Osmosis is an app-centric chain and DEX build in the Cosmos ecosystem. The protocol is a trading platform and automated market maker (AMM) protocol that allows developers to build customized AMMs with sovereign liquidity pools.
Proof of Stake
$OSMO Governance: Osmosis token holders can vote on proposals that determine the direction of the network and protocol. Transaction Fees: Osmosis token is used to pay transaction fees on the Osmosis network. Security: Osmosis token holders can participate in staking and earn rewards by securing the network. $LP Tokens Liquidity Provision: Pool tokens represent liquidity providers' share in a liquidity pool, allowing them to earn trading fees and swap fees. Yield Farming: Holders of pool tokens can earn additional rewards through yield farming incentives offered by the Osmosis protocol.
Governance: Holders of OSMO can participate in protocol governance decisions and have a say in the direction of the project. Short-term inflation rewards: Users who provide liquidity to Osmosis pools can earn OSMO tokens as a reward, incentivizing them to stay engaged with the platform. Exposure to Cosmos ecosystem: Holding OSMO allows for potential airdrops and staking rewards from other chains in the Cosmos ecosystem, providing additional value to the token.
The value created by Osmosis is its decentralized exchange and automated market maker protocol, providing a flexible trading experience for specific projects with customized AMM pools and cross-chain asset trading for enhanced transparency and decentralization in DeFi.
Value accrual to token: Osmosis protocol captures value through token holders staking and providing liquidity, earning yields in return. This incentivizes users to lock up tokens, reducing supply and increasing demand, which can potentially increase the token's value. Value accrual to protocol: Osmosis also captures value through its protocol treasury, which receives a portion of transaction fees. The treasury can then use these funds for various purposes, such as funding development, marketing, or community initiatives. Additionally, stakers have control over the allocation of community pool funds, giving them a say in how the protocol treasury is used. Osmosis also offers stakers airdrops
The business model for the OSMO protocol/chain: Revenue comes from: Transaction fees from the network, DEX trades, and liquidity provision/withdrawal actions. Revenue is denominated in: OSMO tokens. Revenue goes to: OSMO stakers who receive rewards from transaction fees collected by validators and airdrops from different Cosmos chains. Validators also receive a percentage of transaction fees. Liquidity providers
|Problems & Solutions
Problem: Liquidity issues and high fees often plague decentralized exchanges (DEXs), especially in executing cross-chain transactions. Solution: Osmosis provides an app-centric chain and DEX powered by Cosmos and the IBC protocol, enabling seamless cross-chain transactions. Its customizable AMM supports developers in creating unique liquidity pools, ensuring ample liquidity for trading. With Osmosis, users can easily exchange tokens between blockchain networks with reduced fees and slippage.
Uniswap - A decentralized exchange (DEX) on the Ethereum blockchain that allows users to trade ERC20 tokens without intermediaries. PancakeSwap - A decentralized exchange (DEX) built on the Binance Smart Chain (BSC) that allows users to trade BEP20 tokens without intermediaries. SushiSwap - A decentralized exchange (DEX) on the Ethereum blockchain that offers yield farming and other liquidity incentives to users who provide liquidity to the platform.
... coming soon
$OSMO Token Generation Event
The launch of superfluid staking
90% of FDV reached
At this moment