Osmosis cryptocurrency exchange was founded in June 2021 as a decentralized exchange (DEX) that utilizes the Inter-Blockchain Communication Protocol (IBC) to link projects. This modern Automated Market Maker (AMM) protocol was created with the help of Cosmos software development kits, allowing developers to construct and deploy their own custom AMMs. It works as a decentralized peer-to-peer blockchain platform for providing liquidity and token trading services.
Osmosis crypto exchange utilizes a Proof-of-Stake protocol for its decentralized finance (DeFi) application that gives users the ability to trade, swap, and stake on different blockchains in the Cosmos network. Originally developed as a module for the CosmosHub, it eventually resulted in a separate chain from the same hub. Therefore, Osmosis is often referred to as a Hub AMM.
The platform is open to all countries, being a decentralized exchange. While it is not restricted, certain countries have restrictions around cryptocurrency trading and other blockchain-related activities. Ensure you check your country’s laws about crypto so as to ensure you don’t break any laws by using the Osmosis cryptocurrency exchange. Furthermore, the platform does not require to go through a tedious KYC verification process. To gain access to the service, all you have to do is to connect your wallet and you are good to go.
The major market on the platform is the OSMO market. This market comes with over 60 Osmosis trading pairs, supporting over 75 different cryptocurrencies. There is no Osmosis spot trading feature available for users. Users must make use of the swap feature to carry out their transactions. Additionally, leveraged, margin, and futures trading options are unavailable as well.
The native governance token OSMO powers the platform. In addition to voting on protocol updates, holders of the token can take advantage of liquidity mining rewards and set the base network swapping fee. The token also serves as an option for staking. Check out the current Osmosis crypto price here.
In terms of Osmosis exchange fees for swaps, the rates may differ from 0.1% for direct swaps to 0.5% for multi-hop Osmo transactions. However, the most common fee is 0.2%, with a few exceptions. Either way, the swap fee is specified by pool creators for each pool individually. Talking about other Osmosis crypto fees, there are transaction fees that differ based on the computation and storage costs of the transaction and exit fees that are set individually for each pool.
Osmosis crypto exchange has developed a unique way of staking called Superfluid Staking. This feature allows OSMO holders to benefit from both yield-generating and liquidity-providing activities, thus maximizing their profits without having to make sacrifices.
Liquidity Providers (LPs) can increase their funds in the pools and receive swap fees, set by the pool owners. Generally, the Osmosis crypto price for this is around 0.3%. After that, users are able to lock up LP tokens for a period of 1, 7, or 14 days using OSMO staking and voting, which needs to be conducted through the Keplr wallet made exclusively for Cosmos' ecosystem.
About the Company
Headquartered In Singapore, Osmosis labs, the mother company of the Osmosis cryptocurrency exchange, was founded by Josh Lee and Sunny Aggarwal.
Josh has a history of being an editor at Blockchain Research, which became the number-one Korean blockchain media outlet in its first six months. Before that, he was a project manager at Lunamint where he developed Lunagram – the first crypto wallet within Telegram messenger. He also worked as an ecosystem development analyst for Tendermint.
Sunny previously served as a research scientist for Tendermint as well as a core developer of Cosmos SDK and Gaia blockchain. He is also the co-host of Epicenter – a podcast about blockchain, Ethereum, Bitcoin, and distributed technologies. Additionally, he is a co-founder of Sikka – a company focused on DeFi protocols.
In October 2021, the project held an Initial Coin Offering (ICO), which was managed by Paradigm Ventures and enabled it to raise $21 million. The beginning of 2022 saw a marked increase in the value of its native token OSMO due to increased attention paid to cross-chain compatibility with other blockchains. This rise was evidenced by greater Osmosis trade volume, a rapid upsurge in TVL (Total Value Locked), and the launch of bridges that connected Cosmos' ecosystem to Ethereum-based networks. Osmosis experts created the original code while decentralized validators are responsible for running the platform itself.
Check out the current Osmosis volume above.