from Osmocon Video Part 1: 1:20 - 35:24

-Master List of Osmocon Notes

tl;dr / outline

-post-exploit: returning funds and instituting better safety/security/documentation/testing processes

-highlights of Year 1:

kickstarting the Cosmos ecosystem

$17.6 billion in trade volume

OSMO-denominated liquidity steadily increasing

technical innovations like superfluid staking

possibly the most active, innovative DAO governance in crypto

-future directions:

Bridge Rate Limiting

Volatility Aware AMMs

MEV protection

Rate-Limited Hot Wallet (Keplr) sub-keys

Improved Multi-Sigs and Social Recovery

Trading Engine Improvements

-Stableswap

-Scaling Factor Governors (i.e. stableswap for mostly pegged assets whose peg drifts slowly/predicatably over time, e.g. ATOM/stakATOM)

-Orderbooks built with Concentrated Liquidity

-Stop Orders

-full native Osmosis bridge integrations & single-click cross-chain swaps

-e.g. native ETH to native AVAX (through Osmosis and Axelar)

-single-click on-ramp to Osmosis from credit/debit card (Kado)

-Mars lending/credit

-margin, derivatives, custody

-beyond CEXs

-Privacy

-Threshold encryption for MEV/front-running protection

-Void Protocol for better-than TornadoCash privacy (in v2)

-Interchain Composability (way ahead of other DeFi ecosystems)

-attracting developers to the Osmosis ecosystem

Step 1 was getting CosmWasm enabled

Step 2 is building out the tooling

-Telescope & OsmoJS (Javascript for front-ends to interact with Osmosis and other Cosmos chains)

-Beaker — Osmosis CosmWasm smart contract developer environment (like Hardhat)

-Laika API development platform

-CronCat scheduler

-Andromeda composable smart contract workflows


Osmosis 1-Year Anniversary - Achievements and Future Directions

-thanks to Orbital Command validators for helping pass the original Terra conference to Osmosis

Exploit

Everything is always smooth on Osmosis!

-Osmocon is like Ethereum Devcon 2 - Shanghai attacks

-a simple, stupid bug: 50% extra Gamm when providing 2-asset LP

-should have been caught by tests (wasn’t one of the main upgrades, which were better tested)

-end-to-end testing — hook up frontend

-approx. $5.6m taken by 8ish exploiters

-almost all in contact re: returning funds

-significant amount lost through slippage: ATOM converted to ETH on Sifchain

-plus some non-exploiters just joined pools and accidentally used the bug

-Osmosis strong pref. to avoid breaking immutability

-so no taking funds back / rollback — Foundation will refund out of its funds

-thanks to bug reporters, validators, community leaders & messagers/data analysis, and fund returners

-working on testing the bug patch and measuring how much needs to be returned to which users

-we’ll be rolling out better security processes / QA / more documentation and comments

Highlights of Year 1

-$17.6 billion in trade volume

-over 330,000 accounts that have traded on Osmosis

-liquidity has been up and down (price action)

-redenominated in OSMO terms: up only (except Terra collapse)

-but since Terra, up only again (in OSMO terms)

-kickstarting the Cosmos

-biggest, most well-connected chain

-most IBC txs (4 million), most IBC volume

-8 chains IBC-connected at launch, now 61