multi-layer blockchain platform that allows users to participate in staking various tokens located on other blockchains. Thanks to its AMM integrated with numerous Tendermint blockchains, Osmosis can support cross-chain transactions for its users.

Unique features of Osmosis include:

Feature Description
Sovereignty and Incentive System Allows liquidity providers, DAO members, and other community participants to receive various incentives. Liquidity providers have ownership rights to pools and can set market parameters.
Multi-Chain Currently, Osmosis supports only IBC, but plans to expand its capabilities.
Super Liquid Staking The OSMO token can be used simultaneously for staking and in the liquidity pool, increasing rewards for users.
Thirdening A mechanism similar to halving, which creates a scarcity of OSMO token supply and increases their value.

 

Using the OSMO Token

The primary token of the platform, OSMO, is used to pay fees and receive rewards for liquidity mining. OSMO holders have the opportunity to influence the strategic development of the project and participate in update voting.

The current circulating supply of OSMO is 492,590,761, with a maximum of 1 billion. The initial offering of 100 million tokens was distributed between the strategic reserve and Fairdrop recipients as follows:

  • Liquidity provider incentives - 45%
  • Staking rewards - 25%
  • Developers - 25%
  • Community pool - 5%

The thirdening mechanism helps combat inflation by reducing the OSMO supply by a third each year.

Using Osmosis involves certain risks, and users should be aware of potential issues. Violations by validators can lead to a slashing process, where part of their OSMO tokens is seized. However, with responsible use, Osmosis can become a reliable partner for decentralized investments.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other articles

MoonTap: Tap-to-Earn game in Telegram powered by TON blockchain

chest

MoonTap is a Telegram-based game that combines Tap-to-Earn mechanics with TON blockchain tokenomics. The project offers simple user engagement, NFT boosters, referral rewards, and strong potential for scaling within the Web3 ecosystem.

user avatarAlexandra Smirnova

Gameplay Galaxy: A Gaming Platform for Earning and Entertainment

chest

In the video game industry, practical benefits are increasingly valued. Gameplay Galaxy creates an ecosystem where gaming skills generate real income, bringing together gamers from different genres for competitions and monetizing their skills.

user avatarMax Nevskyi

How Fren Pet Combines NFTs, DeFi, and Gameplay on the Base Blockchain

chest

Explore Fren Pet, a Web3 pet game with NFT mechanics, token rewards, battles, and economic strategy built on the Base blockchain. Learn how it works and what’s next.

user avatarElena Ryabokon

CafeCosmos: Your future space restaurant

chest

CafeCosmos is an innovative project where the gameplay of a restaurant simulator is combined with blockchain technologies. Players become owners of space establishments, building business processes and making decisions that affect real income.

user avatarMax Nevskyi

How Web3 Salon Helps Japanese Startups Go Global in the Web3 Era

chest

Explore Web3 Salon — Japan’s Web3 startup hub offering grants, mentorship, and global partnerships. Structure, programs, challenges, and impact on the ecosystem.

user avatarElena Ryabokon

Flipper: How a Web3 Telegram Game Evolves into a Full AI DEX Platform

chest

Explore Flipper — a Web3 platform that starts as a Telegram game and evolves into an AI-powered DEX. Learn about its mechanics, token economy, digital assets, and roadmap.

user avatarElena Ryabokon

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.