TORTOLA, British Virgin Islands, Oct. 27, 2021 /PRNewswire/ — Osmosis is a first-of-its-kind automated market maker (AMM) that marks a foundational shift in how liquidity providers can benefit from Interchain DeFi. The Osmosis Foundation today announced the close of its first fundraise – a token sale from the foundation treasury – led by Paradigm. Also participating are Robot Ventures, Nascent, Ethereal, Figment and Do Kwon. The funding will help the Osmosis Foundation grow the Osmosis protocol. Osmosis allows users to compound yield by leveraging Osmosis’ novel innovation called Superfluid Staking; eliminates miner extractable value; and provides greater latitude for developers to innovate within DeFi given the flexibility of the Cosmos SDK.
"Osmosis is our first AMM investment outside of the Ethereum ecosystem. The Osmosis contributors are a world-class team of engineers, product innovators, and operators bringing the right product to market at exactly the right time," said Charlie Noyes, investment partner at Paradigm. "The launch of IBC, Cosmos’ cross-chain interoperability protocol, kicked off a Cambrian explosion of developer activity and experimentation. Osmosis is the natural center of gravity for liquidity in Cosmos’ emerging DeFi ecosystem."
Osmosis ranks #1 among Cosmos Inter-Blockchain Communication (IBC)-enabled chains by number of IBC transactions, comprising over 42% of all IBC transactions made across the entire ecosystem. The DEX itself has seen a near-exponential growth rate in total value locked on-chain, exploding to an unprecedented $500M TVL within 4 months of being launched.
Osmosis is launching innovative AMM features which are uniquely possible given Cosmos’ focus on sovereignty and permissionless interoperability. Osmosis runs as an application-specific chain ("appchain") which provides the flexibility for defi innovations which are not possible on a shared virtual machine.
One unique feature is Superfluid Staking, which eliminates the tradeoff between token holder yield and network security. Token holders typically must choose between staking yield or liquidity yield, which presents a tradeoff for proof of stake protocols whose security relies on tokens being staked. With Superfluid Staking, LPs can stake their LP tokens on Osmosis, thereby earning pro rata staking rewards in OSMO such that token holders can compound staking and liquidity yields – while the network suffers no reduction in security.
Osmosis also will incorporate MEV-resistance by implementing instant block confirmations, making the DEX a fairer platform for token holders. Osmosis users will be largely protected from frontrunning risks that plague similar AMMs running on Ethereum and other L1s, whose transaction processing permits miners or validators to cherry pick transactions.
"Osmosis started as a proof-of-concept collaboration between many independent contributors to the Cosmos ecosystem," said Josh Lee, Director of Osmosis Foundation. "We got our momentum by winning the 2020 Cosmos hackathon, HackAtom V. Since then, we’ve taken it from an idea to a $2.2B market. We are excited about the future – both providing liquidity to the rapidly expanding Cosmos ecosystem, as well as contributing novel DeFi innovations to the overall blockchain community."
Interchain DeFi is going Superfluid.
SOURCE Osmosis Foundation