**A** (0:06):
Okay, we're gonna bring up Sonny to the stage to give the keynote speech and then we're gonna kick off. Y' all ready? Give Sonny a round of applause.
**B** (0:29):
All right. Hello, hello, hello, hello, hello. Oh, there we go. Hello everyone. Thank you guys all for making it out here. I am feeling super excited, energetic, you could say, supercharged. Thank you for this amazing day. And I'm gonna take off my helmet because I don't think I can wear this for the entire talk without passing out. But yeah. So thank you all for coming today. I wanted to start off by giving a little bit of a state of the Union of Osmosis, taking a look at where we've come so far. We just passed our two year anniversary and looking at what have we accomplished over the last one year, since the last osmocon, let's say, and then where we're going from here, what is our vision direction for the next one year going forward? So I just want to say, like, you know, this osmocon, it's like, I don't know if anyone remembers last OSMOCON was this like really like last minute put together thing. And like literally from idea to like day of was a two week process. So this time it was a little bit better prepared and we have some more decorations, not just one banner up. So, yeah, really excited to have this happen. And so let's take a look at like, what, you know, last osmocon, like what were some of the themes that we had put forward, Right. What were the things that we wanted to focus on? First of all, one of the biggest things was the trading engine, right? We've spent a lot of time the last year really updating our trading engine. Osmosis launched with these very classical AMMs, similar to Uniswap V2, really closer to Balancer, but, you know, same general idea. And this was really important for how we bootstrap the ecosystem. Our thesis was always, you need these passive classical AMMs to bootstrap new ecosystems. Ecosystems where there's not, you know, people don't exactly know how to do price discovery. You need to just give a way for people to easily pass passively put in assets and just let the AMM figure out the pricing of the system. But here we are two years later. Now IBC is far more developed and the Cosmos ecosystem is far more developed. And so now we're past this point of bootstrapping the ecosystem. We need to move towards more powerful DEX infrastructure. And that really comes from the trading engine. So in the past one year, there's three big, you know, big updates we've made to the trading engine. The first one is stable swaps, right? We built this, you know, stable swap system and we see that okay now we've actually seen a lot more liquidity go into these stable swaps. Interestingly enough, like when we originally started building the stable swap, we used to have a really big stable coin in the ecosystem called Terra doesn't quite exist anymore. And so funny, like we actually don't have that much diversity in stablecoins right now. USDC really does make up the vast bulk of stable stablecoin liquidity on osmosis. Maybe that will continue to change as like tether and other and more decentralized stablecoins come about. But really our stable swaps have gotten like product market fit now with staking derivatives. And I really just do see that as we go forward, staking derivatives are going to become a more core and core part of the defi story within Cosmos. Especially just given, you know, most of the assets in Cosmos have some sort of staking system, staking rewards associated with them. And so, you know, you'll see from, you know, a lot of the projects throughout the day who will be presenting how they incorporate these staking derivatives into their platform. And a lot of this is driven by the liquidity on the osmosis stable swaps. The next big one that we have is this new pool type called CW pools. So CWpools is basically this idea that hey, we've actually generalized the pool interface up until. So if you ever go into the original, I think even today, if you go into the osmosis readme, it talks about how you can build these fully customizable pools. Well, that actually hasn't really existed until the, the V16 upgrade where today now you can actually go implement new types of AMMs and new types of pools as Cosmos contracts. And so, you know, we've been building a couple of them internally like the Transmuter, there's you know, the SUT drop folks have built a bonding curve system as a new type of AMM you can build. You know, we can take existing pool models like the Astroport Curve v2 model, implement that as a new type of AMM. You and so now this really gives the ability for anyone to has a new pool type or has a new use case for their project to basically implement this one standard CW pool interface. And it will work with the entire osmosis training engine. It'll work with the front end. You can LP it into it like you can Any other pool. So that's the second big one. The third big one, obviously, which I think most people know about, is supercharged liquidity. Supercharged liquidity is finally here and it's basically this way of building order books in a defi native way. It's taking the ability for anyone to write their own market making strategies and put them into this system and get far more capital efficiency than we have today. And so I'm going to give a little bit of a demo of the UI that we've built around this. One of the things that, you know, we're really proud of is, you know, no, I don't think any other AMF like Uniswap V3, Orca, all these systems have these very complicated LP interfaces. Our goal here was we wanted to make it as simple as possible for anyone to come in and figure out what's going on, understand what is the actual range that they're put providing liquidity across and really make it so your average user can actually come in and provide liquidity. You can see like where your liquidity bounds would be when it would have Left in a 7 day window, in a 30 day window, in a 1 year window. Find things like your, you know, make it easy to find your roi, your unclaimed rewards, et cetera. And then what we can see with this like sort of capital efficiency is what we can do here is on the OSMO DAI supercharged pool, I'll attempt to make a trade that's worth 10% of the pool's liquidity. And we see it only causes a 1% slippage. Right now if you do the same 10% of the pool liquidity in the classical pool, you'll see that that causes a close to a 20, 20% slippage. So what this has essentially done is we can achieve the same, same level of like trade slippage with far, far, far less liquidity. And this is kind of what enables these whole, this whole new OSMO 2.0 tokenomics where we just don't need the same level of liquidity to provide the same value prop to our users. And with that we can drive down the amount of incentives that we have to, you know, bleed. I have a phone call. Okay. We can drive down the amount of incentives that we need for liquidity incentives and finally start to shift osmosis towards real yield, actually bringing in more revenue, which we'll talk about later, and drive down the cost that we pay for this liquidity. The next big thing that we've been working on, besides the core trading Engine is cross chain swaps. So this is something that we talked about as well last osmocon and now we're finally shipped it with this. You know, our team has built, helped contribute along with a number of others, a number of new upgrades to ibc, things like packet forwarding, middleware, IBC hooks, cross chain swaps. And basically what we've done is now you can execute multi hop transfers over IBC as well as calling arbitrary cosmosm contracts on other chains. And so with this to demo this, we've built this product called CosmosWap which is basically a Dex that will be deployed on any other Cosmos enabled chain. And well, easiest thing to do is probably to show a demo. So this is live on mainnet on Juno right now, where what I can do is I have Juno sitting on the Juno chain and I want to swap it for OSMO on the Juno chain and, and I just have to make a single transaction on the Juno chain. I don't even have to have an account on Osmosis, I don't have to have any money on the Osmosis chain. And it will go ahead and do the entire process for you, sending the Juno to Osmosis, swapping to osmo, sending it back. And it also works for multi hop things as well. So you could take Atom on the Juno chain, swap it for USDC on the Juno chain and it will send it to the Cosmos hub, send it to Osmosis, do the swap, send it to Axelar, send it back to Juno, all in a single transaction. So we built this as a demo app, this like Cosmos Swap and we're going to be deploying it off into as many places as possible. But now this system has been picked up by many others like Skip to build IBC Fun TFM has built this thing called IBC Swap where basically you know, you can take any asset on any Cosmos chain and swap it for any asset on any other Cosmos chain. And so in this example you can see that they're basically swapping stars to Juno once again, all as a single transaction, all flowing through Osmosis liquidity. So now basically in Cosmos we don't really need Dexes on every single chain. We can, you know, you can build whatever application you want on your chain and then just route through Osmosis liquidity to find you the best, the best slippage. Okay, next up, focus on safety. So obviously for those who are here, probably remember last osmocon we had a little bit of an oopsie where we had this bug a lot of our team was not in and out of Osmocon. We were really at the WeWork handling the bug. And basically for the following, like three to four months after Osmocon last year, we kind of actually put a little bit of a pause on feature development and really focused on like revamping our security system. And so we've done a number of things to sort of improve these things. So we worked on this new mutation testing system. This is a model for how you can basically detect how good your test coverage is. We resuscitated the simulator which is this tool to help find bugs. We've started continuous audit process with informal and then we also can do audits with other entities as needed with like autosec for concentrated liquidity with Oak Security for a lot of the Cosmos contracts we write. And then we've also built new modules like the rate limiting module for ibc. So if there is ever a bug, we have like some fail safes in place where it's like, okay, if there's a bug on osmosis, not all the atom just flees off in the course of like a couple of minutes, right? You put these rate limits in place and we also have this downtime detector. So you know, osmosis during that bug last year was down for a couple of days. And this can actually have downstream effects to the other applications built on top. So if you have a leverage trading protocol, downtime can be very dangerous because you know, you need to know when to liquidate. So by building this downtime detector module, we actually allow the contracts built on top of the chain to know how much time has elapsed since the last block and they can adjust their protocol to adjust for that next. We focused a lot on the COSMWASM ecosystem, right? We've helped build either build in house or fund a lot of tooling like Beaker and test tube for CO Cosmos and Tooling Telescope. And the entire cosmology toolkit is like the basis of a lot of the JavaScript tooling. Now Cellotone is this explorer croncat for automation. And the goal of a lot of this CosmosM tooling was to drive towards a lot of this ecosystem growth that we see today. So another thing that people might not know is that the first OSMOCON was actually originally this Terra DAPP Expo Expo that didn't happen for obvious reasons. And one of our goals by sort of taking over that teradap Expo and turning it into osmocon was to see how we could bring in a lot of these Terra projects and help Them find a new home in osmosis. And that's last year was sort of where we really launched the osmosis ecosystem. And you know, why are we built, why did we need to build an ecosystem in the first place? So you know, osmosis, we're trying to build the decks, right? Like to replace centralized exchanges. And you go on your centralized exchange like Binance. Yes, sure you have your spot trading, but you also have a lot more than just that. You have margin trading, you have perks, you have trading bots, you have earned products, you have staking products, you have, you know we need to build launch pads, right? We need to build all of this into a single cohesive experience in the osmosis platform. And so this is, you know, over the course of the last year we have done this now, right? So today on osmosis if you want to go leverage trade, you can do that with Mars or Nolis if you want to trade perps, we have Levana, just launched this week has over $1.5 million of trading volume in just the first couple days. You have OMX coming and building more tranche style perp systems. You have margined building power per similar to Squee on, on top of osmosis you have launchpads now like stream swap. Over six, I think six assets have already been launched via this new stream swap mechanism. You have trading bots like Calc, they let you do DCA weighted out protocol, stop orders, all the, all these sorts of things. Autonomy as well. You have vault protocols now. You have Quasar, Apollo, Elixir, Astroport, all of these building different types of vaults, market making vaults on top of concentrated liquidity. And the beauty of having this all on a single blockchain is you get cool composability, right? You have things like Mars Farm which is using Apollo's vaults, but then adding them into Mars leverage system so you can leverage yield farm with them. And then you have people building new types of assets, novel assets on osmosis today you have, you have ibcx which is this index token of the Cosmos ecosystem. You have cdt which is this new floating peg based stablecoin. You have Zodiac, that's basically taking LP positions and splitting them into their sub components. And you have a lot of new sorts of UX tooling. You have Daodao, which I think is the best multisig in the Cosmos ecosystem. You have ICNs. That makes it so much easier to just, if you ever just send me some money. Sanya97 Osmo, it's that easy, Right? So we've come a long way over the last year. This is what we've built so far. But now the question is, okay, where are we going now? What's the next step for osmosis from here? And so, you know, like I said, our goal here is really to, like, replace your centralized exchanges. Right. I think very few dexs are really attacking it from that perspective. They're usually trying to build a utility for the chain that they're on, but they're not actually capturing the users that are going to centralized exchanges. And so we have to ask ourselves, like, what are the things that centralized exchanges have today that we haven't matched indexes today? And, you know, from my perspective, we really came down to like five core ones right now. Right. So one is access to fiat on ramps. When you, you know, usually people want to come in, buy their first bitcoin or first eth, they do that and then they get stuck. Right. Probably less than 5% of the users actually make it off of Coinbase into actual defi. So we have to figure out how do we capture the user as they're to buy their first bitcoin, buy their first eth before they go onto a centralized exchange at all. We want to build a full featured ux. We want easier onboarding and custody. You know, don't need to. Don't want to have to install a browser extension, save 24 words just to start using a Web2 app. Right. We shouldn't be doing that in defi either. Privacy, and they're not locked to a specific ecosystem. So I want to just go through and show some of these things that we've been working on so far in these realms. So a more powerful front end. You know, we want osmosis today. You have the swap widget. Sure. But we want to do more. How do we keep people engaged and staying on the app? One of the big things people have always asked for is we want more information about the assets that on Osmosis. Where do we go to find out who's behind the project, Find the links about the project, follow the conversation about the project. So with this, and as well as this, you're gonna have an earn page as part of this. So you can say, oh, I have Adam sitting on osmosis. What are the opportunities for me to earn with it? I can go stake it, I can go lend it, I can go put it in AMM pools, I can go put it in these vaults. So you can access all of these different earn opportunities. Through the Osmosis website, we have a staking dashboard. You know, we looked at all the metrics and today the still one of the most common actions that people do on Osmosis is staking. And so building something where you don't get popped out of the experience, but you can stay on the Osmosis UI and do all your staking via this. And we're going to launch it with just OSMO staking. But the idea is this will become the cross Cosmos multi chain staking experience, especially when it comes to mesh security notifications. You know, we want to make it so you can see what, you know, when do you receive assets, when are. Is your contra liquidity position about to go out of range? Are you about to, you know, how is there a portfolio alert? Your portfolio has gone up by more than 10% or it's gone more down by more than 10%. You know, we can give all these alerts and they're going to show up. They're also gonna be available on the app, but also be available via push notification to sms, telegram or email. And so this has been powered by the Notify team. And then finally we're gonna be building a pro trading interface. So you know, with, you know, we have the swap widget, basic market orders, but a lot of people wanna do more than that, right? You wanna be able to place limit orders, you wanna be able to place stop orders. And with Mars integration built in, so you're gonna be able to do leverage trading straight from the interface. And so we want to build this pro trading interface but still keep that, you know, soul of osmosis in it, make sure it's still fun and playful and you know, easily accessible to users. And you know, speaking of like native Mars integration, the other thing that's going to be happening on the front end is just doing far deeper ecosystem integrations. So, you know, we launched the App Store recently today. It's very much just a list of links, right? You come in, when you open it, you connect your wallet, you go to the App Store and you get popped into a brand new tab. You have to reconnect your wallet Sometimes some of these apps don't even have the wallet that you were using on the main site. It feels this very disjoint experience. What we're going to be doing is making it so all of these wallets we're working with like Cosmos Kit and Wallet Connect to basically make it so any app that once you log into the Osmosis website, you can go to any of These apps and they'll open up as an iframe within the Osmosis app. It'll pass through its wallet connection so you don't have to reconnect your wallet and you'll be able to use all of them quickly switch between the many different apps in order to basically make it feel like Osmosis is this dashboard where you access the rest of the ecosystem through. As part of this we'll also have the ecosystem wide notifications. So beyond just the Osmosis dex and chain notifications, you'll also get all these other notifications integrated into the single notification window. You'll know when your Mars liquidation is coming up. You'll know when a new Quasar vault is launching. You'll know when your DCA has finished or your stop order has hit. So you'll get all of these notifications integrated into one place. And then we'll also be building more of the. Eventually, you know, a lot of these things that are in the app store will become more native into the front end directly. So you know, things like calc DCAs, these will be embedded into the UI more natively fiat on ramps. Right. We talked about, I talked about this earlier. This is like the key. And so we're working with Cato to actually build a buy and sell widget within to the osmosis swap widget directly. Same thing with Mars. The next thing we're going to be focused heavily on is accounts account. I'm calling this accounts 2.0 and today you know very much accounts are this like basic private key thing. Where, where do we go from here? So multi wallet support, right? We've already shipped this today. Now you can go start today you can go use Kepler Leap and Cosmos Station wallet with the wallet with Osmosis. But we're going to be expanding that to, you know, you can support many different wallets including ETH based wallets. You know, we've helped fund the Metamask Snaps initiative to basically allow you to use MetaMask with Cosmos chains as well as other different types of EVM wallets as well. But the thing that I'm most excited about when it comes to wallets is smart accounts. This idea that, you know, you shouldn't need a wallet or a private key to make account. You should be able to use things like your OAuth identity from Web2 services or use the inbuilt Mac OS or iOS like secure enclaves to sign things. So eventually you're going to be able to do things like when you want to sign a transaction instead of popping up Metamask or Kepler or sign your ledger, you'll just be able to like sign transactions using your Mac's touch ID Privacy. Right. We have private trading that we're working on. So one of the winners from the Delphi hackathon built this thing called Night Market which basically lets you do fully private trading. So you come here into the account, you can deposit assets into your night market and it will basically construct the zero knowledge proof for you. And, and once you've deposited into the night market, you can basically execute swaps from within the shielded pool and no one can tell who's actually making the trade. So you get fully private spot trading on the osmosis. Dex. Yep, private mempools with threshold decryption finally, you know, spent a long time in the making. ABCI was an idea that our team came up with like over two and a half years ago. And now Vote Extensions is finally starting to land in Comet bft and now with Vote Extensions there, we're gonna be able to start shipping threshold decryption. And then finally, how do we go beyond Cosmos? Right like today, you look at it, a lot of the apps are, a lot of the assets on Osmosis are already non Cosmos native apps assets. How do we do, how do we lean into this some more? Right, so faster bridging from more places be able, you know, we're working with the SQUID team to basically, if you today, if you want to deposit USDC from Ethereum, it'll cost you like $60 in fees, but we want to be able to support you depositing from L2s on Ethereum you can get way cheaper fees. A lot of the capital in the Ethereum ecosystem is moving on to these L2s. We want to make it as easy for them to come into Osmosis from wherever they are in the Ethereum ecosystem. On top of that, we're working on more bridges. So you know, obviously IBC everywhere, the composable team has built an IBC integration to Polkadot, the Polymer team, Union team, they're all building more IBC integrations to the EVM ecosystem and we want to continue to support this. At the same time, we have new bridges coming into the Cosmos ecosystem like Wormhole, who will bring us access to a large range of chains that aren't available anywhere else today, like Solana, Aptos, Sui, near. And so we're gonna be able to. So they'll be giving a talk later today talking about that. We're working with Hyperlane to make help osmosis become the liquidity hub for the Celestia ecosystem. If you wanna learn more about that, you can come to my talk tomorrow at Modular Summit. And we are building tooling to make this multi bridge experience easier. Right? So we've built this thing called transmuter swap, which is basically a stable swap, X plus Y equals K. The most simple stable swap you can imagine, but with rate limits. What that basically means is it'll say that hey, the percentage of one asset in this stable swap can't change by more than 10% in a 24 hour window. And this is to help deal with bridge hacks. And so we can use this for things like say hey, we want wormhole ETH and axelar eth sitting in this stable swap. Anyone can provide liquidity into this. It'll provide no slippage swaps between them, but it protects the LPs in this pool from these sort of bridge hacks. And what's really cool with this, what we can do is basically say hey, the LP share of this stable swap, we can make that be the canonical version of ETH on osmosis. And so now what that does is if all the liquidity for on osmosis the incentives will be driven towards this canonical eth. But you can come in and get this canonical ETH by bridging via axelar or wormhole or polymer or any of these new bridge solutions that are coming about. And finally, anyone who's been, listen to me at Gateway, you know that I'm really into native bitcoin and I do think bitcoin is the way that we help, you know, bring a lot more liquidity and capital into the Cosmos ecosystem, find this new moneyness base asset. And so we're working with the Axelar team to help, you know, contribute to the building of a new native bitcoin bridge that does not just bitcoin but also things like ordinals, BRC20 tokens, lightning support and all this. So you can chat with the Axelar team about that? Yeah, and so I'm going to skip this part, but yeah, so basically these are some of the things that we've been working on. This is the things that we've been working on the last year. Obviously we're going to continue working on these things. You know, still a lot more to go on the trading engine. We're building in native limit order support, building a lot of the UX around contrary liquidity continuously. But as we go forward we're going to continue this is going to be our direction for the next year. So thank you guys all for coming. And, yeah, we have a PO App. Anyone who, you know, if you want the PO App for osmocon. Yeah, check out the agenda. And really excited to just continue to talk with you guys for the rest of the day. And, yeah, let's make Osmosis great.
**A** (28:24):
All right, give it up for Sunny.