The total value of blocked assets on the major decentralized exchange (DEX) Uniswap has decreased by 38% in 24 hours After the completion of the UNI liquidity bonus program on November 17th.
Meanwhile, SushiSwap’s “Vampire” clone has doubled its Total Locked Value (TVL) and is aggressively seeking additional liquidity.
At the end of this issue, Uniswap’s total value has fallen by a total of 43% since reaching an all-time high from $ 3.070 million three days ago. Now stands at $ 1.75 billion and continues to decline.
After the sharp drop in Uniswap’s liquidity, token holders have started the voting process for a new governance proposal The aim is to restore rewards in the form of UNI tokens for liquidity providers.
The new proposal, presented by Cooper Turley from the music streaming platform Audius, halves the number of UNI rewards compared to the previous program. While previously 2.5 million UNI tokens were distributed every month to liquidity providers of the WTBC / ETH, USDC / ETH, USDT / ETH and DAI / ETH consortia by Uniswap, In the new proposal, each consortium would be allocated 1.25 million UNIs a month for two months, for a total of 10 million tokens, which is roughly 4.6% of UNI’s current circulation supply..
The community will first vote in an “instant poll” which must receive 25,000 votes within three days in order to proceed to a second poll. the “consensus review” with twice the required quorum in five days.
Should the consensus check receive 50,000 votes, Audius’ proposal will become a fully fledged “government proposal”. It must get 40 million positive votes to be approved for its application.
The proposal was made public on the same day that its rival DEX SushiSwap unveiled new incentives for providing liquidity to the four pairs that Uniswap is no longer incentivizing.. The new bonus scheme replaces the previous rotating incentive structure on the “Menu of the Week” platform:
2) We remove our “Menu of the Week” (MotW) and reassign the returns to these pairs:
– ETH / USDT Tether Turle
– ETH / USDC circular snail
– ETH / DAI Donald Dai
– ETH / wBTC BitCorn (NEW)
– Sushi Chef (@SushiSwap) November 16, 2020
SushiSwap appears to be the beneficiary of the termination of Uniswap’s initial rewards program;; SushiSwap’s TVL nearly doubled in a week, from $ 260 million to nearly $ 500 million.
SushiSwap received criticism after launching a “vampire mining” attack on Uniswap in early September. This has briefly made SushiSwap the best DEX for liquidity.
However, the dominance of SushiSwap was short-lived at the time. Protocol TVL fell more than 80% in one month from $ 1.43 billion on September 12 to $ 265 millionbefore registering a sideways trend until last week.