With the leading decentralized exchange, Uniswapthat has discontinued its income-producing incentive program, Competing automated market makers 1inch, SushiSwap, and Bancor buy liquidity providers with targeted rewards.
November 17th, the same day that the Uniswap rewards ended, The cloned automated market maker SushiSwap announced a new incentive system for the same four couples previously suggested by Uniswap.
The total blocked value of Uniswap (TVL) dropped more than $ 1 billion that day in less than 24 hours.. Since posting a record $ 3.07 billion on Nov. 14, Uniswap’s TVL has fallen 57.5% to $ 1.3 billion.
Vice versa, SushiSwap’s TVL is up nearly 160% since November 17thfrom $ 407 million to $ 1.050 million. Now it’s more than 313% higher than a week ago.
SushiSwap wasn’t the only DEX to launch a “vampire” campaign against Uniswap’s liquidity providers.and Bancor launched a cash draw program on November 17th that includes retrospective rewards.
November 18th 1 Zoll started the second stage of its income incentivesAllocation of an additional 1% of your token offering to liquidity providers. In conversation with Cointelegraph, the CEO and co-founder of 1inch, Sergej Kunzsaid:
“At the moment we’re seeing a lot of other projects that will create incentives after Uniswap is over. Confident that our Mooniswap protocol has great potential to be unlocked while attracting additional liquidity, we have decided to announce our new liquidity mining program in order to track Uniswap’s released liquidity. “
Automated market makers include decentralized exchanges without a custodian bank that handle trades with liquidity that users have accumulated in pools. In addition to the offer of liquidity providers Many DEX have tried to attract users by offering yield farming rewards in the form of their native tokens.
The holder of the UNI token and the blockchain-based transmission platform, Audius, submitted a governance proposal for Uniswap resume the exchange’s liquidity withdrawal program on November 17 at approximately half the premiums of the previous program.
The proposal has almost passed its first round of voting. However, it must complete two more voting phases and receive at least 40 million votes for its implementation. Since the decentralization of governance on September 16, Uniswap has not approved any governance proposals.