The rise of decentralized 'DeFi' finance in the market for cryptocurrencies leveraged on decentralized exchanges has been a real explosion over the past few months.
According to DeFiPulse, this sector has already passed the barrier of USD 20 billion in Total Blocked Value «TVL», which has been a meteoric growth when compared to the few more than 600 million dollars that existed in the DeFi in TVL for the month of December 2019.
Only in the last quarter of 2020, the TVL in DeFi doubled, going from USD 10.02B to the current value reported by DeFiPulse. And much of this growth has to do with the use of decentralized exchanges such as Uniswap, which leads its line, with USD 2.58B, a growth of +7.4%.
Its success lies in its simple interface, its decentralized and dedicated open source, which enables the provision of automated liquidity «LP» for Ethereum token trading pairs.
Since its launch in November 2018, the exchange has not stopped growing, allowing liquidity providers to receive lucrative rewards by providing an equal value of the ETH and ERC-20 tokens to the Uniswap exchange contract.
Liquidity Providers: The key
The liquidity providers “LP“ are the linchpin on the Uniswap exchange, allowing your contract to run as planned. The platform requires a large amount of liquidity to function effectively, so these actors are helpful in enhancing the liquidity pool of the platform by providing equal ETH and ERC-20 token values.
Liquidity providers receive a proportional split of transaction fees for all existing operations. They also have access to numerous trading pairs, each with different terms and rewards.
Because Uniswap is the most trusted, respected and market leading decentralized exchange protocol and DeFi products, we are giving you 5 tokens that promise to maximize profits for liquidity providers in a very short time.
Ether Wrapped «wETH»
At the top of the tokens within Uniswap, by the liquidity metric we find Ether Wrapped «wETH», an ERC-20 token that was created to facilitate blockchain interoperability and the exchange for other tokens of the ERC-20 standard.
In Uniswap it is not surprising that wETH is the leader at the time of writing this note, since Ethereum is in a bullish phase and there are many demands on the DEX to access Vitalik Buterin's currency through ERC-20 tokens.
Statistics Uniswap wETH
- Total Liquidity: $1.18B
- Volume (24hrs): $812.61M
- Transactions (24hrs): 121,636
- Top-Pair: wBTC-ETH ($160,291)
USD Coin «USDC»
The stablecoin occupies the second position in the ranking of the tokens with the best liquidity in Uniswap and the first position in terms of stable coin options, above DAI and Tether USD inclusive.
The Ethereum-based, dollar-pegged stablecoin has had an interesting performance in recent months on Uniswap, as institutional investors flock to the decentralized Uniswap exchange.
With the support of Circle and Coinbase, it is natural to observe that many users of the exchange giant are using the stablecoin as a bridge to access ETH from their wallets through the USDC-ETH pair, which behaves as the second best liquidity pair in Uniswap.
Uniswap USDC Statistics
- Total Liquidity: $ 248.6M
- Volume (24hrs): $ 191.72M
- Transactions (24hrs): 17,246
- Top-Pair: USDC-ETH ($ 224.17M)
Kira Network «KEX»
The native token of the Kira Network platform focused on blockchain interoperability and the generation of passive income by liquid staking of any type of asset (Fiat, Crypto, NFT, Metals) within its protocol, is an alternative that is becoming increasingly Most popular with traders and liquidity providers.
Recently the team behind Kira Network signaled the extension of its liquidity program with one million KEX tokens for a period of 30 days.
Its particular proposal has allowed that in just one month, the transaction metrics and volume traded of the token in Uniswap, go above five digits.
Its KEX-ETH trading pair has lucrative returns with up to 259% liquidity.
Statistics Uniswap KEX
- Total Liquidity: $ 948k
- Volume (24hrs): $ 211k
- Transactions (24hrs): 78
- Top-Pair: KEX-ETH ($ 1.8M)
Ranked among the top sixty Uniswap tokens, the YFI technology independent protocol YFIM token is earned as a reward for transferring funds from one asset to another on the DEX.
The protocol provides different functionalities to DeFi users when transferring their digital assets to the liquidity pool. In addition, YFI.mobi enables yield farming, a new method of generating profits in a decentralized way that turned out to be quite effective in growing investments in a short time, causing part of the frenzy that exists today in DeFi.
Its trading pair YFIM-ETH has lucrative returns with up to 110% liquidity.
Uniswap YFIM Statistics
- Total Liquidity: $ 2.3M
- Volume (24hrs): $ 79,590
- Transactions (24hrs): 83
- Top-Pair: YFIM-ETH ($ 4.78M)
Aave Token «AAVE»
The token of one of the most popular decentralized lending platforms in the DeFi ecosystem. Aave is another great token for liquidity providers to consider.
Located within the top30 of the best on Uniswap, the Aave token has gained great popularity this year as the platform is one of the first to receive an Electronic Money Institution "EMI" license from the Financial Conduct Authority of the UK.
With this license, the opportunities to expand its services and attract new potential investors on its platform were demonstrated in the last bullish rally that the token had a couple of days ago in the markets.
The AAVE-ETH trading pair has lucrative returns with up to 72% liquidity.
Uniswap YFIM Statistics
- Total Liquidity: $ 11.16M
- Volume (24hrs): $ 7.3M
- Transactions (24hrs): 530
- Top-Pair: YFIM-ETH ($ 22.37M)
Remember this is not a financial notice. Any investment carries its risk and should be made under your own investigation and responsibility.