Uniswap Has Lost Close to 57% TVL As Rivals Increase Their Rewards

0
222
Uniswap
Uniswap

As the leading decentralized exchange Uniswap has finally let go of its incentive program for yield-farming, the rival automated market markets like Bancor, 1inch, and SushiSwap have been snapping up the providers of liquidity with rewards that are specifically targeted. On the 17th of November, the automated market maker SushiSwap brought out a new scheme of incentives which registered the same four pairings that had been incentivized earlier by Uniswap. Incidentally, the 17th of November was also the same day that Uniswap ended its rewards. 

What Has Followed Ever Since Uniswap Lost all Its Total Value Locked?

And all it resulted in was the Total Value Locked, or TVL of Uniswap falling by around $1 billion in around 24 hours. Since their record high on the 14th of November with a net of $3.07 billion, the TVL of Uniswap has come down to $1.3 billion- a 57.5% deficit. As reports state, SushiSwap wasn’t just the only company to start a vampire campaign- which mostly targeted the liquidity providers of Uniswap. Bancor, too, unveiled a mining program for liquidity that included several retroactive rewards on the 17th of November. On the 18th of November, 1inch also got out the second stage of their incentives on yield-farming- where they also ended up allocating another 1% to the token supply of its providers of liquidity. Sergej Kunz, the CEO and co-founder of 1inch mentioned that the liquidity that was freed up by Uniswap was actually quite essential for the survival of other DEXs. Since Uniswap had ended, there were quite a lot of companies willing to fill that void. 

Uniswap
Uniswap

What Is the Next Logical Process in this Void Left By Uniswap?

According to the rule, most of the automated market makers usually consist of noncustodial decentralized exchanges that usually settle trades through their liquidity that has been pooled by users. Many DEXs also try bringing in users through their scheme of offering rewards that are yield-farming, through native tokens. Audius, a UNI token holder, and blockchain-powered streaming platform actually submitted a proposal on Uniswap governance, that would allow them to reinstate the liquidity mining program of the exchange- with almost half the rewards that the previous program brought with itself. 

Currently, the proposal has already gone through the first round of voting. But, the catch is to complete close to two more voting stages, along with 40 million votes- so that this can be implemented. Since September 16 brought decentralizing governance, Uniswap has clearly failed to bring about any governance proposals.