Sushiswap migrated crypto assets worth $1 billion from Uniswap
Uniswap lost major liquidity within no time but TVL remains unchanged
The liquidity that migrated on Sushiswap maybe, in turn, a locust
Sushiswap Took Their Liquidity Locusts With Them
The fork of Uniswap protocol, Sushiswap recently migrated $1 billion worth crypto assets to its own protocol. In the due process, over a billion USD was drained out from the Uniswap decentralized exchange.
However, Andre Cronje, the brain behind yearn.finance (YFI) DeFi token, has stated that the TVL of Uniswap remains unchanged. As per him, the Total Value Locked(TVL) pre and post-Sushiswap remains same on Uniswap.
“The narrative that Sushiswap took TVL from Uniswap Protocol is simply false,” he said
In fact, he termed the liquidity as ‘locusts’ that swing from place to place devouring all the protocols, till it gets depleted. In simple terms, he represented those chunk of masses that exploit short term yield farming. The rewards that attract them would be the next position for migration.
Uniswap vs Sushiswap-Who Will Be the Winner?
Uniswap had reached the heights of daily trading volume in the past week surpassing the volume of coinbase. It had less than $300 in liquidity before the Sushiswap initiated its migration of over $1billion crypto assets.
Moreover, the liquidity on the Uniswap protocol post the migration increased by $200 million as per the user SushiWithoutChef. Currently, Uniswap’s liquidity records around $534 million, without considering Sushiswap’s $1 billion.
Collectively, the liquidity which migrated from Uniswap to Sushiswap may not have left a major impact on Uniswap. The migrated masses or locust as Andre Cronje said may fly to other destination in search of new attractive farms. However, we need to sit back and watch for the upcoming occurrences.