The Power and Convenience of Price Discovery with Osmosis Ecosystem and StreamSwap

1/ Exciting news from the Osmosis Ecosystem!🧪

The Osmosis Ecosystem is thrilled to welcome @StreamSwap_io, a novel protocol for time-based token swaps.

Get ready to witness the power and convenience of finding price discovery for your token on Osmosis.🧵 pic.twitter.com/DatC9b2cPE

— Osmosis 🧪 (@osmosiszone) April 19, 2023

2/ Streamswap was born out of Osmosis's original LBP AMM.

This allowed protocols to use this AMM to distribute tokens and achieve initial price discovery.https://t.co/lfP03xgE4y

— Osmosis 🧪 (@osmosiszone) April 19, 2023

3/ In contrast to the LBP V1 model, @StreamSwap_io has iterated to allow for a simpler and easier approach for users to interact with by:

- Removing the need for collateral
- Separating Primary and Secondary Markets
- Introducing MEV resistance through transactions https://t.co/u26yCOiIru

— Osmosis 🧪 (@osmosiszone) April 19, 2023

4/ Streamswap's mechanism can be summarized into four different parts:

1️⃣ Creating the Stream

- Here, users can lock a fixed number of tokens to be exchanged for the secondary token.

🔒 This locks liquidity until the Stream is finalized. pic.twitter.com/IoFob4tSgO

— Osmosis 🧪 (@osmosiszone) April 19, 2023

5/ 2️⃣ Stream Phase

The "Stream" phase is composed of the bootstrapping phase and the "Streaming Phase". pic.twitter.com/FXlzst6lU1

— Osmosis 🧪 (@osmosiszone) April 19, 2023

6/ During Bootstrapping, users are able to withdraw their deposited liquidity since there is no swapping occurring yet.

However, any tokens deposited will be converted into "shares" which represent the liquidity in the pool.

— Osmosis 🧪 (@osmosiszone) April 19, 2023

7/ During the Stream phase, as the name may indicate, allows for linear swapping to begin to occur between both tokens within the pool.

Users can still withdraw tokens that have not been swapped.

Ultimately, this leads to price discovery of the new token. pic.twitter.com/rVoCMNasg7

— Osmosis 🧪 (@osmosiszone) April 19, 2023

8/ 3️⃣ Price Discovery

As the name suggests, price discovery is calculated when the flow between the tokens is finalized and a price is determined.

Users who participated in the stream are now able to withdraw their new tokens.

— Osmosis 🧪 (@osmosiszone) April 19, 2023