Osmosis Quarterly Report: Q1 2023

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Key Takeaways

  • Osmosis successfully completed the V14 upgrade, which included the Geometric TWAP oracle, downtime detection module, and upgrades to Cosmwasm.
  • There were 9 different integrations during Q1 2023 for the Osmosis chain, ranging from dApps, Development tooling, and Wallet integrations.
  • Osmosis integrated 19 different assets to the Osmosis DEX, growing the list of supported assets to 120.

The cryptocurrency market saw an increase in interest during the first quarter of the year. The macroeconomic environment appears to have played a significant role as investors moved into risk-on assets like cryptocurrencies to seek shelter from inflation fears.

Chain Upgrades

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During Q1, the Osmosis chain underwent one upgrade. The Osmosis v14.0.0 — Neon Upgrade went live on Monday, January 23rd, 2023, at UTC 16:00. It introduced the following features to assist smart contract developers in building more easily on Osmosis:

Geometric TWAP

This built on the security previously provided by the addition of the TWAP implementation during the v12 Upgrade. This implementation added an additional layer of security against upward price manipulation and increased the cost of an attack on Osmosis.

Downtime Detection Module

This module added functionality for detecting if Osmosis was recovering from downtime, allowing for oracles to query the module and determine how long the chain has been recovering from downtime. This was particularly useful for the lending protocol Mars, which relied on Osmosis price data to determine liquidation events.

Upgrade to IBC v4.2.0 and Wasm Hooks

This upgrade makes it possible for cross-chain wasm hooks to be reusable, setting the groundwork for the upcoming launch of Osmosis Outposts, which will enable cross-chain swaps to occur within external chains leveraging Osmosis’s liquidity.

A full breakdown of the upgrade can be found within Osmosis Labs github page.

Ecosystem Integrations

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Q1 was an exciting quarter for the Osmosis Ecosystem, integrating 9 different ecosystems, ranging from data analytics dashboards, applications, and tooling, all of which added increased functionality.

Mars Protocol

Mars deployed as a sovereign blockchain, deploying its first outposts on Osmosis. Bringing borrowing and lending to the deepest-liquidity, highest-volume DEX on Cosmos.

Apollo DAO

Complementary to Mars Protocol, the relaunch of Apollo DAO’s leveraged yield farming solutions paved the way for auto compounding strategies utilizing Osmosis’s liquidity pools.

Babylon Chain

Osmosis governance voted to enable Bitcoin security on the Osmosis chain, the first proposal, which signaled phase 1 of 3 to fully leverage the security of the Bitcoin network and enjoy benefits such as fast stake unbonding and extra security for high-value transactions.

Celatone Explorer

Built by Alles Labs, Celatone allows both developers and regular users to find, view, query, and execute CosmWasm code on-chain using a user-friendly graphical interface. Initially launching on both the Osmosis Testnet and Mainnet, users can now find, view, query, and execute CosmWasm code on-chain.

Squid Router

Squid enables native cross-chain liquidity transfers by leveraging Axelar’s General Message Passing. As such, liquidity can now flow from within 8 different blockchains natively into Osmosis.

CryptoTaxCalculator

The integration of Crypto Tax into the Osmosis Ecosystem brings some relief for those who have to face the cumbersome task of doing taxes and reporting crypto transactions.

The tax calculator properly accounts for on-chain transactions such as swaps, liquidity deposits/withdrawals, and any staking-related transactions.

Atomic Wallet

Adding yet another way to maintain self-custody of your assets, Atomic Wallet integrated OSMO to their wallet interface and enabled OSMO staking.

Quasar Finance

Quasar recently launched their DeFi vaults as a sovereign chain. Their initial offering (OSMO PRO) enables users to enter Osmosis liquidity pools via different strategies while enjoying the power of auto-compounding strategies and increased capital efficiencies. Quasar is the second application to launch as part of the Osmosis DeFi Ecosystem.

Token Integrations

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Osmosis integrated over 19 different assets across 4 different blockchain ecosystems, further expanding its liquidity across the Interchain.

  • NOM (Onomy)
  • stkATOM
  • DYS
  • HOPERS
  • wAVAX.axl
  • arUSD
  • PLQ
  • wFTM.axl
  • CANTO
  • qSTARS
  • WYND
  • polygonUSDC.axl
  • avalancheUSDC.axl
  • MARS
  • CNTO
  • stLUNA
  • stEVMOS
  • NRIDE
  • EBL

Key Governance Proposals

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Osmosis Governance is one of the most active communities within the Cosmos Ecosystem. As the liquidity hub, the vast majority of changes, upgrades and implementations are approved by governance after a thorough review.

Here are the key proposals implemented during Q1 2023:

Osmosis is the liquidity hub of Cosmos. Q1 demonstrated its ability to grow its ecosystem by integrating a wide range of products into its product suite, from sovereign app chains launching complementary products to the Osmosis DEX and wallets. Osmosis offers the largest selection of tokens within the Cosmos ecosystem with the deepest liquidity.

Q2 should be even more exciting with the launch of concentrated liquidity, the first Osmosis Outposts coming online, a myriad of protocols going live further adding to the Osmosis ecosystem experience, and the Osmocon convention this July, which should be packed with additional reveals. Stay tuned!