Uniswap is one of the most liquid decentralized exchanges, but yesterday the 17th of November experienced a massive hemorrhage in terms of liquidity.

In less than 24 hours, more than one billion dollars of Uniswap’s liquidity came out, or about 40% of the total liquidity of the platform, and thus Uniswap fell to the third place in terms of the volume of funds deposited and locked into TVL.

It was expected that this would happen to Uniswap if the platform management did not intervene and vote on the future of “yield farming” before the pools expired.

As those pools will dry up quickly as funds and liquidity move elsewhere, liquidity has already begun to migrate to the Uniswap platform, where liquidity has decreased from approximately $2.5 billion to only $960 million.

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According to Defipulse, more than 1.3 million ETH, worth an estimated $624 million at today’s prices, have exited the platform.

Take a quick survey:

After seeing the amount of funds coming out of Uniswap, Uniswap management set up an emergency survey to gauge whether the community wanted to receive distributions of their UNI coins or continue to lock their UNI coins onto the platform.

The community proposal was for the option to continue UNI bonuses at a reduced rate.

This comes with a weak signal Tweet embed Vote to gauge community morale regarding ongoing rewards.

If the temperature check passes a minimum of 25,000 UNI, a second consensus vote will be published to finalize the details of the proposal.

– Coopahtroopa 🔥_🔥 (Cooopahtroopa) November 16, 2020

According to to source Some whales with more than 30,000 UNI coins influenced the vote to suggest the option to continue holding UNI coins and getting rewards.

According to Uniswap platform management:

The objective of this option is to maintain the status quo, using reduced incentives as a means of continuing to distribute as we look to improve allocations over the medium term.

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If successful, a second proposal is to extend the incentives for “yield farming” for an additional two months but at half the current distribution rate.

i.e. UNI Cryptocurrency Distribution for an additional two months from the time this proposal is approved and implemented by the Governance.

It will be distributed to the same four groups, but at half the rate of the first distribution.

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The platform administration added that the express poll will be valid for 3 days, and if it is passed with the support of at least 25,000 UNI, the proposal will move to the consensus verification stage.

Uniswap is no longer the top DeFi protocol:

The largest project in decentralized finance became “Maker” as the project took the lead with its market dominance at 18%.

In second place is wBTC with a TVL locked value of just over $2 billion while Uniswap just slipped to third place.

The price of the digital currency UNI remains stable and stable today with the coin recording a price of $3.52 knowing that it has not yet been distributed.

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