About

Osmosis launched in 2021 as a DeFi-focused appchain (application-specific blockchain) and decentralized exchange (DEX). Osmosis DEX is the first application built on the Osmosis chain and serves as a DeFi Hub for the Cosmos ecosystem.

As an appchain DEX, Osmosis offers control over the full blockchain stack without needing to follow the code of a parent chain. This control has enabled the development of features like Smart Accounts, 1-Click Trading, or on-chain orderbooks.

Protocol revenue is partially distributed to those who stake OSMO, the network’s native token, to a distributed set of validators. The majority of revenue is used to buy back and burn OSMO, resulting in net deflation.

History

Osmosis was founded in January 2021 by Sunny Aggarwal, Dev Ojha and Josh Lee to build a decentralized trading app with a focus on user experience.

Before Osmosis, the co-founders were core developers at Tendermint. They helped design the consensus and interoperability systems that power IBC and Cosmos.

Notable milestones in the project’s history include:

• February 2021 - Osmosis launch announced on Feb. 19, 2021
• February 2022 - Superfluid Staking was implemented with the network’s Carbon Upgrade.
• April 2022 - The Osmosis Grants Program launched.
• March 2023 - ProtoRev mechanism implemented to capture MEV and turn extractive behavior into protocol-owned value.
• June 2023 - OSMO 2.0 Tokenomics introduced, reducing OSMO’s inflation rate.
• July 2023 - Osmosis launched Concentrated Liquidity (also called Supercharged Liquidity), allowing LPs to choose price ranges for liquidity.
• July 2024 - Smart Accounts introduced, enabling 1-Click Trading
• November 2024 - Alloyed Assets (standardized assets) launched to unify liquidity and improve user experience.
• December 2024 - Sunny Aggarwal and Dev Ojha recognized in Forbes 30 Under 30 list (Finance, 2025)

Since launch, Osmosis has processed over $43 billion in total trading volume, generated more than $21 million in protocol revenue, and maintained a base of tens of thousands of monthly active traders.

Beyond its native app, Osmosis hosts an ecosystem of DeFi protocols and third-party integrations, with offerings ranging from managed yield vaults to perpetual derivatives markets.

Osmosis has implemented the ProtoRev mechanism to address issues related to Miner Extractable Value (MEV). Development efforts are ongoing to create privacy-preserving infrastructure that enables users to hold, trade, and earn yield across multiple chains while maintaining privacy and enhancing anonymity.