Research Summary
The Osmosis Protocol Usage Report for Q2 2023 indicates a decline in volume, liquidity, and fees on the Osmosis network. Despite this, the network saw over $400 million in net IBC transfers. The report also highlights the numerous steps Osmosis has taken to improve its ecosystem and tokenomic design, including the introduction of OSMO 2.0, which aims to improve the sustainability of the protocol and better align incentives.
Actionable Insights
- Monitor the impact of OSMO 2.0: The introduction of OSMO 2.0, a revised tokenomics model, is a significant development. It includes measures such as a reduced inflation rate, extended emission timeline, revised token emission allocation, a protocol revenue burn mechanism, and a fee share mechanism.
- Assess the implications of reduced volume and liquidity: The report indicates a decline in volume, liquidity, and fees on the Osmosis network. Understanding the reasons behind this trend and its potential implications is crucial.
- Consider the potential of IBC transfers: Despite the overall decline, the network saw over $400 million in net IBC transfers. This could represent a significant opportunity.
- Stay updated on network releases and proposals: Osmosis has been active in implementing proposals and network releases to improve its ecosystem and tokenomic design. Keeping track of these developments can provide valuable insights into the network’s future direction.
