While most of the main cryptocurrencies are devaluing, we found a currency that managed to have a reasonable appreciation, in the first days of 2022. Continuing on the wrong way.
At the time this article is written, according to data from the platform CoinCheckup, OSMO is up 32.1% this year. Something that draws attention, in the current scenario of cryptocurrencies decline.
But what is ?
According to documentation provided by “The AMM Laboratory, Osmosis Zone is a “Defi Exchange”. A cryptocurrency exchange, decentralized (DEX). And its governance token is Osmosis (OSMO).
The Osmosis token is a governance token that allows holders to decide the future of the protocol, including all the details of its implementation. It will initially be used for the following (although governance is free to add or remove these roles):
º Vote on protocol updates
º Allocation of liquidity mining rewards to linked liquidity providers
º Configuration of the basic swap rate of the network
How does your ecosystem work?
Having governance as a critical point of how Osmosis evolves. Active network stakeholders will be responsible for proposing, verifying and approving protocol updates.
Pools eligible for liquidity rewards will be selected by governance participants, allowing stakeholders to formulate an incentive strategy that best aligns with the protocol’s long-term interests.
While initially functioning as both a governance token and a staking token, Osmosis intends to transition to a Cosmos Hub shared security zone once the feature is ready.
What’s the Differential?
The advent of automated market makers (AMMs) has brought a new wave of crypto-economic utility and bond curve applications. Today, AMMs have become such an integral part of the blockchain use case that it would be hard to imagine the crypto space without them.
What started with Bancor, then popularized by Uniswap, decentralized exchanges via automated market makers (AMM) have gone through several iterations of evolution, now being expanded by Curve, Balancer and other innovative protocols. However, the customization offered by these protocols still lags behind their potential to open up the market to a wider range of decentralized assets.