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Rival decentralized exchanges are upping their liquidity mining rewards to attract Uniswapâs former-liquidity providers, leading to SushiSwapâs TVL tripling in one week.
With leading decentralized exchange Uniswap having ceased its yield-farming incentive program, rival automated market makers 1inch, SushiSwap and Bancor are snapping up liquidity providers with targeted rewards.
On Nov. 17, the same day that Uniswapâs rewards ended, the cloned, automated market maker SushiSwap announced a new incentive scheme for the same four pairings previously incentivized by Uniswap.
Uniswapâs total value locked, or TVL, plummeted by more than $1 billion in less than 24 hours that day. Since posting a record high of $3.07 billion on Nov. 14, Uniswapâs TVL has crashed 57.5% down to $1.3 billion.
Uniswap TVL: DeFi Pulse
By contrast, SushiSwapâs TVL has rocketed nearly 160% since Nov. 17, from $407 million to $1.05 billion. Itâs now up more than 313% since a week ago.Â
SushiSwap TVL: DeFi Pulse
SushiSwap was not the only DEX to launch a âvampireâ campaign targeting Uniswapâs liquidity providers, with Bancor unveiling a liquidity mining program including retroactive rewards on Nov. 17.
On Nov. 18, 1inch launched the second stage of its yield-farming incentives, allocating an additional 1% of its tokenâs supply to liquidity providers. Speaking to Cointelegraph, 1inch CEO and co-founder, Sergej Kunz, said:
âRight now weâre seeing a lot of other projects launching incentives after Uniswapâs ended. As we are confident that our Mooniswap protocol has a lot of potential to be unlocked while attracting additional liquidity, we decided to announce our new liquidity mining program in order to hunt for the freed up liquidity from the Uniswap.â
Automated market makers comprise noncustodial decentralized exchanges that settle trades using liquidity pooled by users. In addition to offering liquidity providers, many DEXs have sought to attract users by offering yield-farming rewards in the form of their native tokens.Â
UNI token holder and blockchain-powered streaming platform Audius submitted a Uniswap governance proposal to reinstate the exchangeâs liquidity mining program with about half the rewards of the previous program on Nov. 17.
The proposal has nearly passed its first round of voting. However, it must complete two more stages of voting and secure at least 40 million votes to be implemented. Since decentralizing governance on Sept. 16, Uniswap has failed to pass any governance proposals.
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