Uniswap counterattack with DEX pattern
Original title: Uniswap counterattack and DEX pattern
文章来源： 蓝狐笔记
Since the release of The Mobile Mine on June 15 of this year, mine mining has become an important mechanism for the cold start and token allocation of the DeFi project. This is because it has proved in practice that liquidity mining can rapidly expand the scale of business in a short time. In the lending world, however, liquidity mining is a bit far-fetched because part of the demand is not for real borrowing but for the benefits of mining.
DEX fluid mining start-up
After Compound, Balancer introduced its mobile mining, with "mobile mining," or "agro - farming," in DeFi moving into DEX. Liquidity mining in the DEX field has a natural fit because most current DEX USES AMM, an automated market-maker model that allows everyone to become a liquidity provider, giving users an incentive to provide enough liquidity to the pool of trading scrip. With enough liquidity, the trader's slippage will be lower and the trading experience will be better. Balancer succeeded in that. Its liquidity has grown from less than $20m at the start of June to more than $700m today.
Uniswap has been quiet during DeFi's liquid mining frenzy and has been slow to issue money, allowing other DEX to find opportunities.
YFI pushes liquidity mining to the extreme because it has no founder's share and no investor share. It distributes tokens entirely through mining mode and USES tokens as a tool of community governance. This takes DeFi's mining to a whole new level. Subsequently, YAM forks AMPL and USES YFI's mining and distribution mechanism. This inspired the whole DeFi domain.
One of the most remarkable was the birth of SushiSwap. Because it bifurcates Uniswap, which does not yet issue a coin, and USES a mechanism similar to YFI to allocate tokens. At the same time, it subtly designed the Uniswap liquidity pool, that is, it not only bifurcated the Uniswap code and mechanism, but also tried to leverage the liquidity on which it depends.
Despite the ups and downs of SushiSwap in just over two weeks, as dramatic as any Hollywood blockbuster, it ultimately achieved its original goal of leveraging some of Uniswap's liquidity into SushiSwap.
Uniswap counterattack
Uniswap has been slow to issue money, but things have gotten to the point where it has to fight back. If it doesn't, the whole landscape will change.
SushiSwap is not the only swap that sees the opportunity and is rolling out its own swap in an attempt not only to fork Uniswap, but also to poach its liquidity. The image below, posted by Hayden Adams, founder of Uniswap, shows people hunting Uniswap.
(People are hunting unicorns)
In the two weeks since SushiSwap went on the offensive, Uniswap, apparently, has not been idle. It is planning to fight back, issuing its own tokens. And yesterday finally launched their own token mechanism, and the direction of community governance development.
One of the things that impressed Blue Fox's notes about the scrip system it released was that it placed more emphasis on traders and less on liquidity providers in the allocation of scrip to historical contributors. Among them, 4.92% of the total amount of token is allocated to 49,192 historical liquidity providers in proportion, while 10.06% is allocated to 251,534 historical user addresses on average. All the addresses that have called Uniswap V1 and V2 can claim 400 UNI addresses, and even 12,000 addresses that have only submitted failed transactions.
At the price of Blue Fox's notes, each user gets UNI worth $1,340. This means that more than 250,000 users are bound to Uniswap. These users are all UNI token users, and the total number of holders of UNI token is among the highest in the whole encryption field.
In addition, considering that the DeFi domain as a whole is currently over 400,000 users, Uniswap's UNI holders are already about 60% of the DeFi domain. They are the core users and the backbone of the DeFi domain. This gave Uniswap a stronger community base.
Uniswap coin with Uniswap position
Before Sushiswap came out, Uniswap was DEX's number one in terms of liquidity and volume, and Sushiswap at one point surpassed Uniswap in terms of liquidity.
Now Uniswap has issued tokens and is providing liquidity mining for the following pools: USDT/ETH, USDC/ETH, DAI/ETH, and WBTC/ETH. The reason for mining these four pools is that they are the most liquid in the DEX and the most traded. If these four pools are opened and the yield is higher than that of other SWAP, this means that liquidity without any loyalty flows to Uniswap, which results in Uniswap having the greatest liquidity on the most critical liquidity pools and bringing lower slip points to traders.
At the same time, Uniswap still has a lot of long-tail tokens on it, which means Uniswap will continue to solidify its Position as the top DEX, and due to network effects, it will be hard to chase the second. For a long time, Uniswap has a good chance of becoming DEX's top dog if it doesn't have a special killer app.
Does SushiSwap have a chance?
SushiSwap has come under enormous pressure with the successful launch of UNI tokens and the introduction of mobile mining. In particular, the token pool dug on Uniswap is the most liquid pool on Sushiswap. This is the classic counterattack on liquidity.
The community is now so bearish on SushiSwap that there is basically no chance. If you look at it from the point of view of fighting for the top spot, if you look at it from the point of view of changing the DEX pattern, SushiSwap's chances are getting smaller and smaller. Uniswap coin time window, is a variety of Swap encircled Uniswap time window. Now that Uniswap has successfully issued money, the whole DEX pattern is unlikely to change much in the long term.
But SushiSwap is not without a chance. Currently DEX trading fees are high and the trading experience needs to be improved. If the SushiSwap community can iterate and improve faster in terms of transaction costs and transaction experience, it's not impossible for it to gain a place in the DEX space.
First of all, SushiSwap can speed up the adoption of Layer 2 and lay out on other public chains, so as to reduce transaction costs as soon as possible, improve transaction speed, and give users more silky enjoyment.
Second, SushiSwap can speed up the implementation of transaction experiences such as order books and continuously deliver product experiences that cater to the needs of the community.
Finally, in terms of incentive mechanism, how SushiSwap retains liquidity through incentive mechanism is also its top priority. It may even be considered that in times of intense competition, the incentives of liquidity providers can be appropriately increased, with some incentives for traders, rather than sticking to the current incentive mechanism. There may be better ways for the SushiSwap community to dig and discover.
In addition, in a sense, Uniswap's liquid mining can not maintain the highest returns for a long time, there will be an equilibrium. So, even though Uniswap is going to get bigger, it's not going to have a monopoly. This is also the living space of other kinds of Swap.
From this perspective, although Uniswap's position as the top dog will not be shaken for a long time, it is possible for Sushiswap to survive if it can iterate quickly, and if there is a better mechanism, there is also a chance for further development.
Uniswap will not be challenged by another Swap
Micro-innovation based on Uniswap can only obtain relatively small development space in the end, but cannot substantially challenge Uniswap, because no matter what these Swap do, Uniswap can imitate in the end.
The one that will challenge Uniswap must be the new mode DEX, which blue Fox notes doesn't know. But one thing is certain: Uniswap is not resting on its lauches, and a new model could emerge at any moment.
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