Osmosis

A Cosmos SDK-based proof of stake blockchain, Osmosis is tailored to support automated market maker (AMM) apps, including its decentralized exchange. Differing from traditional order book exchanges, AMMs enable assets to be traded against liquidity pools in a permissionless way. Within this ecosystem, liquidity providers (LPs) are pivotal, depositing tokens into pools. Prices in these pools are set through algorithms, incentivizing users to become LPs by offering a share of transaction fees.