Osmosis (OSMO) - a decentralized exchange and token that can mess up

If the cryptocurrency exchange increases its average daily trading volume from USD 4 million to USD 46,6 million within six months, it is worth taking a look at both it and the token it issued. Osmosis (OSMO) is still a relatively young project that is getting better at the very competitive blockchain market. We check what prospects for the future are. 

We are continuing the cycle of the Forex Club portal in which we analyze and describe the largest, highest-valued, most interesting, most developing, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for OSMO - token of the decentralized cryptocurrency exchange Osmosisthat allows you to exchange funds between different blockchains. And he's doing better and better.

What is Osmosis

Even in July 2021, Osmosis had an average daily turnover of USD 4 million. After just six months, in December 2021, the average daily turnover was already $ 46,6 million. What convinced customers so quickly that it is worth using its agency? 

Above all, the ease of operation. In Osmosis, all transactions are supported by smart contracts. So there are no middlemen, because in fact clients exchange tokens with each other using the new generation automatic market maker (AMM). Importantly, blockchain is extended to other networks, such as Ethereum. It can be extended to virtually all the others blockchains by protocol Inter Blockchain Communication (IBC).

Osmosis, of course, is also one of the first Cosmos AMM applications to offer liquidity pools that customers can earn by adding their tokens to interest-bearing pools to facilitate quick token exchanges. This makes transactions between the chains cheap. 

Osmosis exchange token - OSMO

You can also design your own decentralized applications through Osmosis. The fees for the use of the infrastructure are of course paid at the OSMO. Token holders can also vote on updates as well as changes in platform proportions, e.g. in terms of the liquidity pool to be launched and rewarded. Of course, in proportion to the tokens you have. 

The OSMO token is also a security for the liquidity of the stock exchange. Already at the beginning of its existence, 100 million units went to users, developers, players and liquidity providers. As part of securing liquidity, a strategic reserve has also been introduced, which is used to cover, for example, awards for those who perform key projects in the network.

You can earn more with OSMO tokens when you provide liquidity over a longer period of time. The rule is simple - the longer the transfer period, the higher the interest rate. Initially, you even got double prizes for providing liquidity - from two different pairs in which our token appeared. However, this was due to the fact that the funds could not be withdrawn for two weeks. So the only risk was a change of course, but high rewards more than compensated for it.

OSMO cryptocurrency quotes

As of April 29, 2022, OSMO tokens can be traded on 14 cryptocurrency exchanges from all over the world, including the largest of them - Binance. You have to pay $ 4,32 for each of them. Currently, 357 of the target 258 units are in circulation, which translates into a market cap of over $ 890 billion. The peak of trading took place on March 1, 000, when the Osmo token was priced by the market at USD 000. The project's capitalization then exceeded $ 000 billion.