DeFi is full of drama. In the DeFi wave of the past few months, hundreds of times and thousands of times the income of farming can be seen everywhere, “farmers” have started the day and night “grabbing for crops” mode, and stories of making a fortune by DeFi in the market continue to circulate. However, the prevalence of imitating the market and the thunderstorms of the project have caused the total lock-up volume, total market value and annualized income of the DeFi agreement to decline.
Just as the “farmers” thought it had entered the slack season, the news that Uniswap issued coins made everyone once again witness the magic of DeFi. “Everything is a hoe, and everyone is a mine.”
Can Uniswap’s issuance plan be able to regain lost ground and regain the DEX throne? At this stage, the liquidity mining model has reached the end of the spectrum. Can Uniswap open up the imagination again?
At the beginning of DeFi’s popularity, Uniswap, Balancer, and Curve were the troika of DEX (decentralized exchange). However, as DeFi gradually expands and develops, more and more DEXs are optimized for the leader Uniswap, and the equivalent of SushiSwap is one of them.
It’s just that no one could have imagined that this DEX, which continues the core design of Uniswap and only increases the token economic incentives, is a blockbuster when it comes out. , And launched three major institutes within one day, becoming the protagonist of the DEX story in one fell swoop.
Suddenly, the call for “Uniswap to issue coins” continued to hear. For Uniswap, its situation is precarious because SushiSwap and other imitators are vying to grab its market share. What’s interesting is that Uniswap seems to be aware of this too. A picture shared by its founder Hayden Adams very vividly suggests that it was hunted as a unicorn.
The Uniswap, which has been talked about for a long time, finally issued coins yesterday. According to the official website, the initial supply of UNI is 1 billion tokens. among them,
As soon as this news came out, UNI was quickly “arranged” for listing by Coinbase, as well as centralized exchanges such as Binance, Huobi, and OKEx within a few hours. At the same time, DEX competitors such as Sushiswap and 1inch are also online. And this situation is unique before. In order to attract users to trade on their own platforms, major exchanges have also adopted various degrees of preferential activities. For example, Huobi has adopted the activity of sending USDT-equivalent point card upon top-up of 400 UNI, while OKEx implements a discount of 0 handling fee.
Under the enthusiasm of the market, Uniswap’s lock-up value has continued to rise, and its liquidity pool has climbed to 1.56 billion US dollars, an increase of 62% compared with the previous 24 hours. At the same time, the price of UNI has also begun to rise sharply, the current price is 5.08 US dollars, a 24-hour increase of 70%.
As we all know, Sushiswap is a DEX project that “duplicates” Uniswap. The core design completely imitates Uniswap, mainly adding SUSHI for liquidity mining, and thus plundering a large amount of liquidity of Unsiwap, making Uniswap feel threatened. No countermeasures are taken. “OKEx Research principal researcher William told PANews.
And Uniswap’s counterattack made it regain a lot of “lost ground.” The Sushiswap equivalent imitators are also hurt by various scandals. Take SushiSwap as an example. Today, SushiSwap is facing the test of life and death. Previously, its founder, Chef Nomi, cashed out 18,000 ETH, multiple security vulnerabilities in smart contracts and other incidents caused the price of SUSHI to continue to plummet, and the amount of locked positions continued to decline. Data from CoinGecko shows that the current price of SUSHI is $1.73, a drop of 65.2% in the past half month.
The Uniswap currency issuance plan came earlier than expected.
In previous conjectures, the outside world agreed that VC will be the biggest winner of eating meat, but Uniswap always brings “surprise”, and it dedicated the hands of UNI this harvest to community members. If this news is enough to make many community members ecstatic, then the airdrop of tokens worth nearly 5 billion yuan (note: calculated at the current price of 5.08 yuan) has shocked both inside and outside the circle. In Uniswap’s airdrop plan, 4.92% of 150 million tokens will be allocated to 49192 early LPs (liquidity providers), 10.06% will be allocated to 250,000 early participating users, and the remaining 0.02% will be allocated to 220 SOCKS (Uniswap official peripheral digital socks) holder. Officials pointed out that every address that has ever called Uniswap V1 or V2 contracts can apply for 400 UNIs, including 12,000 addresses that have failed to call. In other words, regardless of whether the transaction is successful or not, participants can receive nearly 14,000 yuan in benefits, and SOCKS holders can receive up to $5,000 in rewards.
According to Ethercan.io, the address that received the most airdrops this time received 1.15 million UNIs, and the second place received approximately 910,000 UNIs. At the same time, Dune Analytics data shows that as of now,
“Uniswap gave all the 250,000 people who took care of their business a little bit of interest. I tried it on Uniswap with a skeptical attitude, and the result was zero overnight. I didn’t expect to receive 400 UNIs today. Not only did I get back the cost but also got 3000 Yuan profit. The money was originally not earned, but from the wind.” A DeFi player told PANews.
It is worth mentioning that, inspired by the airdrop, the price of SOCKS originally priced at only $12.5 has also soared.
However, the big winners behind this wave of welfare are the deeply involved scientists and big households. In addition to taking away the high income of farming, they also took away the most “wool”. For example, a player who issues counterfeit coins on Uniswap may make much money from the counterfeit coins, but after creating hundreds of wallets, they are sore by UNI airdrops. Another example is someone on Twitter who provides long-term liquidity. Large sex buyers have obtained more than 18,000 UNIs, worth 90,000 US dollars.
Although Uniswap once again seized market share, it also caused congestion in the gas fee that had returned to normal again, and the handling fee was also rising. According to Glassnode data, with the release of UNI, the total income of Ethereum miners set a new record, reaching $938,000 in one hour.
It can be said that this is the most powerful day since Uniswap was born.
The prevailing liquidity mining model once brought the DeFi gluttonous feast to the liquidity mining model, and even became the “standard configuration” of the DeFi protocol. But William believes that liquid mining is like a shot in the heart, helping DeFi achieve unexpected success this summer. The key is that the tokens dug up in the primary market can be sold for cash in the secondary market. The secondary market has now become a “drumming and spreading flowers” game of silly. The reason why everyone is willing to pay a high price regardless of the true value of the DeFi currency is because they expect a bigger fool to spend a higher price Buy it from them. However, too much cardiotonic injection will eventually cause “heart failure”.
Nevertheless, Uniswap still started liquid mining. This morning, Uniswap has launched a two-month initial liquidity mining plan, which will last until 12:00 AM UTC on November 17, 2020. The four liquid mining pools opened by Uniswap are: ETH/USDT, ETH/USDC, ETH/DAI and ETH/WBTC. Each liquid mining pool can get 83,300 UNI rewards per day, and each block Each pool can get 54 UNI rewards, the total prize pool is 500,000 UNI, and these UNIs do not need to be locked.
“In the short term, it will definitely boost Uniswap’s trading volume and liquidity; but in the long run, if you rely too much on UNI’s liquidity mining, it will bring huge side effects:” William told PANews.
At the same time, William believes that the game of “liquid mining” is approaching the focus. Instead of relying on UNI to maintain the prosperity of Uniswap, it is better to pay more attention to the application value of Uniswap itself. Uniswap is a typical representative of the automatic market maker system (AMM), and AMM represents a direction for the future financial transaction system reform; if Uniswap can further promote the innovation and improvement of AMM in the future (such as reducing impermanence losses, etc.), then Uniswap Will usher in greater glory.
In addition, it is worth mentioning that although the concept of community-driven governance is not new, it is being emphasized more and more. Uniswap officially pointed out that the team will continue not to participate in the v2 protocol development, review and other matters. Similarly, in the foreseeable future, team members will not directly participate in governance, although they can delegate voting rights to protocol representatives without trying to influence their voting decisions.
Prior to this, the concept of governance has not been well practiced. For example, Bitcoin’s battle for power arises because of its disagreement. In the DeFi protocol, the DeFi project has done a lot of in-depth discussion and practice on the decentralization of governance. Perhaps, driven by quality projects such as Uniswap, more innovative governance methods will continue to emerge.
In general, though.
