Osmosis is a cross-chain automated market maker (AMM) protocol and a Layer 1 Proof-of-Stake (PoS) blockchain built with the Cosmos SDK. The protocol enables developers to design, build, and deploy their own customized AMMs through its on-chain governance system and many modules.
OSMO is the protocol's native governance and utility token.
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What Is Osmosis
Osmosis is an advanced cross-chain Automated Market Maker (AMM) protocol designed with the Cosmos SDK that allows developers to design, build, and customize their own AMMs.
AMMs have become an integral part of blockchain’s use case since Vitalik Buterin introduced them in 2017. Osmosis is the first AMM Decentralized Exchange (DEX) for IBC connected coins based on Cosmos, an "Internet of Blockchains" network where developers can build interoperable DApps.
Osmosis specializes in the InterchainDeFi movement (Tendermint-based blockchains) in the Cosmos ecosystem, accounting for roughly 40% of the total inter-blockchain transfers on Cosmos. Osmosis is inspired by Balancer, Uniswap, and Curve Finance, and IBC compatible blockchains (such as Cosmos, Regen, Akash, etc.) can be seamlessly swapped on Osmosis, with fees generally under $1.00.
OSMO is the native utility and governance token for Osmosis that facilitates liquidity mining reward allocation and the base network swap fee. Superfluid Staking, the unique feature of Osmosis, makes it possible for OSMO to be used simultaneously for staking and liquidity, letting liquidity providers or stakers earn rewards from providing liquidity and staking.
OSMO can be used to vote on protocol upgrades, allocate liquidity mining rewards for specific liquidity pools, and set the base network swap fee.
The OSMO token was released with an initial supply of 100 million tokens. The highest price paid for OSMO since it was launched or listed was $11.25 on Mar 04, 2022.
Osmosis Founders
Osmosis was founded by Osmosis Labs founders Sunny Aggarwal and Josh Lee in 2021.
In 2021 they successfully raised 21 million to improve the network.
Before finding Osmosis, Sunny Aggarwal worked as a Research Scientist at Tendermint in 2017. He is also the founder of Sikka; a blockchain infrastructure company focused on building and operating secure infrastructure for blockchains and other decentralized networks.
Josh Lee was Sunny's colleague at Tendermint.
How Does Osmosis Work
Osmosis was created to support and improve the idea of an interoperable cross-chain trading experience. It connects to the entire Cosmos ecosystem with an inbuilt IBC, an open‐source protocol for relaying messages and connecting independent blockchains to one another. Osmosis plans to branch out to non-IBC enabled chains, such as Ethereum-based ERC20s (via the Althea gravity bridge), Bitcoin-like chains, and alternative smart contracting platforms.
Osmosis uses the PoS consensus mechanism and is secured by validators who produce blocks for the blockchain and earn block rewards in exchange.
The Osmosis decentralized exchange's key features are:
- Self-governing liquidity pools: Liquidity pools (LPs) on Osmosis are entirely customizable via governance.
- Superfluid staking: OSMO can be used for staking and liquidity simultaneously, maximizing rewards so that a liquidity provider or staker in Osmosis will earn rewards from providing liquidity and staking.
- MEV resistance: Osmosis offers solutions to help limit MEV (Maximal Extractable Value).
Some notable examples of Cosmos-based blockchains are ThorChain, Terra, Binance Chain, Akash, Kava, Secret Network, Crypto.com, SifChain, and Osmosis.
Where to Buy Osmosis
To purchase Osmosis (OSMO) on most cryptocurrency exchanges, you must first buy Bitcoin (BTC) or Ethereum (ETH) to trade with.
Osmosis is trading on several cryptocurrency exchanges, such as Bitget, Bitrue, Bkex, Coinbetter, CoinEx, etc. Currently, the most popular exchange for OSMO is Bitget.
Go and check out how to buy Osmosis for more information on the coin.
