Uniswap lost 60% of its liquidity …


Hayden Adams: Uniswap – An Automated Decentralized Exchange for Ethereum (#292)

Uniswap lost 60% liquidity ...

Uniswap lost 60% of liquidity, but remains the leader in terms of trading volumes

  • Liquidity on the Uniswap platform sank 60%.

  • The project does not plan to renew the UNI liquidity mining program.

  • Uniswap Trade Volumes Continue To Be Highest in DeFi.

International consortium of news organizations developing transparency standards.

Despite massive liquidity drain from DEX Uniswap, its trading volumes continue to be surprisingly high.

While the Uniswap platform was recently considered the world’s largest decentralized exchange (DEX), it is now losing ground in the DeFi segment amid a continuing outflow of collateral. However, Uniswap trading volumes remain high.

Closing the season

Uniswap lost 60% of its liquidity ...

As the BeInCrypto editorial staff said earlier, on November 17, Uniswap ended the program for extracting liquidity and issuing rewards for its provision. This closing of the “farming season” led to a predictable massive outflow of liquidity from the platform. In just 10 days, she lost about 60% of all collateral.

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Community members initiated a vote with a proposal to extend the program under certain conditions. Voting lasted until November 19, 92 addresses took part in it. As a result, 68 votes were received for the extension of the program and 21 against. In UNI terms, the votes were even more significant – as 97.18% (16.8 million UNI) and 2.81% (488,000 UNI), respectively.

However, despite the results obtained, no decision was made. The situation with the discontinued liquidity mining remains the same, although the Uniswap project community tried to call another conference.

Everything is so bad?

By mid-November, Uniswap had accumulated over $ 3 billion in assets on its platform, making it the largest DeFi protocol on the planet by this measure. At the moment, this figure has dropped to $ 1.2 billion after an outflow of about 60% of funds from the platform. As a result, now Uniswap has moved to the fifth line of the rating.

The Token Terminal financial statistics service decided to study in more detail the situation with the total value of all assets blocked in the protocol (TVL). He also decided to take into account the indicator of the exchange’s trading volumes in order to get a more complete picture of the current situation on the exchange..

1 / @ UniswapProtocol’s token incentive program ended on the 17th of November, which led to a drop (~ 50%) in the total value locked (TVL) in Uniswap.

We Uniswap’s TVL (liquidity) and GMV (trading volume) data to better understand the true compared business impact

Uniswap lost 60% of its liquidity ...

– Token Terminal (@tokenterminal) November 25, 2020

According to the resource, trading volumes do not show obvious correlation with TVL dynamics or liquidity indicator included in trading pools. Collateral helps to reduce slippage (the difference between the price specified in the order and the price of its execution), but it is not a reliable indicator of the actual performance of the DEX, analysts say..

“The fall in TVL did not affect the total volume of goods turnover (GMV) on Uniswap over the same period,” he concluded..

Over the past 30 days, the total volume of GMV on the exchange amounted to about $ 10 billion. In comparison, its competitor SushiSwap over the same period boasts a result of $ 1.4 billion. Thus, judging by the trading volumes, Uniswap continues to be the king among decentralized exchanges, despite on a powerful outflow of liquidity.


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