Have you heard of Osmosis (OSMO)? It is one of the leading DEX exchanges in the Cosmos ecosystem, allowing users to trade a variety of tokens quickly and securely.
So how does Osmosis work and why is it chosen by many people? Let’s explore the answer with AZCoin in the following article!
What is Osmosis (OSMO)?
Osmosis (OSMO) is a decentralized exchange protocol (DEX) that operates on the Cosmos network, a blockchain ecosystem that allows different blockchains to communicate and interact with each other. Osmosis is designed to provide a decentralized token exchange platform, allowing users to swap crypto assets easily and efficiently.
Osmosis project team
The development team of Osmosis consists of many leading experts in the blockchain field, especially in the Cosmos ecosystem. The key members of the development team are:
- Sunny Aggarwal – Co-Founder: Sunny is also the co-founder of Sikka, a company specializing in blockchain infrastructure, which aims to promote protocols and networks for the decentralized Internet. Sikka currently runs five leading validators on the Cosmos Hub, Kava and Akash networks.
- Josh Lee – Co-Founder: Josh is also the co-founder and CEO of Chainapsis, the Keplr wallet development project, a multi-purpose wallet solution for the Cosmos ecosystem Cosmos .
Difference between Osmosis and other AMM
The Osmosis project aims to optimize the expansion of Automated Market Makers (AMMs) in the Cosmos ecosystem, solving some of the current problems in this network.
Osmosis stands out with its differences from other AMM:
- Optimize transaction costs : Osmosis adjusts transaction fees to attract interest from large investors and financial institutions.
- Decentralized pool management : Both the pool creator and the community have the authority to manage pool liquidity.
- Pool creation model similar to Curve Finance : Osmosis uses a Swap curve to set up liquidity pools, similar to Curve Finance s method.
- Impermanent Loss Mitigation : The project provides the ability to create sub-liquidity pools based on the value ratio of tokens, which reduces the risk of Impermanent Loss in the ecosystem.
Thanks to these improvements, Osmosis aims to increase efficiency and reduce risk in transactions and provide liquidity within the Cosmos network.
Key features of Osmosis
To encourage the provision of liquidity, the Osmosis project (OSMO) has developed many outstanding features beyond what traditional AMMs offer, including:
- Asset Swaps and Provides Liquidity : The project allows asset swaps between accounts and provides liquidity for many different trading pairs.
- Inter Blockchain Communication Protocol (IBC) : Osmosis uses IBC technology to allow investors to deposit tokens from different blockchains, creating a cross-chain bridge similar to platforms like Ethereum and Binance Smart Chain.
- Airdrop Program : To encourage participation, the project conducts airdrops based on four main tasks: providing liquidity to pools, implementing swaps, staking OSMO on Keplr Wallet and voting on project governance proposals.
- Asset Management : This feature allows investors to manage and control their assets directly and efficiently.
Important information about OSMO Token
OSMO tokens are an important part of the Osmosis ecosystem, playing a role in providing liquidity, governance and user incentives.
OSMO token key metrics
- Token Name: Osmosis.
- Ticker: OSMO.
- Blockchain: Cosmos.
- Token Standard: Updating…
- Contract: Updating…
- Token Type: Utility & Governance.
- Total Supply: 1,000,000,000 OSMO.
- Initial Supply: 100,000,000 OSMO.
OSMO token allocation
The total 1.000.000.000 OSMO will be fully distributed as follows:
- Liquidity Reward Mining: 40.5%
- Developer Vesting: 22.5%.
- Staking Reward: 22.5%
- Community Pool: 4.5%
- Strategic Reserve: 5%
- Airdrop: 5%
OSMO token use case
OSMO tokens will be applied in the following cases:
- Provide liquidity in Osmosis Pool to receive rewards.
- Staking into Osmosis to earn rewards.
- Propose and vote on changes to the system.
Where to buy OSMO tokens?
You can buy OSMO tokens on some of the the best cryptocurrency exchanges such as Binance, Coinbase, and Kraken. In addition, OSMO is also available on decentralized platforms such as Uniswap and Sushiswap, where you can make direct trades in other cryptocurrencies.
In which wallet do you store OSMO tokens?
You can store OSMO tokens in wallets that support the Cosmos blockchain, such as Keplr Wallet and Cosmostation Wallet. Hardware wallets like Ledger Nano S and Ledger Nano X also support OSMO and provide a higher level of security for your assets.
Similar projects to Osmosis
AMM DEX Liquidity plays an important role in promoting the development of DeFi ecosystems. Therefore, most ecosystems own many different AMM DEXs. Here are some typical AMM DEXs in prominent ecosystems such as
- Ethereum: Uniswap, Sushiswap, Curve,…
- Binance Smart Chain: Pancakeswap, Bakeryswap,…
- Solana: Raydium, Serumswap,…
- Polygon: Quickswap,…
- Avalanche: Pangolin,…
Conclusion
The above is the detailed information about the Osmosis (OSMO) project that AZcoin has just introduced to you. Hope this article has given you an overview and can make the right decisions before investing in this project!
I am Louis Dang, living in Ottawa, Canada. I am currently working as a trader for AZCoin company, with 7 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
