Hi Guys
The protocol migration of Sushiswapwent well and a huge chunk of the liquidity that was on Uniswap now ends up on Sushiswap.
You can see it on these graphs. Liquidity on Uniswap crumbles while that on Sushiswap explodes….
This is simply because of how Sushiswap works and how the migration went. Indeed this migration took all Uniswap LP tokens staked on SushiSwap, and exchanged them on Uniswap for the respective token pairs in order to initialize new pools of liquidity from these tokens. These new pools are therefore identical to the standard Uniswap pools, with the additional functionality that all accrued fees will be distributed to holders of $ SUSHI tokens according to the logic described above. To put it simply, Sushiswap has “sucked up” the liquidity present on Uniswap.
Uniswap's response
But everything is going extremely fast in DeFi at the moment and Uniswap is not going to let it go without a fight. A reaction, and not the least, therefore seems to be organized. Rumors, quite serious, announce the arrival of UniswapV3.
As many DeFi protocols, UniswapV3 will issue a native utility token. Surely used in governance as well in order to fully decentranized the protocol.
Then, and i guess it's the best part, UniswapV3 will support the second layer solutions, L2. This will probably dramatically improve protocol speed and help to reduce astronomical network (gas) charges at this time.
It should also be kept in mind that Uniswap has greatly participated in the emergence of DeFi and that it remains one of the pioneering protocols in the field. It allows everyone to add liquidity pools without KYC and for free and rewarding LPs.
A lot of protocols have therefore launched their tokens through Uniswap and many users have made their capital grow by becoming LPs. This protocol is therefore not to be burying and the battle ahead risks being grandiose.
