Uniswap Unicorn

in LeoFinance11 days ago


I think we all need to take a moment to recognize what Uniswap has done for the entire cryptosphere. It truly is a sight to behold. They single-handedly created an OPEN-SOURCE product that added massive value to everything.

Uniswap was clearly the first and most popular protocol to normalize AMM (automated market maker) technology. I used Uniswap several times before even realizing how it worked or even how important it was. Much like google, their simple interface of allowing users to trade one coin for another was all I needed, so I never looked any further than that.

Uniswap added so much instant liquidity to the market that value spilled over into every single ERC-20 token on Ethereum and even into networks outside of Ethereum. It's already been cloned over a dozen times, and as we've seen, Pancake Swap and even the entire Binance Smart Chain could not really exist without it.

So much value was created with Uniswap that it affected the markets in ways that were never even considered. For example, before Uniswap became a thing the interest rates for minting DAI were absurd. This is because there was very little reason to hold DAI other than dumping it for more ETH and margin trading.

Now that Uniswap and defi yield farming are a thing the demand for DAI has increased exponentially. Half of all pools paired to DAI must lock DAI in order to farm and provide liquidity. This exponential increase in demand in turn increased the price of DAI, forcing makerDAO to lower interest rates, making it way cheaper to mint DAI while still maintaining a stable price.

There are many events like this that happened as a result of Uniswap that will perhaps never even be recognized. Economies are complicated and there are a lot of moving parts/variables. It's impossible to say how certain things came about: but it is quite clear that Uniswap has created immense value within the cryptosphere dozens of times.


Synergy is key

Uniswap is the perfect example for showing why and how this emergent open source economy can and will create exponential value going forward. Uniswap's mechanics allow it to generate plenty of value for itself, while also not having to rely on intellectual property laws to stifle innovation and progress. Anyone can use the code for any reason and no one is going to say boo. This is the value of fully permissionless/borderless networks.

We can all freely build and create value on top of the systems we've already created. When compared to the legacy systems it's easy to see why permissioned ownership absolutely can not compete with open networks. The potential to scale open networks is exponentially greater than a closed system. This is why enterprise blockchain will never go anywhere, no matter how many billions get pumped into it, just like intranets/extranets went nowhere in comparison to the Internet. There is no incentive for innovators to build on top of a closed system.



I think that's all for now. Still attempting to work diligently on my own Magitek project. Fixed an infinite loop issue recently. Been a while since I've crashed a program with such a blatant fatal error. Perhaps that's worth its own post. Perhaps not.

The main point here is that all of the value we are building today will continue to snowball into the future. You can't get that in the legacy economy. Permissioned systems do not scale, and corporations/governments always become top-heavy and collapse if they become too large and bloated from their own corruption and complete lack of fair distribution. Flat-architecture is the key to building a sustainable world that values long-term success over short-term sellouts.

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Uniswap is the perfect example for showing why and how this emergent open source economy can and will create exponential value going forward.

Since Uniswap made that legendary airdrop last year, it's been impressing the whole crypto community. And I'm one of those maniacs who think that Uniswap is going to change the economic world forever. I really hope so.

Thanks for the nice post :)

It's actually actually really great project but it is more in line with a corporation. I've coined the term crypto-ration.

They have a friken! Legal team and building a legal savings to help drive adoption. It's actually pretty cool

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Actually Bancor was first large ($150M ICO) project to deploy an AMM, I think, but Uniswap was the first to become really popular.

Also FWIW, I deployed @teamsmooth-mm, which is an AMM (albeit with only private capital; not really feasible to have LPs without smart contracts), on Steem in October 2016 well before the 2017 Bancor ICO. It might have been the first AMM on a crypto platform, I'm not sure.

Hive needs smart contracts :)

Yeah I worded that in a very unclear way.
Should just be first popular instead of first and most popular.
And now let it be immortalized on blockchain for all eternity.

So with uniswap, I guess there will be no cashing out to buy another token right? Every transaction will be done within the crytosphere. Can't wait for this magitek project seem mega

I watched for a while, had lots of friends try to get me into Defi but I was super skeptical. I did end up getting some UNI just to have some exposure, and then at the beginning of this year participated in CubDefi on BSC. I still recognize where it came from and why UNISWAP matters. Im starting to see lots of people offer Defi courses, which is funny because that is a good way to make money. Low risk haha

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You can never rival a fair system, which is why in the not so distant future open-source technology will completely take over entire systems and structures of countries and their economies. Am that crazy to believe so

Wow thanks for sharing this, uniswap gets me confused sometimes.

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I feel a little bad since I missed the uniswap bandwagon and I do know a ton of people who got the airdrop earned quite a bit. However the open-source aspect is great and I think more projects should be doing it.

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That is the success that many want to have but without doing what they did.

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