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SushiSwap DeFi ‘Vampire’ Sucks $1 Billion From Uniswap

The Uniswap fork known as SushiSwap has successfully migrated to its own protocol and drained over a billion dollars from the token swapping platform it spawned from in the process. Is this the new normal for proceedings in the DeFi sector? The much-hyped SushiSwap platform has pulled off its protocol migration, successfully draining Uniswap of […]

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The Uniswap fork known as SushiSwap has successfully migrated to its own protocol and drained over a billion dollars from the token swapping platform it spawned from in the process. Is this the new normal for proceedings in the DeFi sector?

The much-hyped SushiSwap platform has pulled off its protocol migration, successfully draining Uniswap of liquidity. It has been referred to as a DeFi vampire, and for good reason. The move highlights that DeFi is driven by choice, and avaricious yield farmers clearly wanted more Sushi.

The Open-source, Ethereum-based liquidity protocol Uniswap was launched almost two years ago following a small grant from the Ethereum Foundation. In April 2019 it had larger VC investments which went into developing and upgrading the platform. Since then it has evolved to become the world’s largest decentralized exchange with over $1.8 billion in total value locked at its peak.

SushiSwap is barely a fortnight old, yet in that short time has managed to pull off the unthinkable—replicate and then topple the top DEX by dangling a bigger carrot. The nature of DeFi means that it is essentially a free market and traders and investors can and will flock to whatever they see as the best deal at the time, regardless of any implied ethics.

Image: SushiSwap

Sushi Migration Success

On Sept 9, SushiSwap successfully migrated platforms, taking with it over 70% of Uniswap’s liquidity. The new ‘head chef,’ FTX exchange CEO Sam Bankman-Fried (aka SBF) posted a migration plan which outlined the steps taken during the process. The CRV/ETH pool was the first to be migrated and a pool-by-pool migration occurred after successful testing.

To incentivize liquidity providers to keep their collateral on the new version, SBF threw an additional 2 million SUSHI tokens into the pot to be divided among stakers. The incentive clearly had the desired effect.

There is now a new website and analytics dashboard which is reporting that the current liquidity on the new platform is $1.28 billion.

Control of the platform will be governed by a new multi-signature wallet that will grant full administration rights for the protocol. It will be managed and accessed by nine candidates, and any action would require six of those nine administrators to agree.

The voting process has already ended and, unsurprisingly, those top-nine candidates are all Sushi whales who will now be in the driving seat.

SUSHI whalesSUSHI whales
Top Sushi Holders – Sushi.Zippo.io

Speaking to Cointelegraph, SBF did assert that he may share thoughts and suggestions on the operations of the platform, but he would not be actively running it, adding “that’s up to the SUSHI holders; ultimately, it’s not up to me long-term what happens.”

Uniswap TVL Slumps

Uniswap, which previously held the top spot in total value locked figures has been dumped down to ninth place with a 75% loss in liquidity according to DeFi Pulse.

Over $1.2 billion has left Uniswap, dropping its TVL back to around $350 million.

Uniswap TVLUniswap TVL
Uniswap TVL – DeFi Pulse

It should be noted though that Uniswap TVL was around this level before the SushiSwap frenzy took off so effectively it has returned to its natural state. It only accrued that liquidity because farmers wanted the liquidity pool tokens to deposit on SushiSwap and possibly some of the other clones that have come and gone since.

It is possible, and highly likely, that Uniswap will revamp its reward systems to lure liquidity providers back. Currently, they only get a share of the 0.3% trading fee with no additional native token drops or incentives.

UniswapUniswap
Source: Uniswap

Uniswap has benefitted from its doppelganger having surpassed even Coinbase Pro for trading volumes last week. In her latest Defiant newsletter, industry expert Camila Russo observed that it hasn’t fragmented liquidity as some had feared; “Instead, it grew the pie, drawing more people into both Uniswap and SushiSwap.”

Russo added that users have the choice of another automated market maker but those holding SUSHI tokens may be out of pocket following ‘Chef Nomi’s’ sellout over the weekend.

SUSHI Token Price Reaction

Following an 80% price slump from its all-time high, SUSHI token prices have not managed to recover much in the wake of the migration.

There was a slight creep up to $3 a few hours ago but prices have sunk back below that since and are around the $2.87 level according to Uniswap.

SUSHI pricesSUSHI prices
SUSHI/USD – Uniswap

SUSHI prices are still down 62% on the week.

As reported by BeInCrypto those tokens could still be way overvalued and driven by hype, even at current levels. The current inflationary tokenomics model of the platform means that it would need massive trading volumes to sustain token prices anywhere near their previous levels.

The DeFi space has evolved so fast this year that it has been a tough job to keep up. This latest chapter may pave the way for a new normal of fair launches in the burgeoning space.

Source: https://beincrypto.com/sushiswap-defi-vampire-sucks-1-billion-from-uniswap/

Blockchain

XRP, Tron, Tezos Price Analysis: 01 March

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XRP could be in line for another sell-off as the 200-SMA looked to cross above the 50-SMA. Down the ladder, Tron and Tezos were projected to stick to a fixed channel, with a breakout largely dependent on the future movement of market leaders Bitcoin and Ethereum.

XRP

Source: XRP/USD, TradingView

The bearish nature of XRP’s market was evident on its 4-hour chart as the price remained below the 200-SMA (green) despite a slight recovery at the time of writing. Moreover, the long-term moving average looked positioned to cross above the 50-SMA (blue). The last time this development took place was when a lawsuit was announced by the U.S. Securities and Exchange Commission against Ripple which resulted in a massive price drop and a bear market that lasted for over a month.

The MACD line floated just above the signal line but momentum seemed weak on the buying side. The Stochastic RSI also tipped in favor of the bulls. A strong sell-off could be avoided if the indicators maintain a positive stance. If the sell-off does take place at the current level, $0.25 support could be in focus.

Tron [TRX]

Source: TRX/USD, TradingView

Tron continued to trade rangebound between $0.05 and $0.04 as momentum switched sides between the buyers and sellers. The Awesome Oscillator flashed green at the time of writing as momentum diverted back to the buyers.  The 24-hour trading volumes surged by over 27% and clocked in at $1.76 billion.

While it looked like Tron was poised to rise above its overhead resistance, low volatility according to the Bollinger Bands worked against a bullish outcome. That could change if buying picks up over the coming sessions. Conversely, a pullback in the broader market could see Tron move towards $0.036 support.

Tezos [XTZ]

Source: XTZ/USD, TradingView

A horizontal pattern formed on Tezos‘ 4-hour chart as the price oscillated between a resistance and support line since bouncing back from the $3.2 mark. For traders, sell signals were present on the upper trendline and buy signals on the lower trendline. Considering Tezos’ strong correlation with Bitcoin, the state of the king coin could determine the direction of a breakout from the channel.

The next resistance level lied at $4.3, while the next support rested at $2.7. The MACD line moved above the signal line as bullish momentum was on the up. The RSI also pointed north from around the 50-level.


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Source: https://ambcrypto.com/xrp-tron-tezos-price-analysis-01-march

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Why countries like the US can do better in terms of crypto adoption

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The interest in cryptocurrencies has been on the rise and the general awareness of the technology and its function as a digital asset has risen substantially in the past few years. While the United States has been open to innovation, the lack of regulatory clarity within the country has raised various concerns between people and businesses in crypto.

Whereas Asia has been enabling wide-spread adoption of cryptocurrency with countries like Japan and Hong Kong trying to form guidelines around cryptos. However, apart from the regulatory differences, the biggest difference could also be with regard to user behavior in these two regions.

Amber Group partner, Annabelle Huang, who recently appeared in Anthony Pompliano’s podcast stated that although the innovations were taking place in the United States of America, the greater chunk of adoption was coming from countries in Asia. The continent has also remained a hub for miners and crypto exchanges and according to Messari’s report, by the end of 2019 six out of ten of the largest cryptocurrency firms are located in Asia.

Huang noted:

“…The biggest difference is just the sentiment and the drive of people. I think in the States, just because there are a lot of regulatory constraints and concerns, people sometimes are more hesitant towards driving the business forward. But, in Asia, I think people are more eager to test things out, get things going on the ground. So, we do see a lot of early adoption in Asia.”

Asia has been a focal point for crypto adoption and nearly 42% of the market capitalization is based in the continent.

Source: Messari

The advantage Asia has been offering to new crypto projects is mainly due to the cultural mentality according to Huang who noted that:

“I think we see in Asia, in Korea and Japan, it is hard for people to find yield anywhere. […] Especially like, I guess, in Japan right, all the yields are negative and I think people are perhaps more inclined to find more opportunities and more acceptable to new things, so that’s why I think crypto adoption in Korea and Japan are highest among the world.”

Although China has remained apprehensive about cryptocurrencies, the country has been inching closer to launch its own Digital currency Electronic Payment [DCEP] system. As the market corrects itself, the coming changes in the market could also trigger changes in the sentiment across the globe about crypto, however, the regulations continue to remain in the gray area.


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Source: https://ambcrypto.com/why-countries-like-the-us-can-do-better-in-terms-of-crypto-adoption

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Hathor opens doors for Bitcoin traders

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KuCoin launches trading services for the trading pair HTR / BTC at 10:00 AM on March 2, 2021 (UTC).

The HTR / USDT trading pair is currently open for HTR.

HTR has also launched a grant program for projects that want to develop the Hathor ecosystem and contribute to the global adoption of blockchains.

Apply Now! #BuildOnHathor #HTR

https://landing.hathor.network/grantprogram2021

Disclaimer: This article is a paid post and must not be considered as news/advice. 


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Source: https://ambcrypto.com/hathor-opens-doors-for-bitcoin-traders

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