Uniswap’s liquidity and trade volume stands tall even after liquidity mining halts

Even after the protocol's liquidity mining phase comes to an end; the DEX unicorn Uniswap's liquidity and trade volume stands unbeatable.

By · Nov 23, 2020 . 6min read

Uniswap liquidity mining halts news

Uniswap is defying the odds once again even after the protocol’s liquidity mining phase comes to an end; the DEX liquidity and trade volume stands tall.

Hayden Adams, the inventor of the DEX unicorn posted recently on Twitter concerning this.

It’s been one week with NO liquidity mining. @UniswapProtocol still has:
$1.75B in liquidity
$430M 24hr volume

3 months ago before either sushi or uni incentives, it had
$300M liquidity
~$150M daily volume

Pretty cool

Liquidity mining is a concept in DeFi refers to the process of depositing or lending designated token assets with a mining mechanism to provide liquidity for the product’s fund pool. For this, the miner receives a reward which is usually the specific project’s native token. The protocol’s native token may also accrue to the LP (Liquidity Provider or Miner) governance rights.

Uniswap launched its liquidity mining phase with UNI token.

Uniswap released UNI, its governance token back in September announcing that its Liquidity Mining phase would come to an end on November 17th, 2020. As the UNI update stated then

“After 30 days, governance will reach its vesting cliff and Uniswap governance will control all UNI vested to the Uniswap treasury,”

A quick look at Uniswap.info shows Uniswap’s liquidity all-time high at $3.3 billion on November 13. After that date, it’s liquidity volume dropped sharply within the next few days by 45%. Currently, it’s liquidity is has climbed to $1.79 billion with at least $400,000 added since Hayden Adams posted his invention’s update.

On the other hand, its 24-hour trading volume sits on $400,052,000 as at press time. This is meagre compared to its all-time high on October 26 at $2.6 billion.

Uniswap's liquidity and volume stands tall even after liquidity mining halts
Source: Uniswap.Info

Wrapped Ether (WETH) liquidity pool still leads in terms of liquidity volume on Uniswap grabbing up to $743 million of the $1.79 billion. The next most funded pool is Tether at $182 million.

Uniswap is still the leading DEX competing primarily with bigger centralized exchanges in terms of trading volumes. Per DEX categories, even post-liquidity mining era, Uniswap still commands more than twice its closest competition – SushiSwap.

Source: Coinmarketcap

In terms of fees, Uniswap towers above Bitcoin by over $736,000 in the last 24 hours according to Crypto Fees. Uniswap raked in $1,328,665.64 in fees while Bitcoin had $591,911.75.

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