Uniswap is no longer the main decentralized exchange after losing more than $ 1 billion in liquidity
Uniswap has lost more than $ 1 billion in guarantees in the past 24 hours. The TVL (total blocked value) on the platform fell 44%. Consequently, the platform lost its first place in the list of DEXes with the highest TVL.
Maker and WBTC moved into first and second place with $ 2.34 billion and $ 2.07 billion in blocked assets, respectively. SushiSwap benefited the most, posting a 69.14% positive change in 1-day TVL, with its TVL jumping from $ 332 million yesterday to $ 571 million.
Today (November 17) is the last day of its liquidity mining program, and the liquidity of the protocol could drop further. This was a result expected last week, as Uniswap’s governance offered little direction in relation to the future of farming.
With pools expiring, guarantees are quickly being transferred to better projects. According to Defipulse, more than 1.3 million ETH (translating to about $ 600 million) has been withdrawn from the protocol.
All of this sparked research to determine the direction Uniswap will take. Apparently, liquidity farming will continue. Holders are currently voting for a new proposal that will aim to bring rewards to liquidity providers.
The proposal was suggested by Cooper Turley, who explained: “The purpose of this proposal is to ‘maintain the status quo’, using reduced incentives as a means to continue distribution while we seek to optimize allocations in the medium term.”
The proposal will cut the value of UNI rewards in half compared to the previous program. This means that only 1.25 million UNI will be assigned to the WTBC / ETH, USDC / ETH, USDT / ETH and DAI / ETH pools monthly for two months. Overall, this will be equivalent to 10 million tokens, representing about 4.6% of UNI’s current circulating supply.
Previously, 2.5 million UNI tokens were distributed to each pool per month. The community is expected to vote first on instant voting. The poll must receive 25,000 affirmative votes in 72 hours to proceed to the next consensus verification poll.
This vote has a quorum of 50,000 votes in favor over five days. If the second vote reaches the limit of votes in favor, the proposal will be a fully developed governance proposal, requiring 40 million “yes” votes to approve its implementation.