(04-Sep-20) This Week in Crypto

(04-Sep-20) This Week in Crypto:

Sushi swap and the growth of DEXs

  • There’s another new DeFi project in town: Sushi Swap. Sushi Swap is a Uniswap clone that based off of the exact same underlying smart contracts. The platform is run by Chef Nomi who has added a token called $SUSHI which can be earned by depositing Uniswap LP tokens. Currently, roughly 60% of Uniswap’s liquidity has made the jump to Sushi swap, but this is likely to be short-lived as the yields calm. There is some tension between Uniswap creator Hayden Adams and Chef Nomi of SushiSwap. Advocates of Sushi Swap argue that they’ve improved on an open source project and allowed those that kickstart new markets to retain their rewards. On the other hand, Uniswap supporters argue that Sushi swap are opportunists that have cloned 3 years of dev work for a quick profit. This news comes shortly after we reported on Uniswap’s $11m funding round, and we’re therefore expecting investors to be a little nervous about Sushi swap and similar projects that may pop up down the line. Sushi Swap is currently listed on FTX, Binance, and OKEx.
  • Jump Trading, a veteran market maker in both traditional and crypto markets, has backed FTX’s Solana-based DEX, Serum. Having been in the high frequency trading space since 1999, the entry of a bigger player in the world of DEX’s could prove vital in the success of the platform, and the wider DeFi ecosystem going forwards. Jump have previously provided liquidity for the crypto unit of Robinhood back when it launched in 2018.
  • During the month of August, DEX volumes made up 6% of centralised exchange (CEX) volumes. This is compared to 4% in July and 2% the month before. The Block reported that this is the 4th cumulative month that DEX volumes for spot trading have risen (vs. CEXs) and is promising as Vega gear’s up to enter the space.

This Week’s Top Crypto Conversations:

Uniswap on Community VS. Venture Capital (ft. Sushi swap):

https://twitter.com/haydenzadams/status/1300764559154835456

An overview of the total DeFi users by platform:

https://twitter.com/analytics_delta/status/1301398116466225162

A thread on how Ethereum gas is priced:

https://twitter.com/VitalikButerin/status/1300990491241062400

Comparing liquidity mining options in DeFi vs. Hummingbot:

https://hummingbot.io/blog/2020-08-liquidity-mining-hummingbot-vs-defi/

Sign up to Vega’s event next Friday - Deconstructing Derivatives:

https://www.airmeet.com/e/c267a7f0-e2e6-11ea-b46c-5fc7928400a3

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