Osmosis, a decentralized exchange, or DEX, on the Cosmos blockchain, raised $ 21 million in a token sale led by VC fund Paradigm along with a consortium of investors that includes Robot Ventures, Nascent, Ethereal and Figment became.
Osmose enables developers to build bespoke automated market makers or AMMs with sovereign pools of liquidity. The DEX uses a native token called OSMO for governance and staking and currently holds a total of $ 544 million.
The project is designed to provide super fluid staking and instant block confirmation. With Superfluid Staking, liquidity holders can use their LP tokens to receive prorated staking rewards in OSMO. This gives token holders the ability to increase staking and liquidity returns while keeping the network secure. Immediate block confirmations create miner extractable value or MEV resistance, which prevents traders from picking out transactions on the network.
Paradigm, an investment firm known for its focus on DEX platforms, is adding Osmosis to its DEX portfolio alongside Maker, Synthetic, Uniswap, Optimism, FTX, Coinbase and BlockFi. The company’s stake in Osmosis marks its first investment in the Cosmos ecosystem. All other holdings were in Ethereum-based DEX platforms.
“Osmosis is our first AMM investment outside of the Ethereum ecosystem. The contributors to Osmosis are a world-class team of engineers, product innovators and operators who bring the right product to market at exactly the right time, ”said Charlie Noyes, investment partner at Paradigma:
“The introduction of IBC, Cosmos’ cross-chain interoperability protocol, has sparked a Cambrian explosion of developer activity and experimentation. Osmosis is the natural focus for liquidity in the emerging defi ecosystem of Cosmos. ”
The platform’s successful fundraising follows the surge in traffic growth since the introduction of the new inter-blockchain communication protocol in March. The new protocol enables the transmission of digital assets between chains in the network. Osmosis had the largest number of token transfers over the IBC protocol in the last month.
According to the project’s whitepaper, the main design concept behind the Cosmos blockchain is an “Internet of Blockchains”. The Cosmos network consists of its main chain, the so-called Cosmos Hub, which is the backbone of a network of decentralized, interconnected blockchains, which also includes the Binance Smart Chain.