Investing In Osmosis (OSMO) – Everything You Need to Know

Osmosis (OSMO) operates as a high-performance blockchain ecosystem. The network includes the largest interchain DEX (decentralized exchange), a smart contract programmable blockchain, and DeFi functionalities. Notably, Osmosis operates in the fourth-generation Cosmos blockchain ecosystem, where it has become a popular project.

Osmosis has a growing community of users. According to company documentation, the network averages around $22M in 24hr trading volume. The DEX has $203.7M in total value locked with +1000 interchain transfers. As such, the network operates as a valuable tool for traders, investors, NFT collectors, arbitrageurs, DeFi users, and Dapp providers.

What Problems Does Osmosis Attempt to Fix?

The Osmosis network was built to reduce the number of issues that face the market at this time. One of the main concerns for the development team was a lack of transparency. The Osmosis ecosystem is about shedding light on assets and liquidity. Users can leverage the network's tools to analyze assets via charts and real-time data streams.

Lack of Interoperability

Another major issue that has held back blockchain adoption is a lack of integration. In the industry's early days, it was about creating a new blockchain that was better than the last. Today, developers understand that some networks are ideal for certain tasks. Osmosis enables the development of interchain native Dapps and cross-chain transactions.

Lack of Liquidity

The same issues that affect innovation such as lack of interoperability lead to a lack of liquidity. When networks can't communicate or exchange value, they all take from the pie. Osmosis enables users to leverage the liquidity of popular networks like Ethereum and combine it with more flexible protocols to create cross-chain decentralized applications

Benefits of Osmosis

Some unique benefits make Osmosis an interesting project to watch. The protocol was designed to be very easy to use. The Osmosis Swap feature enables you to trade digital assets across networks with no previous experience. Additionally, there are a lot of helpful features such as a development kit that improves programmability.

Growing Ecosystem

The Osmosis ecosystem has seen substantial growth since its launch. The network now has +66 different Dapps in operation and a host of new features. Options such as the developer tool kit and front-end library have helped to drive growth by improving programmability.

How Does Osmosis Work?

Osmosis leverages the Cosmos SDK and Inter-Blockchain Communication Protocol to provide interoperability to the market. The network was built on the Cosmos blockchain. It also provides a native chain to developers called the Osmosis blockchain

Osmosis Bridge

The Osmosis bridge feature provides access to a permissionless gateway that supports cross-chain applications. This protocol enables developers to leverage the best aspects of one network and the security of another. It also empowers developers to combine liquidity across blockchains to improve the user experience.

Wallet

The Osmosis ecosystem has a lot of wallet options. These wallets provide non-custodial and mobile security for your crypto. There are options such as the Leap wallet that is available for desktop and mobile applications. There are also some very well-known options such as the Trust Wallet.

NFTs

Osmosis supports the creation, management, and issuance of NFTs. Developers and influencers can easily create tokens using the network's programmable interface. Additionally, some commemorative and rare NFTs are slated for release in 2023 by the development team. These NFTs will live on the Cosmos blockchain and feature unique animations.

Osmosis Swap

The Osmosis Swap feature streamlines the DEX experience via a simplistic exchange window. You can scroll through the supported tokens and select the two you want to exchange and the amount. You don’t need to fill out a registration form, but you will need to connect your network wallet to begin trading.

Superfluid Staking

Osmosis brings superfluid staking to the market. This liquidity staking protocol leverages bond LP shares to improve security and ROIs. This structure has the advantage of enabling users to also receive pool rewards while the underlying OSMO is staked.

Pools

Anyone can create a liquidity pool on Osmosis. They simply need to provide the corresponding value in tokens and OSMO to launch the staking pool. This feature makes it easy for startups to secure funding and was first pioneered on Uniswap with much success.

Token – OSMO

The OSMO token serves multiple roles in the ecosystem. It's used to pay for network fees such as smart contract executions and transactions. Additionally, it can be staked to secure passive rewards using the Superfluid staking system. It also serves a vital role in launching pools where it serves as the base asset. There are 1 billion OSMO slated for release.

Governance

Users can decide the direction of the Osmosis network via the governance system. Anyone can stake their OSMO to put in proposals and vote on network upgrades or changes. These alterations can include items such as new fee structures or assets. Community governance systems are becoming standard in the DeFI market because they enable the community to remain the driving force behind changes.

History

Osmosis's developers, Sunny Aggarwal, Josh Lee, and Dev Ojha, announced plans to create a network in October 2020. In June of the following year, the network officially launched. In June 2022, the swap feature was hacked and $5 million in crypto was stolen.

Luckily, the developers halted the attack 12 minutes after the hack took place. To accomplish this task, the developers paused the entire network briefly. In total $5 million of the exchange’s $212.77 million in TVL was stolen. The speed at which the developers and network nodes worked together has received praise as it prevented even greater losses.

How to Buy Osmosis (OSMO)

Currently, Osmosis (OSMO) is available for purchase on the following exchanges.

Coinbase – A publicly traded exchange listed on the NASDAQ. Coinbase accepts residents from 100+ countries, including Australia, Canada, France, Germany, Netherlands, Singapore, the United Kingdom, and the United States (excluding Hawaii).

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry and offers trading access to over 190 countries, including Australia, Canada, Europe, and the United States (excluding Maine, New York, and Washington state).

Kraken Disclaimer: Not investment advice. Crypto trading involves risk of loss. Payward European Solutions Limited t/a Kraken is authorised by the Central Bank of Ireland.

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  Restrictions may apply, depending on location.

Osmosis (OSMO) – A Proven Option with a Strong Community

The Osmosis ecosystem brings a lot of benefits to the Cosmos ecosystem and the entire blockchain industry. The network's cross-chain capabilities are sure to improve functionality. Additionally, the platform has proven that its community is actively protecting the network from attackers. For these reasons and many more, Osmosis continues to see adoption. To learn more, make sure to visit our token guide.