The decentralized exchange known as Uniswap just passed a major benchmark as reported by Samuel Haig at Cointelegraph this morning.
Namely, the exchange has now facilitated a total of over $1 billion for liquidity providers.
“On Tuesday, Lucas Outumuro, head of research at crypto data aggregator IntoTheBlock, shared a chart on Twitter showing that the combined fee revenues of Uniswap’s v2 and v3 Ethereum mainnet deployments have surpassed $1 billion,” Haig writes. “Including the fees generated by both Uniswap v1 and its v3 deployment on Optimism, Outumuro noted that roughly $1.02 billion has been distributed to Uniswap liquidity providers since the protocol’s creation in November 2018.”
The question, for many who are relatively unfamiliar with this type of enterprise, is what Uniswap is, exactly.
Internal and external explanations of platform show that Uniswap essentially facilitates token transactions through Ethereum mainnet operations, via a method referred to as “smart contracts.”
This makes sense, because those familiar with smart contract blockchain technology know that Ethereum is the major blockchain system best built for handling smart contracts.
In other words, Ethereum’s ability to encapsulated different types of digital contracts make it perfect for the job of helping Uniswap to swap tokens for users; as the largest defi product platform of its kind, Uniswap has quite a history. For example, funders include Andreessen Horowitz, Paradigm Venture Capital, Union Square Ventures LLC and ParaFi.
As interest in defi and crypto grew, services like Uniswap became major methods for investors to trade and transact.
What does Uniswap’s milestone mean for investors?
It’s another indicator of that slowly growing institutional investment and general enthusiasm for cryptocurrency and similar digital assets that is quickly changing the face of business. Just a few years ago, most people didn’t know what cryptocurrency was, and most of them didn’t care. These types of news show clearly how an accruing interest in crypto influences the markets.