Uniswap and SushiSwap have emerged as two of the top decentralized exchanges (DEXs) that are leading the current DeFi bull run higher.
Despite a controversial start for SushiSwap, the last few months have seen it catching up to Uniswap in terms of activity on the platform, total value locked, and the price of its SUSHI governance token.
A recent report from Delphi Digital took a closer look at the two projects and broke down the fundamental differences in the way that each has diverged in their development since SushiSwap’s vampire attack on Uniswap.
SushiSwap originally emerged as a fork of Uniswap v2 with the inclusion of the SUSHI governance token which was distributed to participants of the community.
At the time, Uniswap had yet to launch the UNI token which would subsequently be airdropped to users who had interacted with the protocol either by trading or providing liquidity.
While UNI had likely been planned for release at some point, many saw the surprise airdrop as being a bid to stop a potential vampire attack that would drain the liquidity from Uniswap to SushiSwap.
After a bumpy start which saw SushiSwap co-creator Chef Nomi dump all of his SUSHI tokens on the market for $14 million worth of Ether (ETH), only to later return those funds to the treasury, SushiSwap co-founder ‘0xMaki’ took over as the lead on the project and helped it to correct course and become a viable contender among DeFi platforms.
When it comes to comparing the original token distribution, 65% of the original UNI supply was distributed to the community through liquidity mining and a governance-controlled treasury versus 80% of all SUSHI tokens.
In this regard, the SushiSwap platform has emerged as a more community-controlled project that is self-funded with 9% of all SUSHI emitted from the system awarded to the treasury. In contrast, Uniswap has received some VC backing with a total of $12 million being raised from various sources to help fund future development.
SushiSwap is more decentralized than Uniswap
Differences in the path of development began soon after the fork and led to two distinct platforms that offered a different experience. The excitement continues to build for the release of Uniswap v3, although only a handful of insiders know exactly what the new version will entail.
While users and token holders trust the lead developers which have created an incredible interface thus far, many in the cryptocurrency space prefer a project with more transparency and community involvement.
SushiSwap keeps more to the community ethos of cryptocurrency in this way, with a core team of developers that is more transparent about what is coming and where the project is headed in the future.
SushiSwap also has established an effective governance system that allows community members to have a say in important decisions. The governance system for Uniswap is less conducive to community involvement, which could be the result of the rushed release of the UNI token and a desire to create a solid foundation before integrating community governance.
Divergence in value proposition and community involvement
Over the past few months, the Uniswap team has been focused on building out v3. As Delphi Digital pointed out, Uniswap’s first-mover advantage has provided the platform with a bevy of integrations as the platform was sought out by projects across the sector for the liquidity it provided.
SushiSwap on the other hand has been busy establishing connections with other burgeoning DeFi platforms, most notably the yEarn ecosystem which includes yEarn, Cream, Pickle, Cover, and Alpha. This will help increase the use of SushiSwap’s liquidity offerings and help make the platform more resilient to upcoming challenges.
More recently, SushiSwap has begun to incentivize liquidity for longer tail assets as it looks to establish itself as a place to get access to projects with long term viability. In contrast, Uniswap has been a way for new projects to get a head start on liquidity and community exposure.
One of the most significant differences between the two platforms relates to cash flow generation.
In March of 2021, the UNI community will have the ability to divert 0.05% of all fees on the platform to the Uniswap treasury which is governed by the UNI token. The fees will accrue in the treasury and UNI token holders will be able to vote on what to do with those funds in the future.
SushiSwap has had the 0.05% fee in place since it was created in September 2020 and the governance council agreed that the money generated is used to purchase SUSHI directly and award it to stakers, providing a source of direct income.
In terms of fees generated, Uniswap clearly comes out on top for the time being. With a larger number of available trading pairs and huge liquidity pools for top coins, the Uniswap platform sees higher volumes and this translates into more cash flow for liquidity pools and UNI token holders.
But with fees going to a treasury rather than directly to token holders, UNI has been more appealing to investors with a longer-term outlook who prefer the approach of “accumulating capital in the treasury during the early years.”
So SushiSwap offers a more community-oriented and governed system that provides direct income to token holders from fees generated on the platform while Uniswap is working on a long term plan to create a one-stop DEX that meets every traders’ needs.
First mover advantage and dominant liquidity pools have allowed Uniswap to compete with the likes of Coinbase in terms of trading volume and long-time cryptocurrency advocates appreciate this accomplishment.
SushiSwap has risen from the ashes to create a community-driven project that those just getting into crypto can appreciate for its ability to generate immediate income.
SUSHI has also seen a recent spike in trading volume on Uniswap, showing that the fight for the title of top DEX is just getting started in these early rounds of the crypto bull cycle.
The DeFi sector is just beginning to gain attention from the traditional financial sector and as the liquidity, total value locked and price of each platform’s governance token reaches new highs for both Uniswap and SushiSwap it will be interesting to watch as the two platforms continue to diverge in development.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
$97B retail firm uses IBM blockchain to track food supply
IBM’s food-tracking blockchain technology will be used by the Carrefour multinational retail firm to track food supply lines from the farm to the store. An agreement between Majid Al Futtaim — the firm that operates Carrefour in the Middle East — and IBM will see the retail giant use the IBM Food Trust initially to track two food categories: chicken and microgreens.
The IBM Food Trust is a blockchain-specific platform designed for the food industry, hosted on the IBM Cloud. Carrefour, which recorded $97 billion in revenue in 2019, will enable customers to scan QR codes on the products in question, and receive extensive information about their entire production process, according to a report by Gulf Business.
Relevant information will include product origin, date of production, transportation data, ingredients, health and halal certifications, nutrition stats, and temperature data.
Gulf Business references a recent IBM Institute for Business survey which revealed 73% of respondents sought better traceability methods for their products. Notably, 71% of respondents said they’d be willing to pay extra for services that provide it.
The CEO of Majid Al Futtaim Retail, Hani Weiss, said trust in global food supply chains was becoming an important issue — one spurred on by the outbreak of COVID-19:
“Trust in the food supply is becoming increasingly important worldwide, a trend accelerated by changing consumer demands and the subsequent health and wellbeing concerns arising from the Covid-19 pandemic.”
Weiss said the use of blockchain technology would improve operational efficiency, and build stronger customer trust and loyalty.
“It is therefore imperative for us to invest in ensuring quality throughout the value chain while simultaneously working to build robust customer trust and loyalty. In meeting the new market expectations, we are now offering enhanced food traceability for our valued Carrefour customers and improved operational efficiency for our business,” said Weiss.
IBM’s Food Trust was first used by Carrefour in November 2019, when it leveraged the blockchain technology to track the supply chain for infants’ milk formulas.
A 2020 report by Cointelegraph Consulting and VeChain suggested $300 billion worth of food would be tracked and traced on the blockchain by 2027. In an industry surprisingly rife with fraud, the use of blockchain tech would reportedly save $100 billion per year by ensuring the products that land in stores are legitimate.
Beeple NFT sells for record $6.6M as bidding for ‘Everydays’ at Christie’s hits $2.2M
Buzzy digital artist Mike Winkelmann, aka Beeple, made NFT history yesterday with his piece, “Crossroads”, netting $6.6 million on the secondary market via Nifty Gateway.
Like many Beeple artworks, Crossroads was inspired by the 2020 U.S. presidential elections. It was designed to feature one of two animations, depending on the outcome of the election — one a triumphant Trump, the other a forgotten, despondent one.
Originally purchased by a user called Pablo for $66,666.60 on Nov 1, the new owner, who chose to remain anonymous, paid almost 100 times more, breaking the price record for a single NFT sale. Previously the record was held by CryptoPunk 6965 which sold last week for 800 ETH, with a sale value of $1.55 million.
Beeple’s work has already captivated art collectors around the world with $3.5 million in sales generated over a single weekend in December on the Nifty Gateway, with some of the artwork being resold the same day at inflated values of more than 1000 times the original price.
Not everyone agrees with the high value being placed on these pieces of digital art with Crypto YouTuber Lark Davis stating Beeple’s $6.6 million NFT sale was a non-sensical purchase:
“This Trump themed #nft just sold for 6.6 million dollars, NFT mania is heating up big time. People showing they have more money than sense.”
The renowned artist is in the process of breaking another record with the first NFT being sold in a traditional auction house. Christie’s is listing the item in partnership with NFT marketplace MarkersPlace for more than two weeks, ending on March 11.
The auction for the piece titled “Everydays: The First 5000 Days”, which started on Feb. 25 for $100, has its estimated value listed as unknown. The listing has already received 120 bids with the latest bid at $2.2 million.
Comprising 5,000 unique images that he produced one each day for almost 14 years, there are themes about society’s obsession with and fear of technology, the desire for and resentment of wealth, and America’s turbulent political scene.
“We’re at this moment in time where there could be a drastic shift—a demographic shift, a generational shift—when it comes to what excites younger collectors,” Christie’s specialist in post-war and contemporary art in charge of the Beeple sale Noah Davis told Art Market Monitor. “Christie’s as an organization is really excited about a moment in time where you see $3.5 million of sales just organically appear out of thin air. That’s something we want to capitalize on.”
Digital artists aren’t the only ones being recognized by this new era of technology with Trevor Jones seeing increased attention for his paintings turned into augmented reality. On Feb. 25 Jones’ open edition art titled “The Bitcoin Angel” sold 4,157 editions within 7 minutes at a price of $777 each, netting the artist more than $3.2 million.
Congratulations to @trevorjonesart
Last night “The Bitcoin Angel” Open Edition closed at 4,157 editions minted for ~3.2M breaking the Open Edition NG record!
— Nifty Gateway (@niftygateway) February 25, 2021
Grammy-winning producer Illmind auctions rights to new samples as NFT
NFTs are being used to explore a new business model that puts music makers back in control of sales and copyright issues. Grammy winning producer Illmind released what he calls the “first ever NFT-backed sample loop/melody pack” on Feb. 25, putting a collection of 10 “melody compositions” up for auction on the Mintable NFT market app.
Based on Ethereum, the NFT is titled “ALORIUM” and contains an exclusive link to a file containing individual audio tracks of the compositions. It also comes with a “royalty-free guarantee” and a contract that gives the NFT owner rights to use the audio files for their own purpose.
— !llmindPutTheLoopOn (@illmindPRODUCER) February 25, 2021
Ramon Ibanga, better known as Illmind, has a successful career as a music producer which spans three decades. He has produced tracks for several best-selling hip hop artists, including Kanye West, Dr. Dre, and 50 Cent. He is also behind tracks on #1 albums by Drake and J Cole. In 2018, he won a Grammy award for his production of “Everything Is Love” by Beyoncé and Jay-Z.
Ibanga’s creation sparked a passionate conversation on Reddit regarding what ownership of digital property implies about rights to creative property. Sentiment generally agreed upon by those responding to the news include that the idea is innovative and potentially transformative for the music industry.
NFT’s are on the way to disrupt how we engage with digital art and commerce, including the music industry. A really interesting space to watch, and kudos to illMind for pushing the boundaries. https://t.co/6ov2j1NUr4
— Luciano Belete (@LucianoBelete) February 25, 2021
“Someone really should make a platform for this,” commented Redditor MuddyFilter, who went on to explain why they thought NFTs could make big waves in the future of the music business.
“This is actually a use case for NFT that I can get behind and that I genuinely think is better than the way it’s currently done. We can pay the creators of the samples directly instead of paying some sample label.”
Musicians have been warming up to the idea of blockchain-based tech over the last year. Some have discovered new ways to connect with other artists, such as Deadmau5 and Sutu, who released an NFT based on collaborative efforts in Dec. 2020. Others have used it to release productions in different media forms, such as Julian Ono Lennon, who sold an NFT artwork piece for $3,000 the same month.
On Feb. 17, DJ 3LAU announced that the top bidder of his upcoming NFT auction will be offered the chance to collaborate with him on a new track.
On Feb. 6, Linkin Park rapper Mike Shinoda auctioned off a clip of an upcoming song in NFT form on Zora, a marketplace for digital items focused on cutting out corporate influence from the entertainment industry.
Surprise announcement about the #HappyEndings #NFT: whoever owns it at 12:30 PST tomorrow will be receiving a *physical, real life* print of the art, signed by me and @caincaser (we created the art together). Let’s see if these #NFTs change hands by then. https://t.co/nxirMUsCvb
— Mike Shinoda (@mikeshinoda) February 18, 2021
On Dec. 17, 2020 dance music producer Guy J put the rights to royalty earnings from one of his songs up for sale on music streaming platform Rocki, with ownership of an NFT conferring rights to 50% of the song’s earnings in perpetuity. The sale managed to raise 40 ETH.
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