Thread by @Cov_duk

#osmosis 101: The #Cosmos AMM that's been popping

Here's your everything guide to @osmosiszone, the PoS AMM DDEX protocol built on Cosmos.

A thread 🧵👇

2. #osmosis is a PoS chain that is an automated market maker (AMM) decentralized exchange (DEX) protocol built on Cosmos.

Osmosis enables users to provide liquidity, swap and eventually stake #Cosmos blockchain tokens.

3. An AMM is usually a pool of tokens, managed by smart contracts, to enable trading.

The liquidity pools and smart contracts replace the traditional system. People who pool their money, the liquidity providers (LP), earn fees as people trade.

https://twitter.com/Cov_duk/status/1501104658323963907

4. #osmosis is built in the #Cosmos ecosystem. This means that is connected and can easy interact with all blockchains built on Cosmos.

https://twitter.com/Cov_duk/status/1500922248034590724

5. This is big because the Cosmos ecosystem has a lot of traction, with big chains like #Terra on there and because Osmosis can still be sovereign .

6. #osmosis is more than just a AMM protocol.

It aims to enable devs deploy customized AMMs in Comsos and innovate in liquidity pools using Osmosis’ governance processes and interoperable builder toolkit.

7. Additionally since it is in the Cosmos ecosystem, it can use inter blockchain communication (IBC) to provide Osmosis services to the whole cosmos ecosystem.

Thus, it is the liquidity gateway for all things #Cosmos.

8. There are other Dexs in Cosmos like #thorchain.
However, #thorchain has a different focus. It is currently focusing on ETH, btc and the being the bridge between those worlds and cosmos.

Osmosis has more of a Cosmos focus.

9. #osmosis has self governing liquidity pools, which means that it very customizable and is intended for innovation.

People can create fully customizable permissionless pools based on voting. LPs can vote to change just about anything they want.

10. #osmosis has superfluid staking, meaning that users can stake their tokens on the tokens’ respective chains.

$RUNE can be staked in #thorchain.

This is big as it allows users to simultaneously stake their tokens and earn rewards while providing liquidity and earn interest

11. #osmosis is maximal extraction value (MEV) resistance and includes tools to help reduce MEV.

Essentially, miners can decide what to mine and the sequence of transactions. This diminishes the user experience and threatens network stability.

12. MEV refers to profits that can be made by extracting value from reordering, inserting or censoring transactions within blocks being produced.

#osmosis doesn't let this happen, which saves the user money and makes the experience better.

13. The native token $OSMO was airdropped to $ATOM stakers.

This helped the distribution be more decentralized and ensures that a few whales dont sit on everything. $OSMO is used for governance and staking.

14. You can also get airdrops by staking your $OSMO.

Here’s a really interesting thread on it by @cryptolikemo

https://twitter.com/cryptolikemo/status/1497780470318354440

15. #Cosmos is popping.

A lot of innovation is taking place and a lot of liquidity & users are coming in. IBC is huge.

Projects like #EVMOS and #thorchain are trying to connect #ETH and ETH compatible chains to Cosmos.

16. All of these moves have brought in and continue to bring in a large number of users.

#osmosis is well positioned to be the liquidity gateway of COMOS. As Cosmos grows, $OSMO grows.

17. Since its launch, it has seen tremendous growth. The total value locked (TVL) has grown exponentially and now sits at ~$1.64B.

#Cosmos chains like #Terra have been doing really well, brining in more people and more liquidity to the space.

18. As this happens, #osmosis , which is one of the best positioned Dexs in Cosmos, will do incredibly well.

19. Accounts to follow for #osmosis insights:
@crypto25807202 @cryptolikemo @Satadaes @Satadaes @eternalmcd11 @ImBeingJuJu @SmindCrypto @DCA_Cryptoz @oatcrypto @mgsre1999 @cosmoscoffeeDFI @just_cruise_ @TradinginTime @rhythms29 @coinhippoHQ @bluekirbyfi

RT would mean a lot!

20. Accounts to follow for #osmosis insights:
@osmosiszone @larry0x @OsmoMinistryMkt @OsmoSupportDao @cryptodanvans @EncryptionDog @bullishbish @Cosmos_Tic @MarbleDaoCosmos @Secretmansam @Joshyysmartt @nickth3kid @TendermintTimmy @misavocado @DelucaDougie

RT would mean a lot!

21. Hope this was insightful. I regularly post 101s and breakdowns, follow to stay updated. If you enjoyed this, an RT would mean a lot!

Here are some of my past 101s:

https://twitter.com/Cov_duk/status/1500714387417436168

Couple of corrections & updates: MEV front running projection is the next major development for Osmosis. It is not live yet.

Additionally, with cosmos expanding, Osmosis wants to capture ETH and BTC users