Try Quests to earn cryptoSwap Volume and Ukraine War
Question 68: How has the Ukraine war affected the swap volume on Sushi and Uniswap? Has there been a surge in demand for a particular token?
The idea behind a DEX is "disintermediation," which means removing middlemen to allow regular people to do business directly with each another. A DEX doesn't offer custody of users’ crypto assets. Instead, users directly hold all their assets in their own wallets at all times.Typically, DEXs do away with conventional exchange order books – where buyers and sellers are matched based on order prices and volume – in favor of "liquidity pools." These are pots of crypto assets sitting under the surface of the exchange, waiting to clear any buy or sell orders that appear. The assets in the pool are sourced from investors, who deposit them in order to earn a yield from transaction fees charged to users of the pool.
SushiSwap was launched in September 2020 by two anonymous developers called Chef Nomi and 0xMaki. It is one of the most popular Decentralized Applications (DApp) on the Ethereum blockchain. SushiSwap adopts the automated market-making (AMM) model for its decentralized exchange (DEX) protocol. Simply put, there is no order book on SushiSwap. Instead, the buying and selling of crypto are facilitated by smart contracts and the price is determined by an algorithm.
SushiSwap began as a fork of Uniswap. It used the code of Uniswap to build its foundation while also introducing some key differences – most notably, rewards are distributed in SUSHI tokens. Liquidity providers on SushiSwap are rewarded with the protocol’s native token SUSHI, which is also a governance token. Unlike Uniswap (UNI), SUSHI holders can continue to earn rewards even after they stop providing liquidity.
The largest DEX is Uniswap, which was created on the Ethereum blockchain in 2018 by a former mechanical engineer who had learned to code only after getting laid off by Siemens the previous year. By late 2021, it was processing transactions worth more than $1 billion each day.
As of February 2022, Uniswap’s version 3 protocol was handling almost $2 billion in trading volume on some days, according to CoinGecko data. It typically manages around three times the volume of its closest DEX competitors, such as PancakeSwap, which usually see $300 million to $600 million in daily volume.
Unfortunately Russia invaded Ukraine on 24 February 2022, now I want to look at how this war is affecting the Dex trading volume.
- On the day of the start of the war, which is 24 Feb, we had a volume increase that was not the case for a long time.
- 10 days before the start of the war the total volume of transactions was around 1.702B and the first 10 days of the war began trading volume was around 1976B so we conclude that the war has affected the volume of transactions and has caused a growth of 200M
when we see the chart of swap volume of uniswap we realize that its volume has grown slightly.Uniswap like sushiswap on the day of the start war had increase volume.The currencies that were always in the highest demand after the start of the war were in the same proportion, and there has been no change in the demand for a particular currency.
Let's take a look at why there should be a change in the trading volume of Dex:
In essence, a DEX is basically a bunch of crypto wallets that are trading with each other. Which leads us to the third big advantage - privacy. Unlike centralized exchanges, a DEX does not necessarily require the user to go through the know your customer (KYC) process, meaning you do not hand over your documents to any one entity, and thereby risk giving access to others if that entity is hacked .
