What is Osmosis (OSMO)?

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Osmosis (OSMO)

With the ever-growing popularity of DeFi platforms, Binance has recently listed Osmosis (OSMO) in its Innovation Zone.

Osmosis (OSMO) is a leading decentralised exchange (DEX), AMM (automated money market) and cryptocurrency built on the Cosmos blockchain.

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The Osmosis (OSMO) crypto token is used extensively to stake, vote, and provide liquidity on Osmosis.

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What is Osmosis (OSMO)?

Osmosis (OSMO) is a layer-1 blockchain built on the Cosmos SDK. The blockchain allows users to design and deploy automated market makers (AMMs) by using the blockchain's infrastructure modules and leveraging Osmosis' on-chain governance system.

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Osmosis also hosts its own AMM application, which is quite popular among crypto traders on Cosmos.

An AMM can be described as an application that allows users to trade assets without the intervention of a third party.

AMMs are generally built using smart contracts and are known for automating the entire trading liquidity process by determining the price of crypto assets via a mathematical formula to provide liquidity to the buyer.

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In an AMM protocol, a trader generally trades with another at a price that is generally determined automatically by an AMM protocol.

Osmosis (OSMO) DEX

Osmosis's AMM is a popular DEX protocol which uses smart contracts to determine the prices of various crypto assets and provide liquidity to traders.

The Osmosis AMM is dubbed "unique" as it permits users to create their own liquidity pools. Since Osmosis is built on Cosmos, an agnostic blockchain, users can transact and trade crypto assets across 47 different blockchains.

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Osmosis makes use of self-governing liquidity pools that are not hard-coded and can help users launch their own independent pools on the platform.

Osmosis further allows traders to duplicate existing pools and add their own unique elements to them to make the liquidity pools more exclusive and detailed.

OSMO token

Traders can make use of the OSMO token to vote on governance proposals. The token can also be staked, which helps provide liquidity to traders and buyers.

The OSMO token has responded positively to the news of its recent Binance Innovation Zone listing. At press time, the token is up 30.54% and is trading for $1.68.

Learn about other cryptocurrencies: Quant (QNT), Polygon (MATIC), Qredo Network (QREDO), AllianceBlock (ALBT)