Ethereum Uniswap Closes for $ 1.6 Billion in Soars after UNI Launch


In short

  • The total value locked into Uniswap contracts doubled in two days to approximately $ 1.6 billion.
  • The increase was compounded by the distribution of Uniswap using UNI tokens.
  • Clone Exchange’s competitor Sushiwap has seen a 30% drop in TVL over the same day period.

Uniswap is back on top in the world of DeFi.

Highly popular Ethereum-based decentralized exchange, shown Tremendous increase in trade volume in recent months, Has seen a huge increase in the amount of money flowing on its platform just after Launching your own governance token, UNI.

Previously, up and coming decentralized finance protocols such as Avey and Curve Finance had ignored it from the top of the “total price lock” chart. Dfi pulse, A metric site that tracks the industry. Now, just 48 hours away from the launch of UNI, Uniswap is Almost double The amount of Ethereum is higher than the previous day. This figure is now equivalent to about $ 1.6 billion ETH.

Total value lock (TVL) is a metric commonly used to compare the relative popularity of different DEFI protocols with greater value locking, with the DIFY community focusing on a given amount of time is. Defy is a catch-all term used to describe an emerging set of decentralized applications built on blockchains such as Ethereum. DeFi lets users take loans using digital asset holdings as collateral and earn interest and other rewards by locking up cryptocurrencies in smart contracts that facilitate trade between various contracts and other financial functions.

Just two days ago, TVL grossed less than $ 750 million on Uniswal. This is more than double since, the likelihood of being motivated by the introduction of a liquidity incentive increases, allowing users to obtain UNI tokens in exchange for providing them. Liquidity For designated pools on decentralized exchange. The run-up back to the top of TVL charts is evidence that while Sushiwap like copycat Can clone protocols and offer their own reward schemes, with established brand recognition, first-mover advantage and, perhaps most importantly, little choice for a group of loyal users.

An increasing number of DeFi projects have issued governance tokens in the last few months Crypto loan platform compound And Token Swap and Indexing Protocol Balancer. Governance tokens are a key component of decentralized or distributed governance, where a community of users and supporters of a given blockchain-based application uses the token to vote on the project’s direction and decisions, including adding new features or funds. For community grants. Additional Research and Development.

Governance tokens can be traded on the open market, and are often priced based on the earnings of the protocol being regulated (in the case of Uniswap, through trading fees).

The distribution of governance tokens has taken a variety of forms, with the most recent being the UNI release of UNISAP. The tokens in that release were initially distributed to any wallet address of more than $ 1,200 that negotiated with Uniswap on September 1 (now worth more than $ 2,500), with additional rewards for those users , Who once provided digital assets that facilitate tapping between various tokens, was the platform.

The release also included an allocation of 40% of the tokens of the UNI regime for investors, advisors and team members who helped create the Uniswap set to be set for more than four years. The remaining 60% governance tokens will be distributed to liquidity providers over the same four-year period.

SushiSwap, A clone of Uniswap made possible by the public nature of smart contracts on the Ethereum blockchain, increased lock value to more than $ 1.4 billion after issuing a governance token scheme of its own, aimed at increasing trading volume and user legitimacy. Was away from Uniswap and on his platform. At the time, Uniswap had not yet issued its own governance token or liquidity mining award. Following the UNI launch on Tuesday, the closing price in SushiSwap’s counterfeit currency fell nearly 30% in just two days. This figure is now less than $ 525 million.

The UNI release of Uniswap has been widely appreciated by the DIFY community that has long waited for the trend of distributed governance to find its way to the world’s most popular decentralized exchange. Now it is up to us to decide what comes next

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.