The OSMO token is used as a governance token, a token for distribu ting liquidity mining rewards, and for setting the base network fee. The project also outlines its liquidity provider incentives, claiming that third parties will be able to add incentive mechanisms to their liquidity pools. According to its vision statement, the protocol claims that “after integrating native Cosmos assets, Osmosis will integrate with non-IBC enabled chains, including Ethereum-based ERC-20s (using the Althea gravity bridge), a variety of chains including Bitcoin-like chains, and alternative smart contracting platforms by leveraging custom pegs”. Stakeholders will vote and help plan to implement new features for the protocol, like front-running protection, validator-backed oracles and more.”įurthermore, with built-in IBC, the platform can connect with the Cosmos chain ecosystem. “Almost every element of the protocol is intended to be upgraded as necessary to keep Osmosis on track to becoming the most innovative AMM platform operating today. “To make such a progressive, adaptable protocol work, governance will be a key factor to Osmosis’ success,” it stated. The governance mechanism in the ecosystem enables AMM stakeholders, also called liquidity providers, to vote on how the various pools will be managed.Īccording to a blog produced by the platform, governance is an integral part of the Osmosis ecosystem. Not only are parameters like swap fees or token weights customisable for each liquidity pool, so are curve algorithms and time-weighted average price calculations, according to the project’s official literature. Rather than having to adhere to a one-size-fits-all approach when developing AMMs, designers are able to render highly-customised AMMs to ensure they are suitable for their function. Osmosis claims that unlike other AMMs, such as Bancor or Uniswap, Osmosis uses a “process of experimentation and rapid iteration”, whereby the “wisdom of the crowd” is leveraged in order to create bespoke solutions to liquidity pools. The Cosmos token, OSMO, has performed well since its launch and has gained significant market traction – but what are the consequences of this for an Osmosis price prediction?įirst, let’s take a look at the token’s background before examing what forecasters are predicting.
Launched in late 2021, Osmosis was the eighth blockchain on the Cosmos network to enable inter-blockchain communication (IBC), and the sixth platform to connect to the Cosmos Hub. The developers of Osmosis explained on Medium that, using the Cosmos SDK, they wanted to create a protocol that would let users “design, build and deploy their own customised AMMs”. The network focuses on customisable AMMs, including token swaps, liquidity pools staking and governance.
Osmosis coin price prediction: Expert opinionīuilt on the Cosmos blockchain, Osmosis purports to be an advanced automated market maker (AMM) protocol.
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