Editor's Note: This article comes fromDeep tide TechFlow (ID: Tech-Flow), Author: Song Xiaowan, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Deep tide TechFlow (ID: Tech-Flow)
Deep tide TechFlow (ID: Tech-Flow)
, Author: Song Xiaowan, reproduced by Odaily with authorization.
Notice! The coin circle slot machine is on.
10 times, 100 times, 1000 times, -50%, -90%... In this turntable game, ETH is a bullet, snap the pistol of Uniswap, get rich or go bankrupt, this is heaven, and this is also hell.
As of writing, the liquidity locked on Uniswap has exceeded 165 million US dollars. Recently, the daily trading volume of Uniswap V2 has also exceeded 100 million US dollars for several consecutive days, surpassing the total trading volume of Gemini, Polo and Binance US. More than half a year ago, this figure was 1.5 million.
What is Uniswap?
People in the currency circle who believe in Hayek's free market theory and Satoshi Nakamoto's decentralized values are presenting the most primitive and wild stories in the utopia they created.
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Coin circle slot machine
What is Uniswap?
This is an Ethereum-based decentralized underlying transaction protocol established at the end of 2018. In short, this is a decentralized exchange deployed on the Ethereum network.
Entering July this year, the trading volume and user volume of Uniswap began to surge.
In less than a month, Uniswap reached its peak.
"Uniswap used to have less than one new token a day, but now it has developed to dozens of new tokens a day." Investor Niu Yun said.
"Uniswap pulled the currency circle back to the original slot machine state in 2016." Niu Yun said.
Everyone can issue coins, the rules are simple, direct, and vigorous. If you want to get rich, you only need to keep shouting orders and let people take orders.
This pricing mechanism determines that the price of the corresponding currency will rise when the quantity of buying is large.
The life cycle of a new project on Uniswap, from launch to liquidity exhaustion, may only take a few days. Currently, Uniswap has 3390 smart contracts, that is to say, 3390 coins.
"Either get rich or return to zero." Such slogans are flooding the Uniwap community. Every investor seems to be red-eyed, shouting for each project.
This pricing mechanism determines that the price of the corresponding currency will rise when the quantity of buying is large.
There are two investment methods on Uniswap, one is to exchange project tokens with ETH and wait for the rise, and the other is to pledge assets to join the Uniswap fund pool to become a liquidity provider and earn transaction fee dividends.
"A bull market in the currency circle needs two points: 1. The threshold is low enough; 2. The gameplay must be sustainable." In a Uniswap community, an ashes player commented as follows: Uniswap is the starter of the bull market.
"A paradise for adventurers, a hell for leeks." An investor commented that Uniswap is a well-deserved slot machine in the currency circle.
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Decentralized MLM
Compared with the increase of hundreds of times or thousands of times, the transaction volume on Uniswap is not high, often only tens of thousands of dollars.
Under the premise that the trading volume is not high, the increase of a hundred times or a thousand times is a false illusion.
"The current Uniswap is like the previous MLM, but it is decentralized." Niu Yun said, they all follow the same routine, relying on pulling people's heads to take over.
So Uniswap has also become a mutual business in the group. "The more people who buy, the greater the income. There is no project party and there is no listing fee. It all depends on the power of leeks." Niu Yun revealed.
6 hours for a project, investors are dizzying. The name of this project has not been fully recognized, and the next project will start immediately.
Different from supporting resources such as project parties, Tokenfunds, exchanges, and market makers in the centralized world, in the world of Uniswap, the community is the most powerful organization.
A community called Happy Sea is said to be full within one day of its establishment. The recommended first-phase project SXY has increased by up to 700 times, but as of writing, the price of SXY has been cut in half from the high point, and the 24-hour trading volume has plummeted by 92%.
He cited Dogecoin as an example. "There is nothing left, and the bull market is still soaring." The reason for Jiang You's resumption is that the community is still there.
"Directly lower the threshold for launching projects and participating in projects to the state of 'everyone can do', unlike FoMo3D or transaction mining, IEO, which cannot be done without a team or an exchange." Jiang You said that the previous project It is not easy to do such things as falsification of data by Fang and the exchange, and there is no point in swiping the volume.
In fact, since the beginning of 2020, contract orders and Uniswap call orders have all been quietly transforming towards communityization. Whoever can control the community will control the source of traffic in the currency circle.
Under the wave of decentralization led by DeFi, the pattern of the currency circle has quietly changed.
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Lose the life of CEX
In the centralized crypto world, exchanges are the absolute kings. Now, change has taken place.
Shenchao TechFlow has introduced before that in addition to collecting currency listing fees from project parties and handling fees from investors, digital currency exchanges also have profit margins for internal black-box operations, such as buying low and selling high "selling counterfeit coins" and inserting pins. Liquidation, customer loss, etc.
At the beginning of 2018, there were more than 10,000 exchanges.
After the emergence of DeFi or Uniswap, the governance power of the currency circle has been quietly transferred. Regardless of currency issuance, listing, and liquidity trading, they are all being subverted.
On the morning of July 31, the former director of Messari tweeted that the transaction volume of Uniswap in the past 24 hours was 126 million US dollars, which is equivalent to one-third of the transaction volume of Coinbase.
In the past, the era when exchanges made a lot of money by listing fees and handling fees has passed.
"In the past, the project party was seeking to list the currency, and the project would choose to go to the decentralized exchange first. When the audience is sufficient, the centralized exchange will be forced to take the initiative to list the currency." Jiang You introduced that the decentralized exchange is the trend.
Will centralized exchanges decline because of this? In the view of Li Feng, an analyst at Shenchao, decentralized exchanges are now more impacting on small exchanges, and large centralized exchanges still have huge advantages.
"Uniswap is only suitable for small transactions, with poor depth, high fees, and slow settlement. It is difficult to have an impact on leading exchanges such as OKEx and Huobi in the short term, not to mention that centralized exchanges also have fiat currency channels." Li Feng said .
And the revival of the spirit of decentralization brought about by DeFi this time. After the chaotic and wild speculative stories, is the last drop of value in the currency circle wiped out, or is it the return of the bull market?
At the same time, a more direct and urgent question is, how long can Uniswap be popular?
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How long can the boom last?
In the past week, the popularity of Uniswap has begun to plummet. The most obvious is that the number of users, transaction volume, and transfers are all declining.
An investor told Shenchao TechFlow that after investing in a project on Uniswap and "being trapped by 2 eth", in order to get rid of the trap, he had to put down his posture and shout orders in various groups.
A day later, he found that all the liquidity of the project had been taken away—the promoter had transferred away the Ethereum and tokens in the fund pool.
"In the past, a project could be played for a few days, but now it may run away in a few hours," said investor Wen Feng.
Someone once made statistics. In just two days, 95% of the new currency projects have run away.
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95% of the projects have run away
The scams that emerged in units of hours began to dissuade investors. After being cut off one after another, some investors began to denounce the "calling leader" in the group.
Is the end of Uniswap slots coming?
Li Feng believes that as long as the liquidity of funds and the greed of human nature remain, the exchange game in Uniswap will not stop. However, as mainstream currencies such as Bitcoin and Ethereum rise, the popularity of Uniswap will decline accordingly.
After this wave of upsurge, who will benefit?
"Is Uniswap's rush to buy gas higher than anyone else's?" Niu Yun sighed, this wave of popularity, in the final analysis, is the miners who get rich.
In order to seize the opportunity, Uniswap investors often choose to "fill up" the Gas value, and these Gas fees are all collected by Ethereum miners.
