Osmosis (OSMO) debuted in 2021 as a decentralized exchange (DEX) and DeFi-centric appchain. Its primary application, the Osmosis DEX, functions as the top DEX and DeFi hub for the Cosmos network and other ecosystems.

Because it operates as an appchain, Osmosis manages the entire blockchain stack with more autonomy than DEXs constrained by a parent chain’s code. This precise control has allowed for the creation of advanced tools such as Smart Accounts, 1-Click Trading, and high-performance on-chain orderbooks.

So far, the platform has processed over $40 Billion in trading volume. Additionally, more than 140 distinct blockchains have linked to the Osmosis appchain through IBC (Inter-Blockchain Communication Protocol) and various external bridges.

The project has achieved notable success by acting as a central point for liquidity and trading for assets from appchains that lack their own native DEX, such as Celestia and Akash. This represents one of the biggest untapped sectors in crypto, considering that even Bitcoin is an appchain without a native DEX.

With a growing range of DeFi applications, Osmosis combines its own tools with robust third-party integrations to offer a comprehensive experience that aims to surpass centralized exchange services.

Sunny Aggarwal, Dev Ojha, and Josh Lee established Osmosis. Prior to this venture, all three worked at Tendermint, playing key roles in creating and launching the Cosmos SDK, IBC, and Cosmos, which stands as one of the earliest Proof-of-Stake blockchain networks to reach production. Leveraging the groundwork they laid at Tendermint, they co-founded Osmosis with the aim of building a DeFi platform capable of competing with even the strongest centralized exchanges.

Paradigm, a digital asset investment firm holding interests in protocols like Uniswap, Maker, and Coinbase, is a major investor in Osmosis. Additional backers include Bain Capital, Electric Capital, and Anatoly Yakovenko, the co-founder of Solana.

Osmosis (OSMO) launched in 2021, soon after the introduction of IBC. It rapidly established itself as the first IBC-enabled application to find product-market fit, serving as the central hub for DeFi and liquidity within the interchain ecosystem. As an appchain devoted to decentralized finance, it holds the distinction of being the first fully multichain decentralized exchange.

In addition to its native DEX, Osmosis supports an expanding network of DeFi protocols and third-party integrations. These provide a wide array of services, including managed yield vaults and perpetual derivatives markets.

The Osmosis chain is specialized to function as an efficient platform for decentralized finance. It is engineered for rapid transaction finality and uses blockspace auctions to automatically balance liquidity both within the chain and across different chains. Liquidity providers on Osmosis can utilize optimized concentrated liquidity positions, fully on-chain order books, and various custom pool types alongside automated strategies. As developers create new pool types, they can seamlessly interact with existing liquidity because they are integrated into the pool framework built directly into the chain.

Designed with user experience in mind, Osmosis includes features such as the ability to pay gas fees using over 140 different tokens, smart accounts that allow for one-click blockchain interactions, and asset standardization via Alloyed Assets. These elements aim to deliver a more intuitive and seamless experience for all users.

Osmosis is not merely a decentralized exchange; it strives to be the hub of a growing multichain economy. Leveraging experience from the Cosmos ecosystem, it aims to play a major role in the development and expansion of this multichain economy.

OSMO serves as the governance token for the protocol, with a total supply capped at 1 billion. At genesis, 100 million OSMO entered circulation, divided equally between airdrop participants and a strategic reserve. New tokens are distributed at the conclusion of every daily epoch. The issuance rate originally adhered to a "thirdening" model, which reduces token creation by a third annually. However, Osmosis Tokenomics are subject to change via blockchain governance, and this schedule was accelerated in 2023, leading to a decrease in yearly issuance.

Osmosis is an independent proof-of-stake chain secured by its own validators.

You can purchase OSMO on Osmosis, Binance.com, Coinbase, and MEXC.

Explore additional appchains within the Cosmos ecosystem of IBC connected chains: