Produced | Odaily (ID: o-daily)
Produced | Odaily (ID: o-daily)
Uniswap ignited DEX, and also opened the door to the "earth dog" capital market.
The myth of getting rich on Uniswap in the past two days has made DeFi out of the circle. Capital hot money has bet on the decentralized exchange track one after another, and CEXs including the "Big Three" have also devoted themselves to DeFi and established special funds.
What followed was the loud cry of "DEX revolution" and "CEX must die".
However, Odaily found that behind the popularity of Uniswap, there are also various crises, scams and funds running rampant.
The current Uniswap is not as good as the Uniswap of the past. The Uniswap of the past was a high-level playground that geeks and big players were keen on. The occupation of "gold diggers" does not match the original setting of decentralized finance and inclusive finance.
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Issue and list coins on Uniswap for only $46
After Odaily's research, we found that the threshold for issuing and listing coins on Uniswap is extremely low. If the market-making costs of the project party are not included, the whole process can be completed for only 46 US dollars.
In fact, it is very simple to list your own token on Uniswap. First, you need to create your own ERC-20 token on Github.
The first step is to open the ERC20-Generator and click Create a Token.
Going down, you will see that the system will ask you to fill in the basic information about the Token you created:
TokenName is the name of the ERC20 Token you created;
Token Symbol is the symbol of this ERC20, I wrote DEFI;
Token Decimal is the number of decimal points. Through this parameter, the smallest unit of the token can be determined, the most common is 18, because the relationship between the smallest unit wei of ETH and the commonly used unit Ether is: 1,000,000,000,000,000,000 wei = 1ETH;
Token Supply is the total circulation, we write 100,000 here (note that the unit here is DEFI);
Initial Supply is the initial circulation, here I fill in 10000;
After filling in these parameters, we click Create Token, and MetaMask will pop up a window, allowing us to confirm the transaction of deploying a smart contract (issuing an ERC20 Token, which is actually deploying a smart contract).
Next, we need to wait patiently for the transaction to be confirmed. During this process, we can click the link of the Transaction ID and jump to etherscan to check the deployment status. Due to the current congestion of the Ethereum network, it is still in the Pending (to be paid) state .
When the transaction is confirmed, we can see the contract address of our ERC20 Token.
About half an hour later, our own first token was born (uncontrollably excited and excited): DEFI.
The whole journey costs only $46.
It can be seen that the smart contract address corresponding to our ERC20 Token is 0x76a94ee0d1758e5a3a20ac113507698fd936f1e2. Now there should be some DEFI in my wallet. We click the MetaMask icon on the browser. In the pop-up window, we click the upper right corner, and then click Expand View, select Add Token, and enter the contract address of the token.
Then the DEFI token we created will appear.
After creating the ERC-20 token, the next step is to list the currency on Uniswap.
Open Uniswap, select Add Liquidiy, enter the contract address of DEFI: 0x76a94ee0d1758e5a3a20ac113507698fd936f1e2, and DEFI will appear.
The next step is to price DEFI.
Because Uniswap uses an automatic market maker mechanism, the mathematical model is X*Y=K. X is the number of ERC20 tokens, Y is the number of ETH, and K is a constant. X and Y are in a trade-off relationship. If someone buys ETH in this contract, the amount of X will increase.
This pricing mechanism determines that the price of the corresponding currency will rise when the quantity of buying is large.
So as long as someone buys DEFI, it will boost the price of DEFI to keep rising. This is why some DeFi tokens with a small circulation can skyrocket 40 times in one day. At that time, Compound just put 3000 ETH and some COMP in the pool, and then it started to flow.
We have now set the price of DEFI at 1 DEFI=0.001 ETH, so that the pool will work.
As of press time, ETH/DEFI has already had a transaction order (the possibility of a robot swiping the order is not ruled out. According to Odaily, there is now an intelligent documentary robot on Uniswap, and it will be sold immediately when it sees a new project):
Sharing the process of issuing and listing coins on Uniswap above is not to teach you how to issue and list coins, but to show you the convenience of the project side in listing coins on Uniswap objectively and vividly, so as to illustrate the current capital market. How low is the cost of "committing crimes" on Uniswap.
Some DeFi tokens don't even tell a story, and directly attract leeks to enter the market by skyrocketing.
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Uniswap's sea of joy, a large wave of "Dogcoin" is coming
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earth dog poster
The ICO in 2017 reduced the difficulty of issuing coins, and coins can be issued with a white paper. Afterwards, air coins, MLM coins, and capital disks sprung up like mushrooms. In 2020, the emergence of DEX led by Uniswap has reduced the ups and downs of new projects. So difficult, as a result, a large wave of "Dogcoin" is coming to you.
What is "Dogcoin"?
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Happy Sea community group announcement
Due to the simplicity of listing coins and the lack of audits, fake currency scams abound on Uniswap. Investors call this type of domestic new currency "earth dogs", but most of these "earth dogs" are"Three certificates are complete"On the job, the website, Discord and Telegram telegram groups are generally the three standard configurations of the local dogs.
Huang Yu (pseudonym), a retail investor in the Uniswap Happy Sea community, told Odaily that he knew that these projects were scams, but he joined the group just to give it a go. The story of "everything changes to 200,000", I hope I can become a lucky one.
"Wealth is in the sky, just do it..."
"If you have a new dog, go for it, if you get an ether, it's a gamble..."
"I just like this kind of air, unabashedly..."
After reading the above, you may sigh: Uniswap has become a casino!
An air project + DeFi concept + call orders can complete short-term skyrocketing in Uniswap.
Take SLP, which has skyrocketed 30 times, as an example. It is essentially a token for a pet raising and fighting game. The main function of the token is to breed pets and purchase props. Although the concept of DeFi is mentioned in the introduction of the game, the content of the game actually has nothing to do with DeFi, and the token SLP does not have much value.
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The price change trend of SLP in the past month
Stimulated by the myth of getting rich, a large number of investors at home and abroad began to become Uniswap gold diggers. They quickly recharged money when they saw potential and popular projects. The madness was comparable to that of ICO back then. Some people even ridiculed that Uniswap has become a new way of asset issuance, not just a trading platform. "In the past, ICO had a white paper to pretend, but now you make a website, or even a website, and someone sends a coin. Going in, anyway, it's another crazy game of seeing who can run the fastest."
Big investors are mining, retail investors are taking orders, and it is those who run fast who make money in the end.
Since July, Uniswap has launched more than a hundred pools every day, and there are not many pools that were not removed (note: removed) in the end.
According to dextools data, in the past hour, as many as 7 pools were removed by Uniswap.
DEX itself is unlicensed, and the threshold for launching Uniswap is very low, so you need to be patient to research projects. For example, Balancer has a whitelist mechanism, so that the tokens screened are more reliable, and Uniswap’s"Three certificates are complete"It does not mean that it is reliable. Investors should still be careful about new websites, new Twitter, and new telegrams, and don't take chances with heavy positions.
According to Yang Mindao, the founder of dForce, they have heard that there are many scammers in the market who are queuing up to fork AMPL and Uniswap. People do not understand the risks of providing liquidity on Uniswap and Balancer, so it is not recommended to participate.”
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Dual Token Model Emerges
After the DEX represented by Uniswap and Balancer became popular, project parties and altcoins in the currency circle began to become "monstrous", which is completely different from the quiet state in the first half of the year.
According to the Uniswap Listing telegram group, an average of 6 new projects are listed on Uniswap every hour, and more than 300 to 400 new projects are launched every day.
Compared with CEX, DEX directly saves the complicated currency listing review process and sky-high currency listing fees, and users do not need to register or KYC review. An ETH wallet can open up almost all derivatives platforms such as DEX and DeFi lending .
With Uniswap, a DEX platform that issues tokens for free, and taking advantage of the popularity of liquidity mining, many project parties directly switched to DEX. A friend of mine issued a token on Uniswap two days ago, and the gameplay is also borrowed. The model of liquidity mining has been established.
In addition, according to Odaily, many of the tokens listed on the second- and third-tier CEX platforms are projects that have been active in Uniswap or other DEXs for several weeks or even months. After being listed on CEX, the price did not change much, and some even fell. For example, after the originator of liquidity mining COMP launched on OKEx, the currency price has been showing a downward trend.
Binance has also launched a lot of DeFi governance tokens. Recently launched RUNE, MKR, SNX and other DeFi star projects have also passed the price discovery stage on DEX. Down.
It can be seen that the large-scale effect has not been reflected in these projects.
CEX's more rigorous listing strategy and higher listing fees have led many new high-quality projects to choose to complete their initial offerings on DEX - the embryonic stage of value discovery. Recently, among the star projects alone, UMA and BZRX launched Uniswap, mStable launched Mesa, and the main battlefields of YFI and YFII are all on Balancer...
Even for the coins that have already been listed on CEX, many will choose to go to Uniswap to build a liquidity pool, such as Binance's IEO project Cartesi and so on. The FNX project token on WANChain has two sets of tokens, one based on WANchain and one based on ERC-20, which is convenient for Uniswap.
It is estimated that in a short period of time, this dual-token model may be imitated by other mainnet tokens that have already been launched on CEX.
Because it lowers the threshold for new projects, DEX is sought after by a group of technical geeks who believe in decentralization theory. They believe that the emergence of DEX is to revolutionize CEX. DEX allows the off-chain matchmaking business at the core of CEX to return to the chain, which is a major advancement of the blockchain and a major trend in the future development of the trading market.
Since the second half of 2018, more and more assets have returned to the chain, such as WETH anchored to ETH, and WBTC anchored to BTC. After these assets are moved to the chain, they are given the ability to program and schedule.
DEXs like Uniswap have directly made many third- and fourth-tier long-tail CEXs lose their existence value. There is a strange phenomenon in the currency circle, that is, there are more exchanges than investors, and all kinds of messy small exchanges emerge in endlessly. At the beginning of 2018, there were more than 10,000 exchanges.
These third- and fourth-tier CEXs are often inferior to DEXs in terms of liquidity and security. DEXs led by Uniswap and Balancer are far superior to these small exchanges in terms of depth and security.
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DEX still has a long way to go
At present, the attitude of public opinion towards DEX is extremely polarized. On one side are radicals who shout "DEX revolution, CEX must die", and on the other side are conservatives who say "DEX has started a new wave of currency issuance and is about to go downhill for ICO". , in the middle is a "gold digger" who doesn't even know what the mnemonic is.
In addition to the too many scams we mentioned above, DEX is currently facing the challenge of other impermanent risks such as the security of smart contracts.
From bZx to the theft of dForce, the security of DeFi smart contracts has been criticized by the outside world, and it is also the main reason why many retail investors dare not put their assets on DeFi or other DEX platforms.
Moreover, the current DEX is increasingly deviating from the original intention of inclusive finance, and is more like a casino for big players.
The original intention of AMM is to let everyone provide liquidity, and then reward you, so that users can be both users and liquidity providers. Just like POW, the original intention is that each user is both a user and a miner.
However, in the end, seeing the outcome of Bitcoin ASIC mining pool domination, it is not difficult to imagine that AMM’s liquidity providers will also converge to several large households or giant whale providers, or in other words, converge to In terms of capital, in the face of big capital, the proportion of liquidity pools that retail investors can provide should be insignificant.
At that time, the DEX of AMM wants to control the price of a currency. Once several large liquidity pools are withdrawn, and then a small amount of buying and selling is carried out, it can cause a large increase or smash effect on the currency price.
Let’s not talk about the ending lightly. What is certain is that this DEX revolution has indeed allowed retail investors to enter DeFi and use DEX, and it has also created the myth of some currency people getting rich.
But do we still remember that the original intention of DEX is to break the situation of CEX’s black-box operation and sell counterfeit coins, so that assets are truly in the hands of users, rather than reducing the running cost of funds and MLM coins.
References:
References:
Vernacular blockchain: "The rise of decentralized trading platforms, the embarrassment of second- and third-tier trading platforms"
Shenchao TechFlow: "Currency Circle Slot Machine, Uniswap's Red and Black"
