Victor Ugochukwu · Dec 14, 2020 . 5min read
Uniswap: DEX Champion, Rolling Casino
Uniswap, the DEX Unicorn registered $183,404,876 out of the $284,461,162 DEX volume of the last 24 hours commanding more than 50% of the rolling DEX volume
By Victor Ugochukwu · Aug 17, 2020 . 6min read
After the strangulation of DEXes like Etherdeltha, and the poor outing of others such as IDEX, Forkdelta, who would have thought the DEX industry still had a chance?
Literally, the Unicorn is the brand icon for Uniswap, which has proven to become the DEX champion and has also started challenging even some of the top centralized exchanges.
For starters, Uniswap, the DEX Unicorn registered $183,404,876 out of the $284,461,162 DEX volume of the last 24 hours. Additionally, $1,487,302,197 of the $2,692,851,306 volume of the previous was all conducted on Uniswap.
Clearly, Uniswap commands more than 50% of the rolling DEX volume. However, this growth is primarily fuelled by the permissionless nature of of the exchange which allows anyone to list tokens as well as a swap at the convenience of an intuitive interface.
Unlike its predecessor DEX, Uniswap doesn’t need to match a seller with a buyer as a conventional exchange order book does. The protocol allows users to trustlessly swap ERC20 tokens through pools. Users then trade against these liquidity pools. Anyone can swap tokens, add tokens to a pool to earn fees, or list a token on Uniswap. The functionality where users quickly add tokens into any pool within the protocol is perhaps its most revolutionary function.
Uniswap’s permissionless nature also makes it a thriving place for scam tokens.
However, Uniswap DEX permissionless nature which allows anyone to add tokens easily has led to it becoming the next rolling casino for anyone. Moreover, that doesn’t exempt scammers who typically pump and dump.
Scam tokens are becoming commonplace in the Uniswap DEX. People now list entirely new tokens with the sinister motive of attracting enough liquidity before dumping. Popular DeFi platforms have their tokens cloned and listed on Uniswap.
Even DeFi platforms like Curve, dYdX have had to issue a warning to those who may fall prey to scam tokens
In fact, even Uniswap isn’t left out from the scam token tirades. As the tweet below shows, scammers even listed a scam Uniswap Community token on Uniswap itself.
Although there are no official statistics on the rate at which these scams tokens proliferate, information from unverified sources suggests that up to 80 new scam tokens get listed daily on Uniswap.
This perhaps contributes to one of the reasons many dismiss the incredible growth recorded in DeFi as nothing other than a bubble. And like all bubbles, they expect that this will pop sooner.
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