• Osmosis DEX Raises $21 Million Through Token Sale

  • Paradigm Ventures led a $21 million investment round in Osmosis, a Cosmos-based DEX. Osmosis is the Cosmos blockchain’s largest DEX.

    Token Sale for Paradigm Leads DEX

    Osmosis, a decentralized exchange (DEX) and automated market maker (AMM), has announced the successful completion of a private token sale for $21 million. Paradigm Ventures led the token sale, with participation from Robot Ventures, Nascent, Ethereal, and Figment. Terraform Labs co-founder Do Kwon also participated in the token sale.

    Osmosis, which debuted in June 2021, has quickly grown to become the largest DEX on Cosmos—a Layer 1 blockchain that supports $126.72 billion in crypto assets across a variety of decentralized applications. Only four months after its launch, its liquidity pools contain approximately $544 million in TVL.

    Osmosis, at its core, is an application-specific chain on Cosmos that hosts liquidity pools for decentralized trading. The OSMO token, which is used for network staking and governance, protects it.

    Paradigm’s first investment in a Cosmos project is Osmosis. Previously, the venture capital fund invested in Ethereum-based projects such as Maker, Synthetic, Uniswap, Optimism, dYdX, and leading centralized exchanges such as FTX, Coinbase, and BlockFi.

    Charlie Noyes, a Paradigm investment partner, described the project as “the natural center of gravity for liquidity in Cosmos’ emerging DeFi ecosystem.”

    Concerning the investment, Noyes added:

    “Our first AMM investment outside of the Ethereum ecosystem is Osmosis.” The Osmosis contributors are a world-class team of engineers, product innovators, and operators dedicated to bringing the right product to market at the right time.”

    Osmosis has benefited from the Inter-Blockchain Communication Protocol (IBC), which was launched earlier this year as an interoperability protocol for relaying messages between different Cosmos chains. The team now claims to be in charge of 42 percent of all IBC transactions in the Cosmos ecosystem.

    As more chains adopt the IBC protocol, the Osmosis team appears poised to extend its lead as a liquidity gateway on Cosmos. Osmosis Foundation Director Josh Lee expressed excitement about “providing liquidity to the rapidly expanding Cosmos ecosystem.”

    The token sale will be followed by the launch of “Superfluid Staking,” a type of liquid staking in which users can add funds to liquidity pools on Osmosis and stake their LP tokens with network validators, according to the Osmosis team. This allows users to earn a portion of all swap fees as well as staking rewards.

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