Uniswap – the leading DeFi DEX – has crossed $2B in Total Value Locked.
— Hayden Adams ?? (@haydenzadams) September 27, 2020
According to Etherscan and DeFi Pulse, the current Total Value Locked (TVL) is estimated to be around 2.3 billion USD, growing by 15.62% over the past week.
This growth can be attributed to the liquidity mining of Uniswap’s native token, UNI. Currently, Liquidity Providers (LPs) can provide liquidity to 4 pairs on the Uniswap to earn UNI:
- ETH-DAI
- ETH-USDC
- ETH-USDT
- ETH-WBTC
Unsurprisingly, the largest pool is WBTC, with nearly $500M in TVL. Seeing as both ETH and BTC are generally in a constant state of flux, impermanent loss is theoretically lower than a stablecoin pairing, where the stablecoin side remains constant while the price of ETH changes constantly.
A Unicorn is born
Uniswap is estimated to have more than 3M ETH locked, accounting for more than 2.5% of the total ETH supply – higher than Maker‘s 2.8 million ETH locked. While Uniswap TVL is increasing rapidly, Maker’s seems to be flatlining, indicating the craze for liquidity mining and yield farming.
Uniswap currently averages anywhere between $300-400M in 24 hour volume. This volume changes on a day to day basis and we have seen the numbers as high as $700-800M.
Uniswap is already processing more volume than most of its centralized counterparts like Kraken and COINBASE Pro. Its no wonder that a decentralized non-custodial exchange like Uniswap – which has one of the most user-friendly interfaces – has garnered so much momentum in the past few months. With Uniswap V3 just around the corner, it does not seem likely that Uniswap will stop anytime soon.
To stay up with Uniswap, follow them on Twitter.
Tarang discovered ETH in 2018 and has been actively involved in DeFi after finding PoolTogether in 2019. He’s most interested in the DEX sector as a frequent user and participant in Uniswap and Kyber Network alongside lending protocols like Aave. Tarang’s active presence in DeFi has given him a front-row seat to cutting edge trends and real-time developments. Stay up with Tarang by following him on Twitter.
