Supporting Osmosis as a Validator

Why should we support Osmosis?

Osmosis serves as the leading hub for cross-chain DeFi. Positioned at the heart of Cosmos, an evolving ecosystem of independent Layer 1 blockchains interconnected via the Inter-Blockchain Communication (IBC) protocol, Osmosis serves as the central point for accessing a diverse array of appchains, acting as the gateway to the broader interchain network. With IBC’s rapid expansion, connecting over 50 blockchains and many more in the pipeline, including the dYdX chain, alongside ongoing efforts to enable IBC on platforms like Avalanche, Polkadot, NEAR, and potentially even Ethereum, Osmosis remains ready to embrace new users, developers, and protocols, further strengthening the Internet of Blockchains.

Even now, Osmosis is constantly enhancing its offerings by introducing new applications and functionalities such as stableswap, concentrated liquidity, rate-limiting, in-protocol MEV capture, and more. This ongoing innovation solidifies Osmosis as the only full-service, cross-chain exchange and DeFi hub. It provides a user experience comparable to centralized exchanges (CEX) while retaining the advantages of decentralized finance, including self-custody, trust-minimized transactions, direct on-chain interaction, and privacy.

The largest interchain DEX, but still expanding..

As the decentralized financial landscape continues to expand, and as market participants such as arbitrageurs and liquidity providers gain experience, there’s a growing need for liquidity pools to adapt to changing market conditions. Determining the ideal swap fee for an Automated Market Maker (AMM) trade can be influenced by a range of factors, including block times, slippage, transaction fees, market volatility, and more. There’s no one-size-fits-all solution because the characteristics of blockchain protocols, tokens within the liquidity pool, market conditions, and other variables can all affect the best strategy for liquidity providers and market makers. However, many major AMMs restrict the flexibility of liquidity pool parameters. For instance, Uniswap only permits the creation of two-token pools with an equal ratio and a fixed 0.3% swap fee.

This is where Osmosis steps in. Osmosis provides tools that enable market participants to identify opportunities themselves and make adjustments to various parameters accordingly. Instead of relying on a centrally determined “one-size-fits-all” compromise, Osmosis allows for an optimal balance between fees and liquidity to be achieved through autonomous experimentation and iterations. This expands the potential market for AMMs and bonding curves beyond simple token swaps, empowering developers to iterate on new, customized AMM designs using the existing liquidity pools and modules already operating on the network. In essence, Osmosis will serve as a sandbox for the development of AMMs.

Provalidator will continue support on the Osmosis blockchain, please stay tuned for more of our announcements. Thank you!

About Provalidator

Provalidator is a professional Proof-of-Stake blockchain validator and decentralized infrastructure provider. We offer enterprise-level validation services to more than 30+ blockchain networks, safeguarding over $250 million (as of December 2022) in digital assets through our robust infrastructure. Our team has been operating validator nodes since 2018 starting with the Cosmos Hub, and is currently one of the most prominent validators in the Cosmos ecosystem.

At the heart of our operations is validator service, which are specialized servers or nodes in a blockchain network tasked with proposing, authenticating transactions, and incorporating new blocks into the blockchain. Our dedicated team is on standby around the clock, ensuring swift responses to any validator node concerns. We’ve implemented multi-layered security and monitoring systems to safeguard our infrastructure and prioritize interests of our delegators.