A week or two ago, Sushiswap competed for a large amount of liquidity and transaction volume from Uniswap through a series of measures. The total lock-up value of the latter fell from 1.72 billion U.S. dollars to 518 million U.S. dollars, but Uniswap’s creative token distribution mechanism quickly reversed this. The situation, and promoted DeFi’s on-chain lock-up value also exceeded 9 billion US dollars.
The question worth pondering more than Uniswap itself is that with the launch of mainstream DeFi project tokens and the lack of new high-quality project assets, will this round of DeFi market carnival come to an end? Is the UNI liquidity mining activity the last DeFi carnival this year?
After weeks of pursuit by Sushiswap, the veteran DEX project Uniswap finally used its killer trick on September 17th-officially released its protocol token UNI and the corresponding liquidity mining mechanism, and with its unique design, it caused the entire DeFi market Got a huge momentum.
Compared with other projects that launched liquid mining, Uniswap did not adopt the popular non-pre-mining and non-private placement mechanism, but its innovation is that it not only formulated a mining plan for future participants, but also developed a past-oriented mining plan. The token distribution plan for users who provide liquidity for Uniswap. Nearly 50,000 users who have participated in Uniswap smart contract transactions in the past few years can get 400 UNIs, which is equivalent to about $2,000 at the market price tonight.
At a time when the prices of most DeFi projects have fallen sharply and investors have suffered heavy losses, Uniswap’s almost “spending money” behavior has won the unanimous appreciation and excitement of almost all industry users, and is known as one of the most “conscientious” projects. . At the same time, this move undoubtedly demonstrates Uniswap’s ambition and meticulousness as an established DeFi project.
Most DeFi projects launch liquidity mining for future participants, motivate more participants through huge benefits, in order to build user stickiness and obtain more beautiful data, but from the actual situation, many DeFi projects The main participants are all arbitrageurs based on high rewards. The actual borrowing and transaction needs are quite limited. If the mining plan with high rewards ends, its user retention and stickiness are not optimistic.
Uniswap’s approach is obviously more pragmatic. While trying to motivate more participants through high rewards, it also provides large-scale rewards to users who used it based on actual use needs instead of seeking arbitrage, and it is evenly distributed regardless of the actual contribution. It has reversed the game mechanism of “the rich get richer” in the past and is more friendly to the majority of ordinary participants. This method has an extremely significant effect on stabilizing its actual user group and enhancing its industry reputation. It can be called a textbook-style token distribution The mechanism is bound to have a profound impact on the industry.
At the same time, Uniswap’s move has also been highly recognized by many parties in the industry. Kane Warwick, the founder of the well-known DeFi project Synthetix, called the move a “Galaxy brain move” and added that it will be “the best generation we have ever seen.” Currency distribution method”. A series of historical data and records were also born: the famous Ethereum browser Etherscan website traffic reached its highest peak since its launch, the famous exchange Coinbase launched its trading pair on the first day of token issuance for the first time, and the daily transaction volume and procedures of Ethereum The total amount of fees has reached a record high…
Prior to this, due to the liquidity mining and migration activities of Sushiswap, Uniswap’s total lock-up value (TVL) during the period from September 7 to 9 fell from US$1.72 billion to US$518 million, and a large amount of liquidity and transaction volume were Competition for Sushiswap, the leading position of DEX is greatly threatened. With this token issuance activity, Uniswap quickly reversed the market pattern. The total lock-up value exceeded US$1.3 billion on September 18. The lock-up value on the DeFi chain also exceeded US$9 billion again, while the lock-up volume of Sushiswap dropped. To 530 million US dollars.
It is foreseeable that Uniswap’s liquidity mining activities will continue to receive the support of a large number of users, and even promote its lock-up volume to rank first in DeFi projects, and the DEX market structure will be further clarified.
However, outside of the DEX market, Uniswap’s currency issuance has a higher industry significance. Since then, the tokens of almost all major projects in the DeFi market have been officially issued. At the same time, the forefront projects in various DeFi segments have formed a relatively stable situation after many months of market competition. Few reliable new projects have emerged and initiated. Strong challenge.
In the climax of DeFi in July and August, new projects will be launched almost every few days and cause periodic market turmoil. These new assets are one of the most important forces driving the rise of the entire DeFi market, but this drive is now The power has almost disappeared, and it is even further counteracting public confidence in the DeFi market.
Although TRON, EOS, Bytom, NEO and other second- and third-tier public chains are trying to open up the DeFi market and push new projects, from the perspective of market reaction and currency price trends, almost none of them can stabilize and form market competitiveness , Mostly just to give the community users an explanation.
Today, as an established DeFi project, Uniswap can barely take over and stabilize the market and maintain the confidence of users to participate in DeFi mining, but where is the next Uniswap project? If there is no project to take over, how will the market change? These are questions that all DeFi users need to think about.
From the perspective of the secondary market, the prices of most DeFi concept currencies have fallen by more than half from a relatively high point. Recently, they have rebounded slightly but are unsustainable. Combined with the previously mentioned lack of emerging high-quality projects, various signs mean DeFi this year. The market has entered a stage of development. The secondary market price is squeezing the bubble and returning to rationality, and new projects in the primary market are difficult to win the favor of users, especially those Fork codes that release tokens to users in the name of liquid mining , But the business lacks innovative projects.
And those DeFi projects that form relatively stable users will also usher in a time window, deepen the business model to further expand their own moat, and convert short-term users attracted based on profit stimuli into actual users with long-term stickiness. With this threshold, the business logic of the DeFi project can be truly verified.
At the same time, new technical routes and models also require more time to brew and develop. More technological breakthroughs in the underlying public chain will also inject more vitality and opportunities into the DeFi market, and jointly accumulate energy for the next technology and market explosion of the DeFi market. .
If nothing happens, the UNI liquidity mining activity is likely to be the last carnival of the DeFi market this year. This does not mean that the DeFi market will quickly collapse, but the cyclical downward channel of the DeFi market has already opened and entered the next cycle.
