The State of Osmosis-October 7, 2022
As the markets continue their turbulent year, liquidity seems to find the bright spots in the market. Whether it is high yielding Liquidity Pools, Liquid Staking Derivatives or newly listed tokens, Osmosis offers them all.
This week, let’s examine the growth occurring within the newly listed Axelar Network Token, as well as the Liquidity Pool, as their stories have been closely intertwined since enabling the canonical bridge.
Last but not least, its been a rocky week for the Cosmos ecosystem. How has this affected the amount of liquidity coming into Osmosis?
Along came a Bridge
Axelar burst onto the Cosmos during one of the most turbulent times for the ecosystem. It would be fair to say since the Osmosis Community voted to have them be the canonical bridge, the majority of liquidity growth Osmosis has experienced has been the result of the ability to bridge EVM compatible liquidity.
Osmosis performed $469,930,000 in IBC volume over a 30 day period, of those $469,930,000, Axelar was responsible for 45% of the total volume going through Osmosis, why is this?
Well let’s take a look at the top sources of liquidity currently in place.
Here we have:
- USDC $18.6M TVL
- Wrapped Ethereum $7.2M TVL
- Wrapped Bitcoin $6.3M TVL
- DAI $3M TVL
Axelar provides Osmosis with a significant portion of its liquidity and volume. This brings me to the recent launch of the AXL token on Osmosis, both a the token and a liquidity pool have been enabled.
Let’s take a look at the growth to date as it has been over a week.
- Total AXL liquidity has grown over 24% in the last 7 days
- AXL is the 13th Largest token on Osmosis
What about the liquidity Pool? This where it the majority of liquidity has flowed to. Pool #812 was launched on September 27 and since then has experienced tremendous growth.
- Since Inception there has been a 34.78% growth in TVL in 7 days
- It is now the 12th largest pool on Osmosis
- The Pool yields 300% APR
- It is also the 4th largest pool by volume
What’s more impressive here is the volume has been able to generate a significant amount of fees in a short period of time.
As a comparison, Pool #803 StATOM / ATOM, which holds 8.7M in TVL, generated around $7,000.00 in fees since inception last month. Why does this matter?
Osmosis is generating revenue for LPers by offering tokens traders want, providing sufficient liquidity and incentivization, it will be interesting to check back on this pool as it reaches saturation.
EVMOS Liquidity Continues
A curious observation since the launch of the EVMOS token has been the amount of liquidity constantly coming to Osmosis.
It is the fastest growing token by liquidity, let’s take a look at the numbers.
- 90 Days 487.61%
- 30 Days 49.15%
- 7 Days 11.76%
Meanwhile the Liquidity Pool offers a yield of 78% while staking provides a yield of 200%, why would traders be willing to bring EVMOS to Osmosis are they looking to simply swap their tokens?
GAMM numbers do not point to an unbonding or liquidity drop to stake. As volatile as EVMOS has been since its inception, one could theorize the “stability” of OSMO shields EVMOS holders while being paid with a significant APR in return.
Osmosis serves as the go to of the Cosmos Ecosystem, providing the deepest liquidity, the largest selection of tokens, it is where most projects launch their tokens and the easiest way to earn some yield. This week and the numbers from both EVMOS and AXL show just how efficient liquidity can be at finding where to navigate in this tumultuous market.
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