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Uniswap surpasses SushiSwap, the new version of Sushi enters the battle, how long can DeFi "liquidity mining" last?



The DEX war is intensifying, and the battle between Uniswap and SushiSwap is not over yet. Sashimi, known as the "new Sushi"

Another strong attack. In addition, under the DeFi boom, the competition for traffic has intensified, and major exchanges have also launched lock-up mining models... For a while, the DEX competition escalated, who will be the biggest winner? How long can this DeFi liquidity mining last?

The rise of DEX began with Uniswap.

Uniswap is a decentralized trading protocol based on Ethereum, which can be understood as a decentralized exchange.

First of all, Uniswap does not require registration, has no identity verification and withdrawal restrictions, and allows any user to exchange ERC-20 tokens here. In addition to the "zero threshold", Uniswap does not have the trading depth required by traditional exchanges. All users buy and sell as they go, and there is no such thing as pending orders. Uniswap has set up a very special mechanism to price the currency: X*Y=K. X and Y correspond to the quantities of the two assets respectively, and K is a constant. This pricing mechanism determines which side to buy more, the price of the corresponding currency will rise, thus attracting many "arbitrageurs" to join in.

The price performance of UNI is in one of the best months ever: Jinse Finance reports that the price of UNI is in one of the best months ever, reaching nearly $9 on July 30 and approaching $5 at the beginning of the month, which is the highest since 2021 The best return since a 250% jump in prices in January 2019. Uniswap's gains were largely due to a similar uptrend in the broader cryptocurrency market. In addition, UNI could also benefit from so-called "fee switching" proposals.

Specifically, the community governance system that oversees Uniswap has discussed whether UNI holders should be given the right to earn 0.5% commission from Uniswap’s 3% transaction fee, while rewarding the rest to liquidity providers. [2022/7/31 2:48:31]

In addition, users are charged a 0.3% handling fee for participating in transactions on Uniswap. Unlike centralized exchanges, Uniswap's handling fees are all allocated to liquidity providers.

It can be said that there is no listing fee, no delisting risk, and no restrictions. The design of the pricing mechanism is naturally conducive to FOMO. Users can earn handling fees by providing liquidity. As far as the currency issuer is concerned, it only needs to establish two fund pools to complete the work of "listing currency" in the decentralized world. Uniswap immediately set off a boom.

The trading volume of WAGMI United NFT in the past 24 hours has dropped by more than 70%: Jinse Finance News, according to OpenSea data, the trading volume of WAGMI United NFT in the past 24 hours is 60.62ETH, and the trading volume in 24 hours has dropped by 77.85%. The current floor price is 0.34ETH. The trading volume in the past 24 hours ranked OpenSea 47th.

It was previously reported that the NFT project "WAGMI United" between Adidas and England's Crawley Town Football Club has raised more than 3 million pounds. [2022/7/10 2:03:25]

Subsequently, the new DEX entrants are frantically copying the Uniswap model, and among them, SushiSwap is definitely the "king of copying".

Sushiswap directly replicates the design of Uniswap, and uses the AMM (Automatic Market Maker) mechanism. The difference is that Sushiswap introduces token incentives. A new way of using token pledge mining and issuing platform tokens.

Users criticize Uniswap's decision to remove 100+ tokens from main interface: Many crypto proponents criticize Uniswap Labs for restricting access to things like tokenized stocks and derivative tokens, citing "changing regulatory environment" Uniswap's move. Joey Krug, co-CIO of Pantera Capital and co-founder of Augur, said he likes Uniswap, "but it sets a very bad precedent IMO." Apps add page access, he added, adding that the world needs decentralized interfaces. (Bitcoin News)[2021/7/25 1:14:29]

SUSHI follows the output of Ethereum blocks, and the total amount is unlimited. In the first 100,000 blocks, each block releases 1,000 SUSHI, and each subsequent block releases 100 SUSHI. In addition to its governance function, SUSHI also has the characteristics of a platform currency. The 0.25% handling fee is directly distributed to active-ethexc liquidity miners, and the other 0.05% is used to buy back SUSHI.

Universidad Americana of Paraguay will accept cryptocurrency payments: Jinse Finance reports that Universidad Americana of Paraguay will begin accepting cryptocurrency payments for degree and course fees starting in August. The university has 17,000 students, 60% of whom study online. The university plans to accept BTC, ETH, DASH and XRP as payment methods. [2021/6/24 0:01:30]

In this way, the miners who provide liquidity can not only get a commission share, but also get token rewards. The output of the first mine was as high as 10 times, which quickly attracted a group of "miners". Due to its open source nature, Sushiswap is compatible with the Uniswap token pool, and then performs liquidity migration to directly plunder Uniswap's traffic.

Uniswap founder Hayden Adams said that Sushi is just a whale game played by giant whales, trying to profit by hyping the value created by Uniswap.

At 5:55 on September 10th, Beijing time, the migration of Sushiswap was completed, and more than 60% of the liquidity was quickly plundered from Uniswap, the leading DEX.

However, as of 9 am on the 11th, according to Debank data, Uniswap rewrote history in less than a day. The lock-up ranking of DeFi projects shows that Uniswap currently has a lock-up volume of US$1.1 billion, ranking third, above SushiSwap (US$1 billion).

In the face of competition, SushiSwap co-founder 0xMaki said in an interview that he will continue to optimize the user interface, such as launching a Chinese user interface to attract more users and add many functions that Uniswap does not have. 0xMaki also hopes that SushiSwap can be launched on efficient public chains (such as Polkadot and Solana) in the future.

The battle between Uniswap and Sushiswap is far from over.

Uniswap rewrote history in less than a day, and the increase in locked positions is not unrelated to the cross-chain Sushi-SashimiSwap.

SashimiSwap is a new SushiSwap project developed by aelf. In less than 12 hours after its launch, the locked position exceeded 250 million US dollars. The value locked in SashimiSwap in one day is equivalent to 1.316 million ETH, which is about 470 million US dollars.

The association with Uniswap and Sushiswap is:

It is not a fork of Sushiswap, so the two do not share liquidity;

SashimiSwap provides Uniswap’s liquidity providers with the opportunity to earn SASHIMI tokens. (Liquidity providers of Uniswap can pledge their liquidity pool tokens, namely LP tokens, and start earning SASHIMI tokens at block height 10,833,000 (about 10:00 GMT+8 on September 10).)

SashimiSwap claims that it aims to create a fairer and more transparent DEX platform. Now we are connected to Uniswap, and we will also connect to AESwap in the future.

The rising new projects undoubtedly reveal that the biggest beneficiary of this liquidity mining is none other than DEX. Although Ethereum founder Vitalik pointed out that the current growth trend of DeFi is inherently unsustainable, once the temptation is gone, you can easily see a sharp pullback in yields. However, in the face of rising market sentiment and enthusiasm, it is hard to say how long the DeFi liquidity mining boom will last.

The competition of DEX is in full swing, and CEX naturally cannot sit still in the face of traffic loss.

Since last week, major exchanges have also started to launch the lock-up mining mode. For example, OKEx launched staking mining, Binance launched "staking mining" through its platform currency BNB, and Huobi announced the opening of "locking HT/HPT to participate in DeFi liquidity mining" and so on.

In the face of CEX joining the battle, many voices believe that CEX is extremely urgent to regain lost ground.

In this regard, some industry researchers bluntly said that lock-up mining is actually the previous "lock-up" + "airdrop", which is the exchange's real money, and users will naturally flock to it. Compared with DeFi's "liquidity mining" allowing secondary market users to take over, this approach is more conducive to the healthy development of the market, but how long it can last for DeFi's "liquidity mining" remains to be seen by the market, because DeFi's "liquidity mining" itself is not sustainable.


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