Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

“Defi has incredible potential,” says Mark Cuban but cautions that much like derivatives, “risk never leaves the system” here as well.

Ethereum is notorious for its extremely high fees when the network activity amps up.

In January, with ETH and DeFi tokens enjoying an uptrend and offering buy the dip opportunities, too much activity is making the platform costly to use. Popular DEX Uniswap, which has long been the biggest gas guzzler, has spent $28.3 million in gas in the last 30 days.

“The high gas costs are a direct result of *huge demand for trading on Uniswap,” said Hayden Adams, the creator of Uniswap, earlier this month when the fees skyrocketed yet again.

“Scaling is a huge problem. It absolutely sucks small transactions are sometimes priced out during volatility.”

But it looks like it’s not only the smaller users that are feeling the brunt of the hefty fees; even the billionaires are complaining. This billionaire, is none other than crypto skeptic Mark Cuban.

Cuban mentioned that gas was always an issue when Haralabos Voulgaris, Head of Quantitative Research at Dallas Mavericks, suggested there being real value in sending money over a decentralized, permissionless network. Cuban feels,

“Except the gas is always an issue. Just the cost of moving crypto to AAVE is crazy expensive, and the number of non crypto options will increase.”

With the Shark Tank investor who finds more worth in bananas and compares crypto trading with the dotcom bubble,  name dropping popular DeFi project, AAVE got the CT excited AAVE 10.31% Aave / USD AAVEUSD $ 140.95
$14.5310.31%
Volume 509.28 m Change $14.53 Open $140.95 Circulating 12.2 m Market Cap 1.72 b
8 s Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited 1 d A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round 1 w Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC
.

“One of the most high-profile billionaires trying out DeFi. I am liking this trend,” noted one such DeFi investor.

However, just because Cuban publicly doesn’t find worth in crypto doesn’t mean he isn’t trying things out, as he responded,

“I don’t think people realize I try to test and use all this stuff and have for years. I still have crypto from the early days of coinbase. I’ve never sold anything.”

As for decentralized finance itself, Cuban says, “DeFi has incredible potential.” Still, according to him, much like derivatives, “risk never leaves the system” as it faces the risk of a dominoes-like collapse. Cuban said on the prospect of Defi fixing the problem of underbanked,

“It’s a long way off for the unbanked. Most deal with cash or lack compute power so they need intermediaries. That’s costly. As DeFi grows away from overcollaterization, it will be interesting to see if access expands or contracts.”

But here, the CT takes over and points out that while “the system is only as strong as its weakest link.” We do, in fact, need better insurance models; the missing point is “unlike tradFi, DeFi is a perfectly transparent system that allows you to measure risk in real time,” said Santiago R Santos, a partner at Parafi Capital.

The DeFi space has grown to over $20 billion in total value locked (TVL) as the DeFi project continues to grow and rise in value. This week, the top US banking regulator actually talked about the opportunities of DeFi and regulators needing to be ready for it.

Read Original/a>
Author: AnTy

SushiSwap Captures Bigger DEX Market Share; Lays Down 2021 Roadmap

While Uniswap lost 40% of its market share since August, Sushiswap gained 1,120% in just over 2 months. Meanwhile, the Sushi token price is fast approaching its ATH as the team shares what’s to come this year.

Decentralized exchange SushiSwap’s native token Sushi has been enjoying an uptrend of 790% since November.

The token, which is still 62% away from its all-time high of $12.5 made on Sept. 1st, started climbing upwards today ahead of the roadmap release as announced by the project lead 0xMaki on Friday.

Sushiswap actually accounts for 24.4% of all DEX volume, up from a mere 2% in late Oct., as per Dune Analytics. Meanwhile, Uniswap’s share has decreased from 70.65% in late Aug. to now 42.6%.

The second-largest DEX recorded a $3.2 billion volume in the last 7 days.

image1

In terms of count of unique addresses that traded, trailing the last 7 days, Sushiswap comes in 3rd with 8,414 number of traders followed by 1inch’s 13,236 and Uniswap’s 98,426.

Much like other metrics, the TVL (total value locked) of the project has also reached $1.7 billion, from merely $239 million in early November.

What’s Ahead?

The team is planning to move to a new domain this year as “we aren’t an AMM anymore moving forward but an OpenOrg part of the Yearn ecosystem,” revealed the roadmap. It will also support IPFS.

The governance transition could either be like the Aragon v2 model or like Synthetix to opt for Council of community members is expected to finish by Q4 of 2021.

DSD, FRAX, and BAO projects are already secured for integration in Q1 2021 besides cross-chain AMM enabled by Rune/Moonbeam and live testing version of Sushiswap on Kusama, MEV integration via ArcherDAO, shared the team.

The plan is to incentivize teams, wallets, dApps & protocols to build with Sushiswap via an emission enabled pool of 0.1x and provide technical support for projects natively integrating Sushiswap.

As per the roadmap, the team ticked off — no lockup so that it can integrate inside Aave-Maker, Keep3r auto-serving of reward, and Wrapped-SLP to be used in various money markets that are being worked on.

The team also introduced Mirin in addition to the Deriswap that comes with franchised pools, double yield, K3PR dynamic yield rebalancing, and integrated 1-Click Za among others.

As for BentoBox, Yearn.Finance creator Andre Cronje introduced with the Sushi-Yearn merger is ready for its soft launch in mid-January. The project has already been audited by Quantstamp & PeckShield but would see another round from Trail of Bits.

When it comes to Minimal Initial Sushi Offering (MISO), a token launchpad, the team is about done with the smart contracts. The v1 of the launchpad will have multiple features; freeze of SLP with vesting for teams, liquidity mining, ICBO, farms, auctions, and crowdsales.

For the layer 2 solution, Sushi will move in sync with the greater Yearn ecosystem. Meanwhile, the Onsen program will be announcing support for mid-tier and lower cap tokens to become accredited to participate in its liquidity mining program.

Read Original/a>
Author: AnTy

Despite Vampire Attack 2.0 from SushiSwap, Uniswap Volume Holds

The liquidity on DEX Uniswap fell sharply, from $3.3 billion to $1.7 billion, as the UNI liquidity mining regards program ended on Monday.

Simultaneously, SushiSwap started incentivizing the same pools as Uniswap right on the day Uniswap’s subsidy ended. With this, SushiSwap liquidity continues to rise, the total value locked in the project also jumping back above $1 billion.

“This feels like (a smaller) vampire attack 2.0, with the difference that Sushiswap has a more distinguished product now and is not just an exact clone of Uniswap anymore,” said Hasu, an independent researcher adding that the real kicker is that “Sushi token holders already capture 1/6 of every taker fee, or 0.05% of all trading volume.”

With a 240% increase in TVL in just three days, SushiSwap became the 6th largest DeFi project while Uniswap lost its dominance.

From over $3 billion in TVL on Nov. 15, it has declined to $1.3 billion and at the 4th spot. With this, Maker has again taken back its dominant position from Uniswap, as per DeFi Pulse.

SpartanBlack, a partner at the crypto fund, the Spartan Group, tweeted, “Yield farmers have no platform loyalty. They go where the yields are….”

image1

Still, the volume on the Uniswap platform is strong, the 7-day volume above $1 billion.

Jeff Dorman of Arca also pointed out, “4 Uniswap pools had more liquidity than needed to facilitate trading, & the excess liquidity left once UNI farming ended. This doesn’t affect volumes. TVL is pointless for Uniswap when there is more capital than needed.”

While LPs are critical to the success of Uniswap, incentivizing market makers isn’t the secret to success, he added. “You need customers too, and Uniswap’s customers are much stickier than the LPs. As long as customers show up, LPs will stay,” Dorman said.

According to him, UNI’s latest move just means the excess unproductive capital is gone.

But even Uniswap community members are not giving up, and a governance vote for continuing farming on the same four asset pairs WBTC/ETH, USDC/ETH, USDT/ETH, and DAI/ETH is proposed. The proposal has to pass a series of governance polls before farming restarts on Dec. 4.

Amidst the focus on Bitcoin and its looming retest of an all-time high, a heated battle for LPs by DeFi based venues is emerging. Recently, Bancor also announced a proposal for BNT Liquidity Mining (LM) — aimed at driving new liquidity to Bancor pools & incentivizing long-term liquidity provision.

Read Original/a>
Author: AnTy

Uniswap (UNI) Farming to End Today, Billions of Dollars to be Released

Launched in the mid of September, the governance token of DEX Uniswap, UNI, is currently down over 10%. In the first week of November, the DeFi token crashed 72% from its all-time high, achieved right after its launch.

Since then, the 26th largest cryptocurrency by market cap of $803 million has doubled in value, trading at $3.56.

Uniswap actually has been the first DeFi project to hit $3 billion in total value locked (TVL), which is currently down at $2.84 billion. Meanwhile, it has 3.1 million ETH, 29.5k BTC, and nearly 190 million DAI locked.

The project, however, maintains its dominance in the market at 21.18%.

Interestingly, in the next few hours, UNI farming on Uniswap Protocol will end with about $1 billion to be released into the market.

As it stands, around $2.3 billion funds are deployed farming the native token, and with Ethereum being the reference token, it means there is currently $1.1 billion ETH locked. Although it remains to be seen how much ETH will actually leave, the portion that chooses to stay will get to enjoy the high fees.

This could still mean some selling pressure for Eth, which is trading just around $462, already “at resistance with a potential double top.”

DeFi-Inflow-of-Money
Source: IntoTheBlock

With this new influx of money flowing into the DeFi sector, it’s to be seen where it will exactly move to.

It is possible this money flow will potentially make its way to SushiSwap. While liquidity has been coming off its recent highs on Uniswap, SushiSwap’s liquidity has increased substantially.

Even SUSHI token is currently enjoying gains of over 17% at $1.36, up 109% month-to-date (MTD) basis compared to Uniswaps’ 62%.

However, both are still cheap when it comes to their valuations based on the price/sales ratio. While Uniswap P/S is around 10x and SushiSwap’s even much lower than that, its competitors like Curve and Balancer trade close to 80x.

In other news, over the weekend, the decentralized exchange Uniswap’s app interface went down due to issues with its gateway provider Cloudflare.

The automated market maker (AMM) built on top of Ethereum took to Twitter to share the outage issues and point out how “now is a good time to remember the benefits of decentralization.”

Unlike a CeFi, which, if goes down, has no way to access it, a “true DeFi on Ethereum there are no central points of failure” and “there is no downtime,” as pointed out by Uniswap creator Hayden Adams.

As can be seen with Uniswap, it is available on other IPFS gateways, can be run locally, easily be forked and re-hosted, and can be traded over Uniswap natively from Dharma and other Ethereum wallets. One can also trade on Uniswap through a wide range of aggregators, a command-line, and over Etherscan.

Read Original/a>
Author: AnTy

Love it or Hate it, UNI Token Stands to Benefit from Uniswap’s Evolution

After releasing the UNI token as part of Uniswap V3, the first update for Uniswap V3 has been made on Github. It might say “trigger a new major release,” but for now, it just seems to be a tease with an IPFS deployment release.

Amidst the growing hype around Uniswap V3, such teases only push the market sentiments towards excitement, which in the DeFi world doesn’t take much to turn into euphoria.

For now, the UNI token is trading at $5.17, still in the green by 6.14%, slowly uptrending towards its ATH of over $8.

Today, with Ethereum Layer 2 solution Ethereum Optimism entering the first phase of its testament launch, Uniswap has announced itself as the early adopter, along with Synthetix and Chainlink.

Additionally, Mask Network rolled out a widget that lets users trade tokens on the biggest decentralized exchange (DEX) by volume, through its Twitter extension. The aim is to make it easier for Web 2 users to migrate to Web 3 apps.

The Question of Decentralization

The top DeFi project, with nearly $2 billion in deposits, is gaining a lot of attention these days thanks to its governance token, which was airdropped to its early adopters.

But not all of its is good; as we reported, there have been questions on the regulatory nature of the UNI token, which is also allocated to team members, advisors, and investors — Uniswap raised $11 million in a Series A round led by Andreessen Horowitz along with USV, Paradigm, Version One, Variant, Parafi Capital, SV Angel, and A.Capital.

At the time, it has been said the resources will be used to build Uniswap V3, which will “dramatically increase the flexibility and capital efficiency of the protocol.”

Besides the legal nature, the latest report from Glassnode also took a stab at the decentralized nature of the token launch, which raised a few questions.

“With the launch of its UNI token, Uniswap has branded itself as “decentralized,” but it still has a long way to go to reach this point. By giving itself a skeleton key to the protocol, Uniswap has (at least in the near term) sacrificed decentralization for the sake of control,” noted Glassnode.

But the crypto data provider also noted that the decision was “almost certainly” made with the protocol’s best interests at heart. Moreover, the control will gradually transition to the community.

“Despite the team’s lack of transparency and somewhat deceptive marketing, the UNI token remains a strong and likely extremely valuable asset,” combined with Uniswap’s impressive growth, V3 deployment in the pipeline, and activation of fee switch that will enable UNI holders to earn a portion of trading fees.

Read Original/a>
Author: AnTy

UNI on the Move, Is Uniswap’s Governance Token Outside the Realm of US Securities Law?

Last week, the largest decentralized exchange (DEX) by trading volume, Uniswap, launched UNI as part of Uniswap V3. 400 UNI tokens were airdropped to every customer who used the platform before Sept.1st, 2020.

While some called this a “groundbreaking” token launch where customers were made the investors, some accused the project of catering to whales. Currently, UNI tokens are being held by more than 50,000 Ethereum addresses/wallets.

The token hit the peak above $8 last week only to lose more than 50% of its value during this week’s retracement. Today, UNI is back on the move, up about 25% at $4.81.

The liquidity on the popular DEX has also hit a new record this past weekend and continues to trade around $2 billion, since crashing following its copycat SushiSwap, sucking the liquidity. The volume on the exchange also sees growth, keeping above $400 million for the most part.

The community is now waiting for Uniswap V3, which will improve capital efficiency and tackle slippage. Project creator Hayden Adams has already raised the expectations of the community saying, it will be “sooo much better than all the things people are hoping it will be” and that Uniswap V3 “destroys every other AMM I’ve seen to date and it’s not even close.”

“We’re full steam ahead on V3, which is going to eat V2’s lunch,” said Haydens a few months back.

Meanwhile, what’s the legal nature?

Right at the genesis, 1 billion UNI tokens were minted, 60% of which will go to community members, 15% is already distributed through the airdrop. 21.51% will go to team members with a four-year vesting period the same as 0.69% to advisors, and the 17.80% share that goes to equity investors — Uniswap raised $11 million in June this year.

Being a governance token means, holders have control over company decisions. But with the launch also came the question if it is a security.

“There was no public solicitation for investment; it was a private offering to a few people,” is what Ethereum co-founder Vitalik Buterin has to say about this.

“If one were to also consider that the Uniswap team is well funded, backed by seasoned VCs who have most likely lent their legal, regulatory, technical and other expertise, one might also take a more careful consideration of the facts and circumstances of this particular offering and why Uni tokens may very well be outside the enforcement framework of U.S. securities laws,” wrote Phil Liu, the Chief Legal Officer at Arca.

Liu, who believes UNI tokens isn’t a security, in his argument that UNI tokens fall outside the US Securities Enforcement Framework, said the team didn’t raise money through a token offering and neither it is controlled by a central entity.

As a matter of fact, Uniswap is an open-source and fork-able network that puts the power directly into the holders’ hands.

Read Original/a>
Author: AnTy

UNI Shorts Get REKT As it Goes Into Price Discovery While Uniswap TVL Hits a Record $2B

It has been only three days since Uniswap launched its governance token UNI.

The free $1,200 crypto stimulus saw 32k accounts selling their 400 UNI instantly, under $5.

This much activity resulted in ETH gas fees skyrocketing to $11.60, yet again and seeing a level of congestion; the Ethereum network has “never” faced before. The good thing is ETH price also spiked to $392 amidst the ETH balance on exchanges reaching the lowest levels so far this year.

But what these sellers didn’t anticipate was the price discovery the token would go on. Yesterday, UNI hit an all-time high above $8.37, and currently, it is trading at $7.13.

“UNI shorts getting rekt. I’m pretty sure there’s a lot of farmers that leverage hedge yields because I do that often, but Jesus this chart looks like someone got rekt, futures were 35% below index and it teleported to the index in a few ticks,” noted trader CL.

These sellers also didn’t take notice of the fact that the decentralized exchange (DEX) handles the same level of volume as the top centralized exchanges such as Coinbase.

“There are VERY few productive assets in crypto space,” said Dovey Wan of Primitive Crypto. “Uniswap Protocol operational efficiency is an order of magnitude higher than Binance and Coinbase.”

Uniswap is currently the dominant force (19.4%) in the DeFi space with a record of $2 billion in TVL, as per DeBank.

This week, the volume on the platform is also gradually growing to over $600 million, which is much more than the likes of Coinbase, Gemini, Poloniex, and Bitfinex.

The token has already been listed on the top cryptocurrency exchanges with futures contracts, providing the opportunity to short or long the crypto asset. DeFi options protocol Opyn also launched the UNI put options.

“DeFi will devour CeFi, piece by piece. It will be very difficult for proprietary, closed platforms to compete with neutral, open infrastructure,” said Jake Chervinksy, a legal counsel at Compound Finance, about the ongoing development in the DeFi space.

Read Original/a>
Author: AnTy

Coinbase Pro to Pass the Rising Network Fees Onto The Customer During Withdrawals

The launch of UNI, the governance token of Uniswap DEX, is having a big impact on the Ethereum network. The good thing is the price of Ether spiked to $393 today and is currently trading above $385. But it also resulted in congesting the network even more as a new all-time high of 1.32 million transactions were recorded on it.

Uniswap mania is making the network unusable as it puts further upward pressure on the already elevated fees, which had miners’ combined revenue set a new record, $938,000 in one hour yesterday. Denis Vinokourov of prime broker Bequant noted,

“As such, while the smaller and less efficient market participants may be struggling, the larger firms that are able to capitalise on inefficiencies and as indicated earlier, miners are making the most of the latest surge.”

In the light of increasing fees, Coinbase Pro also announced that from now, it would “pass along network fees directly to our customers.”

The gas fees that are paid directly to crypto miners to process transactions and secure the network has been historically absorbed by the exchange itself on behalf of its customers.

But “as crypto has begun to gain broader adoption in applications like DeFi, payments and other projects, networks have gotten busier,” which means longer wait times and higher fees “as users compete to get their transactions confirmed faster.”

Although the exchange does not change network fees for crypto transfers from one Coinbase account to another and Coinbase pro account still has no fee, “Coinbase Pro will charge a fee based on our estimate of the network transaction fees that we anticipate paying for each transaction,” it said.

Read Original/a>
Author: AnTy

Uniswap’s Dominates DeFi by Sucking Capital from Other Protocols & Breaks Ethereum

The Uniswap mania is currently leading the market.

The launch of the UNI governance token has its price hitting a new peak at $4.75 after a slow start yesterday. Getting free money propelled token holders to sell UNI, but now that selling pressure has subsidized, the token is rallying.

With these gains, UNI has become the 26th largest cryptocurrency by market cap of $784 million. A researcher from the crypto fund, The Spartan Group notes,

“UNI now has the largest TVL and highest revenue of any DeFi protocol. And that is before one assumes any further leakage from Sushiswap. At 11.6x, it’s P/S (also a proxy for P/E) is among the lowest.”

As we reported, crypto exchanges have been rushing to list the token, with Binance, OKEx, Coinbase, FTX, Kucoin, Poloniex, and others already have done so. Today, Huobi announced the UNI perpetual swaps with up to 75x Leverage.

With these futures listings, that too, with leverage, users can either long or short the asset. Now, it’s to be seen if this will propel the prices higher or push them down.

Meanwhile, the decentralized exchange is seeing a jump of 77% in its TVL (total locked value), which has hit $1.6 billion, approaching the previous high of nearly $2 billion, as per DeBank.

With this, Uniswap is currently dominating the DeFi space, managing $1.56 billion in liquidity while the volume recorded on Thursday was $582 million.

Increased activity on this popular DEX, which is built on Ethereum, also saw the second largest network experiencing a record number of transactions and fees.

This is a great opportunity for Ethereum miners who are raking in nearly a million dollars in just an hour and for large investors, while small market participants struggle.

Read Original/a>
Author: AnTy

SushiSwap Ticking Every Box of 2017 ICO Scam Checklist Says YFI’s Andre Cronje

With a market cap of $233 million, Uniswap clone SushiSwap is climbing the ladder up with its price remaining at $2.33, down 26% in the past week.

Last week, the migration of SushiSwap saw it taking over 80% of liquidity from Uniswap, recording at $1.50 billion.

While since then Uniswap has been recovering, with its liquidity back over $1 billion, after falling to $450 million, and volume around $400 million, SushSwap is seeing a decline, with liquidity going down to $840 million and volume to $170 million.

TVL-SushiSwap

The total amount of deposits (TVL) of Uniswap has grown 70% to $1.2 billion while SushiSwap’s declined by 43% to $800 million, as per DeBank.

“Making DeFi a Joke Again”

As we reported, SushiSwap’s anonymous creator Chef Nomi released an apology and returned all the funds, $14 million worth of ETH, right before this weekend. This has been following the successful migration of the protocol after Chef Nomi handed over the control to FTX CEO Sam Bankman-Fried.

However, the latest issue has come with the new governance proposals that include an airdrop of 2 million SUSHI to liquidity providers and a buyback of tokens with the funds returned by the creator Chef Nomi.

Also, it involves paying a considerable financial incentive to a member of the SushiSwap team. The proposal is to hire 0xMaki as the lead project, head of the core team, and give him a “one-time founders grant,” with 500k SUSHI, worth over a million dollars, upfront and another 500k SUSHI locked over a one-year period.

Also, another 500k SUSHI vested over two-years for his continued work on SushiSwap. 68.24% of votes are currently in favor of this proposal.

CL207-0xMaki
Source: @CL207

“Thanks for making defi a joke again. One step forward, 10 steps back,” said Yearn.Finance creator Andre Cronje in response to SushiSwap’s new developments.

He likened the ongoing DeFi environment with that of the 2017’s ICO. From airdrops, buybacks, insane salaries, large team allocation, team dumping, whitepaper only, and forked geth, everything is getting checked out.

The name has changed but looks like the actions of some remain the same.

Read Original/a>
Author: AnTy