CryptoComes Original Article
Today, Nov. 17, the leading decentralized exchange in the DeFi ecosystem, Uniswap, has closed its liquidity mining program. It has triggered a massive outflow of "yield farmers" to other protocols.
Uniswap loses almost half of its liquidity in 24 hours
The lion's share of Uniswap (UNI) traders have left the protocol in the first few hours after the completion of its rewards program. After the last UNI rewards were sent, "yield farmers" moved almost $1.2 bln in a matter of hours, according to leading on-chain data vendor IntoTheBlock.
At press time, according to the DefiPulse tracker of decentralized financial instruments, Uniswap (UNI) hosts only $1.46 bln in users' liquidity. This indicator is down 49.39 percent in 24 hours. For the first time in days, Compound (COMP) kicks Uniswap off the Top 3 list of DeFi protocols sorted by USD liquidity equivalent.
The majority of Uniswap traders have migrated to SushiSwap (SUSHI) liquidity provision protocol. DefiPulse noted that SushiSwap (SUSHI) liquidity surpassed $0,65 bln as it added 78.49 percent in 24 hours.
It is not the first "vampire attack" by SushiSwap (SUSHI) againist Uniswap (UNI). As covered by CryptoComes, on Sept. 10 of this year, SushiSwap drained 70 percent of Uniswap funds ($2 bln) in 48 hours.
In September, SushiSwap (SUSHI) started offering rewards that were more attractive than Uniswap's. However, the exit of Chef Nomi caused a massive exodus of traders from SushiSwap, and its competitor managed to prompty restore the status quo.
Liquidity mining is dead. Long live liquidity mining!
At the same time, an interesting proposal has been published on the governance portal of Uniswap. Some UNI enthusiasts suppose that liquidity mining should continue with decreased rewards.
While Uniswap used to distribute 10 mln UNI monthly, the new program reduces this sum to 5 mln UNI across four pools: WBTC/ETH, USDC/ETH, USDT/ETH and DAI/ETH.
The proposal needs to get more than 50,000 UNI worth of voting weight to be implemented on-chain. According to the inaugural roadmap, the prolonged liquidity rewards program will end on Feb. 1, 2021.
Mainly, the community is enthusiastic about the new proposal, but some activists claim that UNI pools should also be added to a new liquidity program.
