Cosmos-based DEX Osmosis raises $21M in from a consortium of investors

Published at: Oct. 27, 2021

Osmosis, a decentralized exchange, or DEX, on the Cosmos blockchain, raised $21 million dollars in a token sale led by VC fund Paradigm along with a consortium of investors including Robot Ventures, Nascent, Ethereal, and Figment.

Osmosis allows developers to build customized Automated Market Makers, or AMMs, with sovereign liquidity pools. The DEX uses a native token called OSMO for governance and staking, and currently contains a total of $544 Million.

The project alleges to provide superfluid staking and instant block confirmation. Superfluid staking lets liquidity holders stake their LP tokens to earn pro rata staking rewards in OSMO. This gives token holders the ability to compound staking and liquidity yields while keeping the network secure. Instant block confirmations create Miner-Extractable-Value, or MEV resistance, which keeps traders from cherry-picking transactions on the network.

Paradigm, an investment firm known for its focus on DEX platforms, brings Osmosis into its DEX portfolio alongside Maker, Synthetic, Uniswap, Optimism, FTX, Coinbase, and BlockFi. The company’s stake in Osmosis is its first investment into the Cosmos ecosystem. All of its other holdings have been in Ethereum-based DEX platforms.

"Osmosis is our first AMM investment outside of the Ethereum ecosystem. The Osmosis contributors are a world-class team of engineers, product innovators, and operators bringing the right product to market at exactly the right time," stated Charlie Noyes, investment partner at Paradigm:

"The launch of IBC, Cosmos' cross-chain interoperability protocol, kicked off a Cambrian explosion of developer activity and experimentation. Osmosis is the natural center of gravity for liquidity in Cosmos' emerging Defi ecosystem."

The platform’s successful fundraise follows a rise in traffic growth that has occurred on the Cosmos network since the launch of its new Inter Blockchain Communication Protocol in March. The new protocol allows for digital assets to be transferred between chains in the network. In the last month, Osmosis has had the largest number of token transfers through the IBC protocol in the last month.

The main design concept behind the Cosmos blockchain was to create an “Internet of Blockchains,” according to the project’s whitepaper. The Cosmos Network is made up of its main chain called the Cosmos Hub which is the backbone to a network of decentralized, interconnected blockchains which includes the Binance Smart Chain.

Tags
Technology
Blockchain
Cryptocurrency Exchange
Defi
Dex
Related Posts
Decentralized exchanges aren’t ready for derivatives
If the words “derivatives trading” conjures up images of men in suits with disheveled white sleeves rolled up to the elbows and exacerbated expressions on their faces — like something out of The Big Short — then the word decentralized exchanges (DEXs) must conjure up, well, nothing. There are no offices, no floor traders waving papers and certainly no men in suits. DEXs are managed automatically or semi-automatically with the involvement of platform participants in the process of making mission-critical decisions. DEXs are a bulb of a system that is sprouting groundbreaking opportunities for many, but they are not yet …
Technology / Nov. 20, 2021
Supply chain tokens see triple-digit gains as the global economy recovers
Over the last few weeks, blockchain projects focused on supply chains and logistics have seen tremendous growth as the coronavirus-induced economic gridlock begins to loosen and future concerns related to the global pandemic subside. Three logistics projects that have benefited from the improving economic outlook are OriginTrail, Waltonchain and Wabi. Since early February, each has seen its token price increase by up to 300%. TRAC/USD OriginTrail is a self-described “ecosystem dedicated to making global supply chains work together by enabling a universal, collaborative and trusted data exchange.” The project was established in 2011 with the goal of providing enterprise users …
Technology / March 15, 2021
First steps: Basic tips for getting started investing in DeFi
Decentralized finance (DeFi) protocols have diversified investment opportunities in the crypto industry by facilitating novel and innovative passive income generation schemes. Delving a bit into how they work, DeFi systems are based on blockchain technology and run on programmable chains such as the BNB Chain and the Ethereum Network. The chains use decentralized peer-to-peer (P2P) finance architectures to cut out the middleman and enable lending, borrowing and liquidity provision. This leads to higher interest rates compared to those provided by regulated financial institutions such as banks. For perspective, many regulated banks provide interest rates of less than one percent per …
Decentralization / April 14, 2022
1inch seeks to optimize gas costs with its new v5 router
According to 1inch, users' gas costs for swaps will be at least 10% lower than its previous offerings in the DEX segment, thereby, making swapping activity on the Ethereum network more profitable for its users. In the Router v5, 1inch estimated that swaps will be approximately 5% more gas efficient than in the previous version, and 10% more gas efficient, compared to the second best performing player in the DEX segment. New features and improvements made to the Router v5 from previous routers include; a new interaction logic, pre-/post-interactions, and an improved smart contract error processing system. The new edition …
Technology / Nov. 15, 2022
A CEX-like DEX: an Interview with Polkadex CEO Gautham J
DeFi is rife with great ideas capable of rebalancing financial power dynamics. However, so far, these ideas have proven hard to implement in sustainable and convenient ways. Take the DEX, or decentralized exchange — this is a cornerstone of DeFi and a place where users are able to trade with each other without sacrificing control over their funds or having to pay exorbitant fees. On paper, it sounds ideal. But when you look at the major DEXes, they are not convenient. DEXes have become synonymous with high transaction fees, long wait times, low network interoperability and manipulation issues. Enter Polkadex. …
Blockchain / Nov. 17, 2022