The US regulator takes on the largest decentralized crypto exchange – or is it?
That Wall Street Journal reported on September 3 that the SEC (Securities and Exchange Commission) opened an investigation into Uniswap Labs. Uniswap already emphasized the willingness to cooperate with any assessment. In addition, the company declared its commitment to consistently meet the crypto exchange requirements.
Questions to Uniswap
The most powerful securities regulator in the world is doing this Wall Street Journal mainly about two things:
- How do investors use Uniswap?
- How does the company market itself?
The investigation is currently still in the early stages on both questions. Accordingly, it could even be that the stock exchange regulator ultimately does not raise any allegations at all. Even if the UNI rate only lost a little recently, more precisely between September 2nd and 4th, it has already risen by 3.45 percent in the last 24 hours alone, which suggests that those who hold so far have shown confidence have retained in the company.
What is Uniswap’s offer?
According to the company’s website, the company is concerned with: “[to] Swap, earn, and build on the leading decentralized crypto trading protocol ”. More specifically, this means that the company will provide the following three options:
- “Swap” function: enables different ERC-20 tokens to be exchanged
- “Earn” function: Guarantee of capital increase for liquidity provision: The deposit of tokens is rewarded by the transaction fees
- “Build” function: Creation of DeFi applications on the Uniswap protocol
The second function in particular has made some headlines in recent months, which BTC-ECHO also reported on. Since Uniswap changed the protocol from V2 to V3, the liquidity providers in particular have been guaranteed greater security. This is due, among other things, to the ERC-721-NFT, but also to different pools introduced in May for each pair of tokens. These pools currently have three different fee levels of 0.05 percent, 0.3 percent and 0.5 percent.
The company with the unicorn in its logo is the most popular and currently largest decentralized cryptocurrency exchange. Since the start of the V2 in May 2020, according to the company, it has won over 1.5 million active users and reached a trading volume of 386 billion US dollars. Uniswap is based on the Ethereum Blockchain and was founded in November 2018. Uniswap currently has around 21 percent market share (as of September 6, 2021, 11:15 a.m., source: CoinMarketCap).