Jul 262 mins read

Uniswap Takes the Lead with Over $2 Billion Locked in DeFi

The Decentralized Exchange Platform Plans to Issue 4 Billion UNI Tokens

Uniswap Becomes the Biggest DeFi Project with Total Value Locked of Over $2 Billion

Uniswap DEX platform

The decentralized exchange platform (DEX) Uniswap is leading the decentralized finance (DeFi) space with a Total Value Locked of over $2 billion in just two months. This sets a record for all DeFi projects, surpassing the entire DeFi market in size. Uniswap comprises approximately 18% of the total $11 billion cryptocurrency assets locked in the DeFi space.

Uniswap employs an automated market system for liquidity pools that enables users to trade Ether with any ERC-20 token. The platform provides interest incentives to users who deposit tokens into liquidity pools and lowers exchange fees.

Uniswap's automated market system for liquidity pools

Uniswap experienced a substantial decrease in locked value when a significant amount of liquidity was moved to its competitor protocol, SushiSwap. However, Uniswap quickly bounced back by introducing its native token UNI and distributing tokens to existing users.

Uniswap's native token UNI

Uniswap's dominance in the DeFi space and rapid growth show its potential to become the go-to decentralized exchange platform that offers users accessibility, flexibility, and liquidity.

Uniswap Platform Plans to Issue 4 Billion UNI Tokens

Uniswap Logo

The Uniswap platform plans to issue and distribute 4 billion UNI tokens to the community over the next four years. UNI is the native token of Uniswap, a decentralized exchange for trading ERC-20 tokens on the Ethereum blockchain.

According to DeFi Pulse data, Uniswap is the biggest project in the decentralized finance (DeFi) sector, with a total value locked (TVL) of over 23 billion dollars. The next biggest project is the peer-to-peer lending platform Maker, which has a TVL of 19.6 billion dollars, but it still lags behind Uniswap.

DeFi Pulse Graph

Uniswap's success can be attributed to its unique automated market maker (AMM) model, which eliminates the need for order books and centralized intermediaries. This means that anyone can trade any ERC-20 token pair seamlessly and instantly, with no restrictions or middlemen.

Uniswap AMM Model

In addition to trading, UNI holders can participate in governance of the Uniswap protocol, such as proposing and voting on new upgrades and features.

Uniswap Governance

Overall, Uniswap has become one of the most popular and innovative projects in the growing DeFi ecosystem, and its future looks bright with the planned issuance of 4 billion UNI tokens.