What Is Osmosis (OSMO)?

Osmosis (OSMO) is an automated market maker protocol (AMM) for the ATOM ecosystem. Osmosis was inspired by Balancer and Uniswap and wants to provide tools that go beyond traditional token swaps and offer users DeFi functionality for a cross- chain world.

For example, developers can build customized AMMs with sovereign liquidity pools and users can launch liquidity pools with unique parameters like bonding curves and multi-weighted asset pools. That means a liquidity pool does not always have to follow a 50:50 distribution between its assets but can be customized according to the wishes of the party setting up the pool.

What Makes Osmosis Unique?

The Osmosis blockchain protocol has three key strengths that set it apart from other AMM money market protocols.

First, Osmosis has customizable liquidity pools. Unlike Uniswap, where LPs can provide liquidity only to a two-token pool with an equal ratio, Osmosis allows for providing liquidity to pools with several tokens and unequal ratios.

Osmosis argues that agents in a maturing DeFi market like arbitrageurs and LPs need a more flexible solution that allows them to self-identify opportunities and react to them by adjusting parameters. Thus, on Osmosis LPs can adjust factors slippage, transaction fees, and more.

Tokenomics

OSMO is the protocol's governance token with a total supply of 1 billion. At genesis, 100 million OSMO was released, split evenly between airdrop recipients and a strategic reserve. Tokens are being released at the end of each daily epoch and follow a "thirdening" schedule, meaning token issuance is cut three times a year. In the first year, 300 million OSMO will be released, in the second 200 million OSMO, in the third 133 million OSMO, and so on.

Newly released tokens are distributed as follows:

Staking Rewards: 25%

Developer Vesting: 25%

Liquidity Mining Incentives: 45%

Community Pool: 5%

The total token distribution is as follows:

Liquidity Reward Mining: 40.5%

Developer Vesting: 22.5%

Staking Reward: 22.5% Community Pool: 4.5% Strategic Reserve: 5%

Airdrop: 5%

How Is the Osmosis Network Secured?

Osmosis is built on the Cosmos blockchain, a layer- 1 chain describing itself as "Blockchain 3.0" because of its interoperability. Cosmos uses a proof-of-stake consensus mechanism to connect different blockchains to a "web of blockchains" that can deal with the problems all modern blockchains face: scalability, transaction speed, and transaction fees.

By creating a web of interoperable blockchains, Cosmos can provide better performance than rival chains while not compromising important factors like low fees and quick transaction finality.

Where Can You Buy Osmosis (OSMO)?

OSMO is available on MEXC , Osmosis & Binance Exchange.