Introduction
Osmosis is a proof-of-stake (PoS) blockchain based on the Cosmos SDK. It is specifically designed for AMM applications, facilitating the permissionless trading of assets against liquidity pools.
AMM Operations
Users providing liquidity to these pools, known as liquidity providers (LPs), earn a portion of the transaction fees. Osmosis offers additional incentives to LPs in the form of its native token, OSMO.
Unique Features
Leveraging its control over the tech stack, Osmosis provides features unique to AMMs:
- Superfluid Staking (SFS): Enables LPs to stake a portion of their LP tokens, increasing network security and earning additional staking rewards.
- Threshold Encryption of the Mempool: Introduces MEV resistance at the protocol level.
Cosmos Ecosystem Gateway
Osmosis serves as a liquidity gateway within the Cosmos ecosystem, enabling IBC deposits and withdrawals.
External Development
The integration of CosmWasm has fostered the creation of external applications and incubated projects on Osmosis.
Participating in Osmosis
As a PoS network, token holders can participate in securing the blockchain by staking OSMO. They can become delegators or validators, with validators actively参与ing in consensus and delegators entrusting their stake to validators.
Risks of Staking
Slashing is employed to discourage malicious behavior. Downtime or double-signing can result in the burning of a validator’s stake.
Governance
OSMO stakers have a voice in on-chain governance, from discussing proposals to voting on them. A quorum of 20% total staked OSMO is required for a vote to be valid, and a majority must approve the proposal.
Benefits of Coinbase Cloud for Osmosis Nodes
Coinbase Cloud provides expertise, security, and guidance for running Osmosis nodes. They participate actively in governance and provide insights to customers.
Disclaimer
Coinbase has a financial interest in Osmosis and related entities. The risk of loss in cryptocurrency, including staking, should be considered. The information provided is subject to change by the underlying protocol network.
Credit and rights belong to MigBase.com