HOW THE MAIN DEX IS DEVELOPING IN THE ETHEREUM NETWORK – UNISWAP (UNI)

Uniswap— a decentralized protocol for trading cryptocurrencies based on smart contracts. Works innetworksEthereum. This is the first project to implement an automated market maker and liquidity pools.

The protocol includes a series of smart contracts that allow any user to directly trade with each other. Technically, this is a decentralized exchange (DEX)

Price UNI: $7.33

ATH: $44.91 (05/03/2021)

Fall from ATH: 83.7%

Daily trading: ~$190 million

Max. emission: unlimited

In circulation: 734 135 450 (73%)

Market Cap: $5.4 billion

As of mid-July 2022Uniswapremains one of the main DeFi projects: it ranks second in the rankingDeFi Pulseby volume of blocked funds with an indicator of$7.04billion

Results of the Q2 2022 protocol

Despite the collapseTerraand a strong drop in the capitalization of the entire crypto market, trading volumes onUniswapdown just 8.7% from Q1 2022. This is explained by the fact that high volatility is beneficial for DEX - arbitrage bots continued to actively work in the system.

Decrease in liquidity byDEXwas 37.1% (this is in conditions where Ethereum fell by almost 70% over the same period of time).

Liquidity provider (LP) fees rose 146.9% in Q2 2022 from $1.4 million to $3.5 million, with a big boost coming from the long-awaited release of Optimism's governance token, OP.

The eighth wave of grants has passed, with a record 230 applicants applying for funding.

The project team launched a venture divisionUniswap Labs Venturesto invest in Web3 products.

Acquisition of NFT marketplace Genie

In June the companyUniswap Labsannounced the purchase of a marketplace aggregator of non-fungible tokens -Genie. According to representatives of the team, NFT products are already being tightly integrated into servicesUniswap. So, soon everyone will be able to use a web application through which it will be possible to buy and sell NFTs on all well-known marketplaces. The company is also integrating NFTs into itsApplication programming interfacefor developers and in their widgets.

UNI Token

UNI— an ERC-20 token designed to manage the protocol. Token holders vote on the further development of the network. Total volume of issued tokensUNIwill be1 billionunits. After reaching this amountUniswapwill introduce a “constant inflation rate” of 2% to maintain the network.

Conclusion

Gloomy macroeconomic situation, collapseTerraand geopolitical uncertainty all contributed to one of the worst quarters in crypto history. NeverthelessUniswapproves that it has a strong position in the market and the decentralized exchange model is here to stay in the future.

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