Hello!

Uniswap, the decentralized protocol for automated liquidity provision and swapping that runs on Ethereum has been leading the DeFi rankings in terms of volume since the end of September, beggining of October.

Most of this success was in fact caused by the creation of the UNI token. This token was airdropped to all the addresses that provided liquidity to the platform. It resulted in some "free money" that most people like me, traded back and forth for some profit.

After the airdrop, there were some Liquidity Pools created where people could stake ETH plus another crypto (ERC20 tokens) such as WBTC, DAI or other stablecoins. A lot of people, me included, joined this pools with some liquidity and get more UNI tokens.

Source

The duration of these pools was 30 days. As far as I know there are not any active pools right now and there isn't any plan to create more anytime soon.
This could change at any time if the community decides it, but for now it looks empty:

Uniswap volume drop after Liquidity Pools ended

There was a HUGE drop in volume after these Liquidity pools ended.
Uniswap reached 3 billion dollars in value locked this month of November, and today there is $1.28B locked. It dropped 1% more in the last 24h.

The chart doesn't look promising:

Source

This is how you literally crush a chart that looked really healthy.
We went from slow and steady growth to a huge and sharp decline. It almost lost 50% of their volume in a matter of days. I am not sure if this is going to recover at the previous levels.

Who is getting this liquidity?

When there is a loser sometimes there is a winner. In this case, there is a clear winner called SushiSwap that is gaining all of this liquidity and is close to have more value locked than Uniswap.
I will write about it tomorrow.

Enjoy! 😊

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