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(Total transaction volume on August 30, data source: DeBank)

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Automatic protocol issuance of tokens, token distribution 0 reserved and transparent distribution, the food chain of the currency circle is reshaping a new chain, this time, "big guys" and "leeks" stand on the same starting line.

However, where there are benefits, there are "rivers and lakes", and the DeFi star DEX protocol Uniswap undoubtedly won the top spot in this battle. Uniswap sparked a revival of the AMM (Automated Market Maker) model, single-handedly capturing billions of dollars in trading volume in this segment.

Up to now, Uniswap has been upgraded and iterated to the V2 version. It is worthy of recognition that Uniswap has promoted the possibility of allowing users to become market makers to provide liquidity and obtain income. It is also one of the few DeFi projects on Ethereum that have not issued governance tokens .

The Uniswap V1 version confirmed the possibility of an automatic market maker, laying the foundation for on-chain token exchange and decentralized token circulation pool protocols. From V1 to V2, Uniswap rewrote the smart contract with Solidity, overcoming the limitations brought about by using Vyper in V1.

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Copycat Mooniswap?

On August 11, DEX aggregation protocol 1inch announced the launch of Mooniswap, an automatic market maker service.

1inch publicly declared that Mooniswap, a new automatic market maker DEX, is an improvement and upgrade to the Uniswap model, which will redistribute part of the profits of arbitrageurs to the liquidity pool and protect traders from front-running attacks.

"According to simulation experiments, Mooniswap's income for liquidity providers is expected to be 50% to 200% more than Uniswap V2." 1inch said.

"Backing on a big tree is good for enjoying the shade." Mooniswap's transaction volume exceeded 14 million US dollars in two days after its launch, and it took a good part of Uniswap's liquidity wealth pool quota.

Subsequently, the CEOs of the two major platforms "talked about each other" on Twitter, which also brought Mooniswap to a climax: the founder of Uniswap accused Mooniswap of plagiarizing its protocol and trading interface, while 1inch co-founder Anton Bukov Then responded: "We did copy and modify some Uniswap source code, this is because the Uniswap team has done a good job in development and open source. This is what the Uniswap team wants to see - to help other developers with AMM development .”

1inch also tweeted to encourage users to migrate from Uniswap V2 to Mooniswap. This time Uniswap couldn’t sit still anymore. Its founder Hayden Adams responded that 1inch had previously informed them that they would not compete with Uniswap. Obviously they lied…

From the perspective of eating melons and watching dramas, it is really more exciting than Zhen Huan's biography. As ordinary people who eat melons, from the logo of Mooniswap's website alone, they can see the strong color of "chasing the wind".

As for the point of "not competing with Uniswap", it is clear that the Uniswap founder's thinking is too simple. The market has verified the feasibility of the Uniswap model. How can there be no new competitors entering the market to share the cake?

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Is there still a chance for the emerging "Swap" platform?

Some people say that the take-off of Mooniswap is one of the biggest threats to Uniswap. In fact, it is still too early to say. The DeFi fire has virtually driven the cognitive awakening of the market, and various new platforms of the "Swap" series are emerging one after another, launching a new round of challenges to the liquidity wealth pool...

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(Data source: ARPA team)

At this point in the development of DeFi, if any project wants to gain greater market prospects and participation, it must make breakthroughs in terms of security guarantees and revenue models. Security is the bastion of the platform, and it is also the "risk barrier" of the DEX platform. Vulnerabilities in smart contracts, lack of security audits, etc. have caused the counterfeit currency storm to continue.

Now many projects will be marked with the words "this contract has not been audited", which is tantamount to directly transferring the risk and responsibility to the investors. There is no essential difference from "if there is any similarity, it is purely coincidental". It is to inform the audience in advance , "If something goes wrong, I won't take the blame for it"...

The JustSwap platform launched by "Sun Late But Arrived" followed the trend and went online very quickly, and also harvested a part of the traffic, but soon faced the dilemma of transforming from a "hundred times currency factory" into a "counterfeit currency factory". The team's approach is "the official team releases the whitelist project", which means "the whitelist has official endorsement, investors (jiu) capital (cai) (men) can operate with confidence, let's take care of it." But after a closer look After the "First Batch of Whitelist and Publicity Rules", it was found that the team review was only added on the basis of the original, and most of these projects were well-known projects or related projects, and some new projects and users actively created new liquidity As far as the pool is concerned, there is no breakthrough in the model.

Compared with the official whitelist mode of the JustSwap platform, the SwapX platform has developed a new concept of "Taobao mode". That is, "run a DEX like running a Taobao shop", every player can apply to open a shop (liquidity pool). Stores that pass the audit will be certified with V, and the store pool and other pools will have priority and distinction to ensure that investors will not be disturbed by wrong information and suffer losses.

For the upgrade of the "Swap" platform, in terms of profit optimization, Mooniswap, a core follower of Uniswap, is also sparing no effort to reward users. Compared with other platforms such as Uniswap, Mooniswap claims that price slippage profits alone can bring liquidity providers as much as 200% of their income.

In fact, behind the above-mentioned high returns is the common problem that DEX is currently facing - the gas fee is too high, which virtually keeps many small traders out.

If it is temporarily impossible to effectively avoid PUA due to Ethereum’s sky-high GAS fee, the platform must start from other concepts and models to obtain more profit margins for investors.

At present, many DEX platforms have begun to issue platform tokens one after another, and they also want to give players more room for appreciation on the basis of the gameplay of centralized exchanges issuing platform tokens.