Why Uniswap lost 50% of liquidity in one single day?
On November 17, the most famous DEX in the world, Uniswap, lost almost 50% of its liquidity.
As we know, Decentralized Exchanges work only and exclusively with the liquidity that is provided by external users who decide to send their tokens to a certain pool in exchange for a fee for each swap (exchange). According to DeFi Pulse, the platform now ranks sixth for locked-in liquidity with a value hovering around $ 1.3 billion. But what caused this massive token outflow and where is this capital going?
In just under 24 hours, the liquidity of DEX Uniswap went from an all-time high of around $ 3 billion, reached on November 14, to losing most of its capital in the early Asian hours. The DEX SushiSwap and Bancor protocols recorded respectively 60% and 40% of liquidity inflows, climbing in the general ranking but always remaining below the DEX par excellence. The trigger for this capital flight was the end of the liquidity mining program made available by the platform a few months ago. In fact, Uniswap launched its liquidity mining reward program together with its native UNI token in September. The end of the token distribution was scheduled for November 17 at 00.00 UTC: after this period the governance of the project would in fact have reached its limit, thus giving users…
