Cosmos Based DeFi - Part 2: Osmosis

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In my last post, I looked at Gravity Dex, and likened it to being the "Uniswap" style DEX for Cosmos, and Cosmos pegged tokens. Today, I'll look at Osmosis, a project that is still under development and possibly launching towards the end of Q2 or in Q3. Osmosis looks more like Balancer in its structure, with flexible parameters for pool creation including multi-coin pools, fee customization and so on.

Image source: Medium post

Around the time that ATOM upgraded its protocol in February, news of a new project in the works called Osmosis came out. An airdrop of a new token called OSMO will occur, with wallets that had ATOM's staked at the time. The airdrop amounts are small, but the tokens initial price and early inflation schedule are unknown at this stage.

What we have had from Osmosis is a sneak peak screenshots.

osmosis preview.png

This image was posted by Phillip M - Crypto Sapien in this tweet

From it, we can see that there is likely to be a number of incentivized pools, and then a full list of options with anyone able to create a pool, with a huge range of customizable features. The interesting thing to note is that by providing into one of these pools, LP's will have proportional ownership of the pool including governance rights. The OSMO token will be a liquidity mining and yield farming token, with governance over the platform.

The possibilities of having multi-coin pools, and in effect being able to build a portfolio of interesting Cosmos coins in one location is most exiting to me. If it does end up being similar to Balancer, where you can create pools with up to 8 different assets, it could provide an amazing way to gain exposure to a range of cosmos projects all with one LP token.

This is the aspect that I am most excited about, and I for sure will be adding to some pools and working on building a portfolio of the best Cosmos project tokens in one place. An ATOM/OSMO/AKT/DVPN/XPRT pool, which automatically rebalances, allows asymmetric pooling and yield from swap fees and OSMO rewards would be a dream place to build an investment.

Wen Ser?

I'm starting to see optimism around that this could launch late May or early June, but I think more likely would be Q3 - meaning July. I'm really looking forward to this one, and will definitely be an LP in this network. I can't wait to have an alternate place to build my Akash stash, and for a Dex to be available to make buying AKT much more accessible. I'm following the teams discord server to keep up with developments.

There is probably a lot more detail that I don't really need to cover here. If you are interested to know more, here are a couple of links for further research:

Thanks for following along, stay tuned for more over the coming days looking at lots of different aspects to the "Cosmos based DeFi" explosion that is about to occur.

"Cosmos Based DeFi" series:

Part 1. Gravity Dex
Part 2. Osmosis
Part 3. Sifchain
Part 4. Thorchain



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