Osmosis is an automated market maker (AMM) protocol built for liquidity providers. Osmosis uses Akash to host API and RPC endpoints. With Osmosis, users are able to swap cross-chain assets within the Cosmos ecosystem and provide liquidity for IBC-enabled Cosmos assets like AKT and ATOM for the first time while earning OSMO and AKT rewards.
User experience is critical to the success of any trading protocol and one of the biggest obstacles in creating a consistent and reliable trading experience is short-term mercenary farming where liquidity providers quickly add and remove liquidity to pursue the best yields. With that in mind, Osmosis has leveraged two novel devices to encourage long term liquidity: Bonded liquidity Gauges and Exit fees (a fee LPs pay when withdrawing liquidity from a pool).
45% of daily issuance of OSMO rewards will go towards incentivizing liquidity providers to bond their LP tokens to promote long-term liquidity on Osmosis’ AMM. Osmosis users can also choose to bond their LP tokens after providing liquidity. Similar to OSMO staking, LP tokens remain bonded for a certain length of time, except users are allowed to choose the length of their own unbonding period. Staking requires a two-week unbonding period.
To further promote ‘long-lasting incentive programs’, the Osmosis team has enabled external incentives by outside parties to supplement Osmosis’ own liquidity programs. This provides Akash Network’s team the capability and flexibility to incentivize with additional rewards for bonding gauges that promote the overall health and liquidity of pools that include AKT, such as our initial AKT/ATOMs, or potential future pools within the Cosmos ecosystem, like Terra’s $Luna, Binance’s $BNB, or Thorchains $Rune.
For a deeper dive into bonded liquidity gauges and other features that make Osmosis so unique, read Osmosis’ Liquidity Mining 101.
- Osmosis Chain Launch: June 18th 5PM UTC
- Osmosis Public Launch: June 19th 5PM UTC
- AKT LP Rewards turned on: Earliest on June 21st
With the successful launch of Osmosis, the first IBC-enabled decentralized exchange, for the first time ever, any developer or AKT buyer can now access AKT in a permissionless and frictionless way, from anywhere in the world, swap, and earn rewards for providing liquidity for AKT and any other IBC-enabled asset.
With Osmosis, any developer or AKT buyer can now access AKT in a permissionless and frictionless way, from anywhere in the world. All that’s needed are a few things: your Keplr wallet , a Cosmos ecosystem token starting with ATOM, a computer, and Internet access.
For holders of AKT the ATOM<>AKT pool will also feature lucrative incentives for liquidity providers on Osmosis. Early liquidity providers receive a larger proportion of rewards in both OSMO and AKT.
“We’re excited to have Akash Network be one of the first launch partners of Osmosis. Akash Network enables a new generation of resilient, decentralized Internet infrastructure to be built, and Osmosis provides a gateway for anyone to take part in this decentralized economy. For Osmosis to be a truly decentralized exchange, we need to be built on a decentralized infrastructure.
Osmosis will be a proud user of Akash infrastructure to host our applications and API-serving nodes.”
Sunny Aggarwal, Co-founder of Osmosis