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.