Home News Cosmos-based exchange Osmosis exceeded $1B in locked value

Cosmos-based exchange Osmosis exceeded $1B in locked value


The Cosmos-based decentralized exchange (DEX) Osmosis has reached $1 billion in total value locked (TVL).

Thus, on January 3, the trading volume on DEX was $95 million. Moreover, the price of the native Osmosis token (OSMO) has increased by 10.7% over the past day, according to CoinGecko.

Furthermore, the integration of Osmosis with Terra Bridge cross-chain bridge obviously facilitated the growth of the ecosystem’s TVL. Along with OSMO and ATOM, the algorithmic stablecoin UST and LUNA (the native token of the Terra ecosystem) are very popular.

The rewards for providing liquidity and receiving income from staking

The inflow of funds can also be facilitated by high rates of profitability of pools. The annual percentage rate (APR) of many of them exceeds 100%.

In addition, Osmosis offers an innovative approach to staking (“liquid staking”). Users place funds in pools with the OSMO token. However, besides the rewards for providing liquidity, there is an opportunity to receive income from staking.

Let’s assume that the profitability of funds placed in the ATOM-OSMO pool, as well as from OSMO staking, is 100%. By placing $1000 in the pool, the user will receive a daily income of $2.7 (at a rate of 0.27%). Additionally, the user will be charged $1.35 per day for the $500 invested in OSMO staking. Therefore, the total income per day will be $4.05. At the time of writing, Osmosis protocol ranks 15th in TVL in the DeFi Llama rating.

Terra became second-largest DeFi protocol

Recall that previously in December, Terra became the second-largest decentralized finance (DeFi) protocol. The Terra (LUNA) DeFi ecosystem has surpassed Binance Smart Chain (BSC) in terms of TVL. The figure exceeded $18.4 billion. Terra is now the second-largest blockchain, behind Ethereum (ETH).

Compared to December 2020, TVL has grown by 42,000%. A year ago, the number of funds blocked in the Terra ecosystem was $42 million. According to DeFi Llama, the ecosystem consists of 13 projects. The largest of them is Anchor, whose TVL is $7.79 billion.

Founded in 2018 by Do Kwon and Daniel Shin, the Terra project is one of the leading e-commerce companies in South Korea. In July, Terraform Labs, the company behind Terra, raised $150 million for an investment fund focused on ecosystem development.

Previous articleNFT-focused investment firm Metaversal raised $50M
Next articleCanaan expands its presence in Kazakhstan