Exchange Osmosis (OSMO)

Osmosis is a cross-chain decentralized exchange (DEX) that uses Proof-of-Stake (PoS) to secure its network. The IBC protocol allows for the efficient trading of assets between different blockchains. The concentrated liquidity will allow for high-frequency trading (HFT) to take place on the network. The threshold encryption will provide security for traders and ensure that their privacy is protected.

Osmosis is trying to address the challenge of creating an infrastructure by providing users with an option to define the bonding curve value function and reuse the rest of the infrastructure using Osmosis' products. This will make it easier for users to create and manage their own blockchain applications.

Osmosis DEX is a project made for the Cosmos network, an ecosystem of the sovereign, interoperable blockchains trustlessly connected over IBC (The Inter-Blockchain Communication protocol). As an appchain Osmosis has greater control over the full blockchain stack with the fine-grained control enabling, for example, the development of Superfluid Staking, an improvement to the Proof-of-Stake security. It allows the holders of underlying OSMO in an LP position to add the chain security and earn staking rewards for doing so. As the chain is also customizable, it allows for the development of memepool shielded with threshold encryption that reduces harmful MEV on Osmosis. 

The Osmosis network was launched by the members of two core Cosmos teams: Sunny Aggarwal and Dev Ojha from Sikka Validator and Tendermint, and Josh Lee and Tony Yun from Keplr, the Interchain wallet. Paradigm, a digital asset investment firm with stakes in countless other blockchains and protocols, also participated in sponsoring the project. 

Osmosis is designed to be accessible and user-friendly. Its focus on security and privacy makes it a popular choice for traders and investors. Osmosis offers non-IBC assets bridged from Ethereum to Polkadot. The project was originally based on Balancer-style pools but later moved to a more sustainable concentrated liquidity model that provides better trading and liquidity provision experience. 

Osmosis uses a unique blockchain-based voting system to create a more efficient and fairer network for app developers. The network allows app developers to build and distribute their applications using a simple and secure voting system, which allows users to decide which applications they want to use.

The Osmosis network is built on the Ethereum blockchain and uses a consensus mechanism called threshold encryption. This mechanism allows the network to run smoothly even when there are a large number of app developers participating.

Users participate in the network by running a node. Nodes verify and execute transactions on the network, while also keeping track of the state of the mempool and appchain. This ensures that transactions are processed quickly and efficiently.

Compared to the other AMM money market protocols, Osmosis stands out thanks to its three main features. First of all, it has customizable liquidity pools and allows to provide liquidity pools with several tokens and unequal ratios. The liquidity pools on Osmosis are used to calculate fractional ownership of a liquidity pool along with the right to participate in strategic decision-making. It incentivizes the long-term liquidity provision and prevents possible vampire attacks from the other protocols. 

The Osmosis network utilizes a Proof-of-Stake consensus mechanism with its own validators set. 

OSMO coin is the native token of the Osmosis DEX. It is used to pay for trades on the platform and to reward users for their contributions. The OSMO token can be used in a variety of ways on the Osmosis DEX. These include paying for trades, rewarding users for their contributions, and powering the platform’s decentralized nature.

OSMO is also a governance token, providing holders with the right to vote for the proposals on the network. The coin has a total supply of 1 billion tokens, with 100 million being issued during the network genesis. Those assets were split between airdrop recipients and strategic reserves. Tokens are released at the end of each day’s epoch and follow thundering schedule, meaning that the issuance of the coins is cut by a third part each year. 300 million tokens were realized during the first year since the launch. In the next year, the plan is to release 300 million OSMO and 200 million coins in the second year. 

Average Fees on the Osmosis Network

There are different types of fees on the network. First of all, users pay transaction fees whenever they place a transaction on the chain. The fee amount is determined by the computation and storage costs of the transaction. The proposer of the block in which the transaction is included sets the minimum fee. Validators can also choose which assets to accept for fees. The Osmosis network in general charges a gas fee of 0.00005 ETH for each Gas used.

Users also have to pay swap fees that are paid in the form of the input asset. The swap fee is specified by the pool creators. Also, users have to pay a small fee for exiting the pool. The amount is also set by the pool creator. 

Overall, the average fees associated with using the Osmosis network are quite low. This makes the network an excellent choice for transactions of small to medium size.

OSMO Wallets 

Osmosis offers users to hold their tokens in the native OSMO wallet. The OSMO wallet is free and available for both Android and iOS devices.

The coin is also supported by most of the popular crypto wallets, including MetaMask, Coinbase, Ledger, TokenPocket, Free Wallet, Assure wallet, Match Wallet, Trust Wallet, Argent Wallet, Ambire Wallet, Binance, Coinhub, etc.