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What about the blood-sucking Uniswap?



Fortunately, Uniswap has announced that it is developing the V3 version of the protocol. Hayden Adams has publicly stated that the next version will solve all the problems currently encountered by AMM. For a forked project that has only been online for two weeks, the amount of deposited funds has far exceeded that of the original project that has been in operation for two years. Things that are unimaginable in the business world happen naturally in the DeFi world. SushiSwap is the hottest topic in the cryptocurrency world, especially in the DeFi community, and its story is as exciting as a soap opera. With the vampire-style brutal invasion of Uniswap, the protocol with the largest trading volume in the current decentralized exchange (DEX), SushiSwap has become the DEX protocol with the largest total lock-up volume in the industry. For traders, this may be good news: the total locked position is the largest, which means that SushiSwap is more suitable for token trading than Uniswap, because the slippage may be lower. SushiSwap's website style is bad news for Uniswap: liquidity providers are losing, liquidity is losing, and users are losing. Cardano has become the public chain with the third highest NFT transaction volume in the past 30 days, second only to Ethereum and Solana: On October 31, according to a report released by DappRadar, Cardano has become the public chain with the third highest NFT transaction volume. Chain, second only to Ethereum and Solana. Data shows that as of October 27, Cardano's NFT transaction volume within 30 days was 191 million US dollars, second only to Ethereum and Solana. In addition, the number of active-ethexc wallets of DEXMinswap, the main Cardano ecosystem, increased by 19.89% and the transaction volume increased by 15.11% during the same period; the number of active-ethexc wallets of JPGStore, the NFT trading market, increased by 13.66%, and the transaction volume increased by 40% to 11.2 million US dollars. [2022/10/31 12:01:20] The core reason why SushiSwap can surpass Uniswap is that it has put a super patch on Uniswap: adding native tokens to the entire protocol. As for what native tokens can be used for? SushiSwap's solution does not talk about those falsehoods, and directly grants dividend rights, which can more directly capture the overall value of the protocol than Compound or MakerDAO's governance tokens. Interestingly, if the time is turned back a year, the DeFi community will still have a good story because Uniswap did not consider issuing coins: Uniswap and another decentralized trading platform, Bancor, were on the track of "Automated Market Maker AMM". Uniswap and Bancor The biggest difference is that there is no native token, but the transaction fees collected are directly shared with liquidity providers, which reduces the transaction friction caused by adding native tokens. Bitcoin mines cut power due to peak power demand in Texas, USA: According to news on June 10, the high temperature in Texas this week led to a record level of electricity consumption in June, and the state's power grid was raised The test, which has had an impact on some bitcoin mining operations in Texas. It is reported that many bitcoin miners in the state have reached an agreement with the Electric Reliability Council of Texas (ERCOT) to cut off power during peak energy demand. A Bitdeer spokesperson said that it had cut operations on June 7 and would continue to do so while monitoring grid usage and rising temperatures. When electricity costs reach a certain price point, Bitdeer uses automatic software triggers to shut down power. Bitcoin miner Argo said earlier this week that it mined 25% fewer bitcoins in May for various reasons, one of which was power outages due to rising temperatures. Riot also recently said it may scale back operations this week as temperatures rise. (The Block) [2022/6/10 4:16:13] But the situation is completely different now. It is almost certain that Uniswap will launch the protocol native token in the next V3 version update, which may become the most important change in strategy. At present, there is still relatively little public information about Uniswap V3. Uniswap founder Hayden Adams only publicly disclosed that the new version will solve all the problems of AMMs (automatic market makers) currently on the market. Of course, judging from the data, Uniswap still has a great advantage at present. The number of users and transaction volume are far ahead of other DEXs, accounting for half of the total transaction volume of Ethereum DEX. The worst case scenario for Uniswap is that as long as SushiSwap has better liquidity, other liquidity aggregators (such as 1inch) will route more transactions to SushiSwap, reducing user transaction slippage. The three major U.S. stock indexes collectively fell sharply: According to news on May 10, the three major U.S. stock indexes closed down sharply, with the Dow falling 1.99%, the Nasdaq falling 4.29%, and the S&P 500 falling 3.2%. [2022/5/10 3:02:13] But this is good news for the DeFi ecosystem. The overall liquidity of Ethereum DEX has been significantly improved because of SushiSwap, which has increased the amount of locked assets by more than one billion US dollars, and users with trading needs can obtain a trading experience with better liquidity. An unscrupulous replica has brought about changes in the entire ecology, making people dumbfounded, but we must accept this reality. If there is no vampire SushiSwap, Uniswap should be enjoying the happiest time. Uniswap used to be the protocol with the largest amount of locked assets and the largest number of trading users in the Ethereum DEX. Especially since the liquidity mining in the middle of the year and the upsurge of using Uniswap for token issuance, its locked liquidity has grown faster. Growth, from the previous tens of millions of dollars to more than 300 million US dollars. This fully reflects the natural growth rate of managed assets in the Uniswap protocol without token incentives. The growth in the number of users and transaction volume is also in line with this growth rate, and the number of independent addresses per day is about 20,000. Data: The open interest of Bitcoin futures on Kraken reached a 5-year low: On February 13th, Glassnode data showed that the open interest of Bitcoin futures on Kraken had just reached a 5-year low of $2,706,014. The previous 5-year low was $12,150,264 on April 5, 2020. [2022/2/13 9:49:12] The trend of Uniswap’s daily independent addresses in the past three months SushiSwap’s migration of Uniswap’s liquidity can be said to be a “vampire-like attack”, but from another perspective , It can also be said that it virtually "helped" Uniswap preview its potential growth rate if token incentives or liquidity mining were added. The effect is indeed immediate. Compared with the token incentives, Uniswap’s previous natural liquidity growth is not worth mentioning: Uniswap’s locked assets soared to a maximum of nearly 2 billion US dollars within two weeks. Of course, there are also institutions making arrangements. Talks between the Afghan Taliban and the United States in Doha ended: According to news on October 11, representatives of the Afghan Taliban and the US government concluded talks in Doha, the capital of Qatar. During the two-day talks, the two sides discussed bilateral relations, the implementation of the "peace agreement" reached in Doha in February last year, the US ending economic sanctions on Afghanistan, unfreezing the assets of the Afghan central bank, and providing humanitarian assistance to Afghanistan. discuss. After the talks, the US side did not disclose the specific content-ethexc of the talks to the outside world. The Taliban said that the talks were very "positive" and they hoped to push the United States and the international community to recognize the Taliban regime and resume economic aid to Afghanistan. (People's Daily) [2021/10/11 20:19:35] For example, Sam Bankman-Fried, the founder of FTX and Alameda Research, participated in the ecological construction of SushiSwap very early, and finally became one of the nine multi-signature members of the project First, he also frequently disclosed his personal development and thoughts on the future of the SushiSwap project. One of the most likely directions is to explore more with his latest DEX project, Serum. Uniswap data is still bright, but SushiSwap may soon catch up. Although the liquidity of Uniswap has dropped by about 70% since the completion of SushiSwap's liquidity migration, it is currently less than half of the former, but compared with the data that SushiSwap has not yet launched , Uniswap's overall locked-in assets has increased, from the previous US$300 million to US$460 million, an increase of more than 50%. Another aspect is that from the perspective of the number of users, Uniswap is still far ahead, surpassing the sum of all other DEX users. Referring to the number of independent addresses counted by DeBank, after the liquidity migration, the proportion of SushiSwap users is only a fraction of that of Uniswap. But from the perspective of users' trading needs, SushiSwap will have more advantages, after all, the latter has better liquidity. If you refer to the transaction slippage data of the transaction aggregator 1inch to evaluate, for such a slightly large transaction of 10,000 ETH, most of the transactions will be routed to SushiSwap for execution because it has better liquidity. Therefore, with the popularity of user-oriented transaction aggregators like 1inch, protocols that can master more liquidity provider (LP) assets can generate more transactions and gather more users. Of course, the algorithm and mechanism of AMM itself is also a factor that affects liquidity. At present, similar algorithms such as Uniswap, Balancer or SushiSwap have little difference and barriers between each other. Compared with implementation, newly emerging AMM protocols like DODO or Mooniswap that introduce other algorithms have more technical barriers or competitiveness. With its extremely concise market-making algorithm, Uniswap has gained a lot of fans and influence in the community, because for any asset that needs market-making to provide liquidity, Uniswap is the default choice, reducing the role of the original market-maker— — they are replaced by algorithms. Also because the algorithm is extremely concise and open source, the cost of other projects forking it is very low. Referring to MakerDAO, an early DeFi project that is also open source, its entire system is much more complicated, and the number of contracts is several times that of Uniswap, and because there are protocol governance tokens and decentralized autonomous organizations (DAO), the difficulty and cost of forking larger. These directions are at least potential commercial barriers that Uniswap and similar protocol products need to think about. Fortunately, Uniswap has announced that it is developing the V3 version of the agreement. Hayden Adams has publicly stated that the next version will solve all the problems currently encountered by AMM, and will strengthen cooperation with institutional traders to provide products that are more suitable for such users. In addition, the second-tier technology of Ethereum will also be used to improve The performance of transactions and the reduction of gas fees paid by users. Obviously, the founder hopes to distance himself from forked projects in terms of product evolution. The most important of course is the protocol native token. Many people in the community believe that the top priority of Uniswap is to issue native tokens, otherwise the total market value of the entire Uniswap project cannot be reflected, because there are no tradable objects (that is, tokens). If there are regulatory risks in dividend tokens like SushiSwap, then adopting a governance token scheme like Compound or MakerDAO is at least a guaranteed choice. The other two problems that need to be solved are the problems of too much slippage and impermanent loss that AMM has been criticized for. Curve optimizes the problems of slippage and impermanent loss by introducing custom curves and supporting specific assets. DODO tries to solve these two problems by introducing oracles. How the V3 version of Uniswap solves this problem deserves attention. In addition, there is another hot demand is how to achieve user popularity. The biggest obstacle at present is the high transaction cost on the chain. Although the Ethereum Gas fee has been reduced to about 100 in recent days, it is still at a high level, so the introduction of Layer 2 can lower the user threshold and introduce more users with less assets to enter. In the final analysis, for Uniswap, the most important competitiveness is the development and execution capabilities of the team itself. Even if SushiSwap forked Uniswap's code and assets, the team that developed this AMM formula algorithm is still Uniswap. If they can continue to create new functions to meet the needs of both LPs and traders, Uniswap still has a great chance of winning. In the current round, SushiSwap is slightly ahead; next, the good show has just begun.


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