The adoption of decentralized finance has seen enormous growth over the past several years. It has intriguing potential in decentralized lending, borrowing assets, yield farming, and other activities. The DEXs are central to these developments and advancements.

In the past, decentralized exchanges (DEXs) have run across issues related to the capabilities of their blockchains. In 2021, Osmosis was launched, a next-generation DEX that supports many chains. It provided a significantly greater number of functionalities than conventional single-blockchain DEXs.

In this blog post, you will learn what Osmosis is, its history, and why it is so unique in its functionalities.

What Is Osmosis (OSMO)?

Osmosis is a DEX protocol and AMM that employs smart contracts to determine the price of digital assets to provide liquidity through a peer-to-peer (P2P) method and to exact deals between users. An AMM is a decentralized exchange protocol that prices crypto assets in liquidity pools.

By contributing tokens to these pools, users are helping to encourage decentralized liquidity, which is ultimately utilized to enable trades on the exchange. Suppose you take part in the platform as a liquidity provider (LP). In that case, you can earn trading fees and freshly generated LP tokens, which are presented as an incentive for participating.

What Is an OSMO Token?

The OSMO token is the governance token and the currency for paying transaction fees. After an individual has connected their digital wallet, only then will they be able to complete any transactions and carry out a variety of actions. Users must also hold sufficient amounts of the native token to cover the costs of any transactions.

Users are more likely to participate in liquidity pools in which they can earn returns due to the recent spike in the popularity of applications related to decentralized finance. Many of these applications offer users financial incentives with far higher yields than traditional institutions such as banks. Examples of such institutions include banks.

Token holders of the OSMO cryptocurrency also have voting rights for any proposals that are put forth that involve upgrades, improvements, or any other modifications made to the Osmosis DEX.

History of Osmosis (OSMO)

Initially founded by Josh Lee and Sunny Aggarwal, Osmosis Labs developed most of the early code for the Osmosis protocol. The funding for the creation of the platform came from a token sale in October 2021. The deal brought in $21 million. Since the beginning of 2022, Osmosis has had a meteoric rise in popularity, which has resulted in its TVL surpassing the $1 billion mark and significantly expanding.

Osmosis is a decentralized initiative, which means that its operation is not the responsibility of a single individual or organization. In this case, governance is handed over to OSMO token holders, collectively known as the Osmosis community. The Osmosis protocol is subject to alterations and updates, which this group votes on.

What makes Osmosis (OSMO) unique?

Osmosis is a one-of-a-kind automated multi-asset management system (AMM) since it allows users to construct their liquidity pools or copy existing ones with customized settings. Users can natively trade assets from more than 100 chains within the Cosmos ecosystem, which is possible because Osmosis is based on the Cosmos ecosystem.

Even though most AMMs available, today are reasonably effective at providing liquidity in a decentralized manner, they still function as service-based products: the platform generates pools that users can join without incurring any fees.

The effectiveness of the many liquidity pools at users' disposal could be hindered due to this in the ever-changing environment of decentralized finance (DeFi). Because of these problems, the Osmosis AMM was conceived of as a "serviced infrastructure" that allows users to modify the values of tokens and the supply, decreasing the barrier to establishing custom-built AMMs. This was done to assist in solving these problems.

The concepts of sovereignty and heterogeneity are at the core of the Osmosis protocol. Osmosis achieves this goal through the utilization of self-governing liquidity pools. These liquidity pools that already exist in Osmosis are not hard-coded in any way.

Users can use the native Osmosis token (OSMO) to vote on pool parameters and protocols, offer liquidity, and stake their positions. Simply put, it grants the token owners the ability to determine the composition of particular liquidity pools and play a vital role in the governance of the Osmosis protocol.

Tokenomics

How to Buy OSMO Coins?

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including OSMO, users can now trade easily and seamlessly.

If you already have a CoinEx account, this is how to purchase and sell OSMO on CoinEx:

Enter your login information: To access your CoinEx account, visit the website or launch the app and enter your email and password.
Put funds in your account to make OSMO purchases. You can deposit the funds via bank transfer, credit card, etc.
Once you have funds in your account, you may buy OSMO by going to the OSMO trading page and choosing the trading pair you wish to use.
Tokens (USDT, BTC, ETH, and CET, etc.) can be exchanged for OSMO. Put in your order and the quantity you want to buy.

OSMO FAQs

What is the market cap of Osmosis (OSMO)?

The total market cap is $765.47 million.

How many Osmosis (OSMO) tokens are there?

The total supply of OSMO is 1.00 billion. 28.24% of the tokens are in circulation.