In the DeFi boom (decentralized finance), one name has stood out: Uniswap. This decentralized exchange has Ethereum as its base and leads the industry ranking in terms of total blocked value. Uniswap had US$ 2.38 billion locked in its network on the day this report was written, according to DeFi Pulse.
The figure represents a significant difference to Maker’s US $1.83 billion, the runner-up. However, the value is even more striking when you observe its evolution. On August 25, the total amount blocked on the platform was “mere” US$ 184.39 million.
Power of DeFi: Uniswap dethrones centralized exchange
And, in what some point to as proof that DeFi came to stay in September, the monthly volume traded at Uniswap exceeded that of Coinbase, a centralized exchange. It was the first time this ever happened, according to data from asset research firm The Block, published by its researcher Mika Honkasalo. It was US$15.4 billion traded on Uniswap, versus US$13.6 billion from Coinbase, according to the post.
But what explains all this success? The answer may be in the Uniswap operating model. In it, who wants to trade cryptoassets can also collaborate for a liquidity pool. In this way, it solves a question that usually haunts decentralized exchanges: the lack of liquidity. In order to make its users feel more motivated to collaborate to this pool, Uniswap rewards them with a small percentage of the value they make available.
Uniswap recognizes the importance of the community to maintain the exchange. “Uniswap is now particularly well positioned for community-led growth, development and self-sustainability”, wrote the exchange on its blog.
US$ 1 million in fees in 1 hour
In the same text, she highlights the importance of her governance token, UNI. According to Uniswap, the launch of the token serves the purpose of this self-sustaining growth. This is because it allows “shared community ownership and a dedicated governance system, which will actively guide the protocol towards the future”.
Uniswap launched the token in September, and the success was immediate. The announcement of the UNI listing on the Coinbase platform led to a 300% price hike – although the figures are low. Thus, it went from US$ 1 to US$ 4, according to Webitcoin. On the day this report was written, its price was US$ 3.02.
The success was also reflected in the transaction fees of Ethereum. After the announcement of UNI, these fees reached US$ 1 million in just one hour, a new record for Ethereum, according to the research company Glassnode.
According to Uniswap, in less than two years of existence, more than US$ 20 billion have already been negotiated in the protocol. It has also guaranteed US$ 1 billion in liquidity thanks to deposits of 49 thousand users.
