2021-03-30 23:39:57
Uniswap trade volumes jump 450% in a day due to one token
The trading volumes of the Uniswap decentralized exchange in one day jumped by 450% to a new record of $ 7.17 billion.
The reason for such a sharp increase in activity is related to the DELTA token. It now accounts for $ 6.13 billion, or 85% of Uniswap's total trading volume. At the same time, the liquidity of the token is only $ 16.4 million.
Delta is described by its creators as "an option layer on the blockchain that uses a combination of liquidity standards to reduce premiums and provide competitive option prices." To earn Delta tokens, users are encouraged to carry out transactions on Uniswap.
“When Delta tokens are transferred, the token distribution program is activated. 10% of the total balance of tokens is sent to users, and 90% are initially blocked and distributed linearly over a two-week period, ”the project description says.
Thus, the large trading volumes on Uniswap are the result of the liquidity rebalancing system used by Delta. Its work resembles money laundering, when market participants move assets multiple times to create the appearance of increased activity. In the case of Delta, however, the system aims to use liquidity in Uniswap pools to reduce exchange rate volatility.
Uniswap founder Hayden Adams announced that he does not consider transactions with the Delta token as money laundering, but also sees no way to include them in real volumes. Excluding Delta's movements, Uniswap's turnover for the last 24 hours is $ 1.08 billion.
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