Bitcoin

The uniswap boom will end with complaints from September 16-23

The biggest event of the week was definitely the sudden launch of the Uniswap token, UNI, that enriched many DeFi users $ 1,200 minimum each.

Uniswap gave 400 of its tokens to everyone that he would have acted with the protocol even if the interaction had somehow failed. And when I say “anyone” I mean “any wallet” Some people almost certainly have received more than one such multiple wallet permit.

Unfortunately, I wasn’t one of them, and to be honest, I barely used Uniswap anyway. In my treatise on decentralized exchange, I highlighted some of the disadvantages of Uniswap and others who like it. For me it was mostly the cost, the trading fees are high, the gas prices are high, the slippage is high. I’m not saying that Uniswap is bad, it just didn’t meet my needs and had better alternatives.

The uniswap boom will end with complaints from September 16-23
The uniswap boom will end with complaints from September 16-23

Obviously, Uniswap has an incentive of “Profitable agriculture “ soon after, but this one is pretty good. There are no Ponzi pools of UNI rewards for UNI itself, the issuance plan is pretty tame (as are the returns), and the protocol benefits directly from that liquidity.

The pools that are used to manage the UNI are a few pair iterations from Ether to Stablecoin and from ETH to Wrapped Bitcoin. The latter is the one that is receiving the most liquidity so far, which makes sense as it is the pool that is least exposed to volatile losses. This is another major problem facing Uniswap. In the event of sudden price changes, liquidity providers can easily take out less than they originally invested. It’s easy to see how an ETH / BTC pair would have less price volatility.

The incentives allowed Uniswap to break all records for total blocked value again and become remarkably liquid, perhaps more so than many centralized exchanges. For example he Converting USD 100,000 Ether into US Dollars only results in a decrease of 0.06%. That’s low enough that liquidity is no longer a problem with these decentralized exchanges.

Should Uniswap have the most valuable token?

Uniswap seems to have quickly taken the lessons of the SushiSwap debacle into account. Reward the community with a token so they have something to lose when they go to greener pastures.

For a moment, UNI’s market capitalization was comparable to that of SUSHI, its imitator. but the market corrected itself quickly. Now it’s one of the 3 most valuable DeFi protocols again.

Still, it’s a bittersweet story. All experts seem to have expected UNI to reach $ 10, if not more. based on the success of the protocol and relative ratings from other projects.

But that has not happened so far. In fact, the domestic asset lost more than 50% of its all-time high of around $ 8, although it has rebounded somewhat at the time of this bulletin. Some of this might be due the excessive number of free tokens to be absorbed by buyers. But I think the bigger problem is that the token was late.

The market clearly seems to be fluctuating from the festive months. It is a natural thing that cryptocurrency market cycles rarely last longer than a few months. For those who remember, there were some periods of depression and long periods of slump even in 2017.

But there is also the macro context that you have to pay attention to. I hope it’s not controversial to say that the cryptocurrency market has been seriously correlated with stocks and the global economy since the crisis in March. and it seems that these too are falling now.

Therefore, although I agree Uniswap’s token should probably be worth more than most other DeFi governance tokens. The market seems to lack the strength to place it there. With the world moving, it may take some time for the extra boost you need to kick in.

The relaunch of YAM, DeFi and MEME surveys

Yam Finance restarted this week. The project was one of the first food coins to grab attention, but it failed and he fell into a coma. due to a failed division. The project has so far been restarted without major incidents. but it seems that the developers are not satisfied with this and are planning many functions to better manage the mechanics of the base.

Cointelegraph Consulting released a report interviewing more than 50 executives and founders of DeFi projects to collect their ideas about the future of the industry. Among the key ideas Most believe it will take DeFi three to five years to mature. That’s a long time in the crypto world.

Finally, If you thought $ 1,200 free was good business, what about $ 600,000? That was worth a MEME drop of air at a given point in time. The project apparently started out as a satire on productive agriculture but then somehow became a market for “minting” art based on NFTs (non-fungible tokens).

There are some interesting concepts, but in general it all seems to be a continuation of cryptocurrencies doing cryptocurrency things. Something like Dogecoin.

Finance Redefined is the new DeFi newsletter from Cointelegraph that is sent to subscribers every Wednesday.

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