By
Steve Muchoki
April 9th, 2024
With Paradigm’s participation in the token sale, the firm will add Osmosis to its DEX portfolio, which includes Maker, Uniswap, and others.
Cosmos blockchain-based decentralized exchange (DEX) Osmosis generated $21 million in a private token sale. Paradigm Ventures led the token sale with more participation from a series of investors. The investors that joined the token sale include Ethereal, Figment, Nascent, and Robot Ventures. Terraform Labs founder, Do Kwon, also participated in the private token sale.
Osmosis has grown to be the largest DEX on the Cosmos blockchain. Developers build customized automated market makers (AMMs) with sovereign liquidity pools on Osmosis. Also, Osmosis has its native token- OSMO- used for governance and staking. Currently, the total value locked (TVL) on Osmosis is $567.74 million.
Currently, OSMO is trading at $5.75, declining 1.61% in the last 24 hours.
Osmosis Joins Paradigm’s DEX Portfolio after Successful Token Sale
This is the first time Paradigm will be investing in the Cosmos ecosystem. Although the venture capital firm focuses on DEX platforms, it has always invested in Ethereum-based DEX projects. Formerly, Paradigm had invested in Uniswap, Maker, Synthetic, Optimism, and dYdX. The firm also invested in centralized exchanges such as Coinbase, BlockFi, and FTX. With Paradigm’s participation in the token sale, the firm will be adding Osmosis to its DEX portfolio.
An investment partner at Paradigm, Charlie Noyes, noted that Paradigm’s participation in the token sale has made Osmosis its “first AMM investment outside of the Ethereum ecosystem.”
The investment partner added:
“The Osmosis contributors are a world-class team of engineers, product innovators, and operators bringing the right product to market at exactly the right time. The launch of IBC, Cosmos’ cross-chain interoperability protocol, kicked off a Cambrian explosion of developer activity and experimentation. Osmosis is the natural center of gravity for liquidity in Cosmos’ emerging DeFi ecosystem.”
The successful funding came after Cosmos saw a rise in traffic following the launch of its inter-Blockchain Communication (IBC) Protocol. In March, the platform unveiled an Inter-Blockchain Communication to allow cross-chain DeFi. The IBC feature has been in development for five years and was eventually voted in through community governance. As 112 million votes supported the activation, 75 million opposed.
Cosmos’ IBC Records Over 1M Transfers
Within six months of the launch of IBC, the protocol recorded over 1 million transfers. Within the period, IBC also onboarded new projects and blockchains into the ecosystem. Terra, THORChain’s Chaosnet, Band, and Kave are notable projects on IBC. Ranked 22nd, Cosmos (ATOM) is down 1.61% to $40.22.
Following the token sale, the Osmosis team said there would be a launch of “Superfluid Staking.” A coming launch is a form of liquid staking, enabling users to add funds to liquidity pools on Osmosis. In addition, users will be able to stake their liquidity pools tokens with network validators. This way, the users will earn staking rewards and a portion of fees from all swaps.