Uniswap daily volume reaches $25M despite concerns about scams
Daily trading volume on the decentralized exchange (DEX) and the Uniswap liquidity fund increased to $25 million thanks to a strong first day of trading with Ampleforth’s digital asset protocol, AMPL.
ETH-AMPL currently constitutes Uniswap’s largest volume pair, with nearly $2.9 million in trading activity in the last 24 hours. Its last day is the second strongest on record for Uniswap V2, however, the first version of the exchange has seen brief spikes in the hundreds of millions three times in the last 12 months.
Uniswap is rapidly emerging as a DEX leader, with its competitors Kyber Network representing $7.6 million in daily transactions, IDEX registering nearly $1 million in 24 hours, and Binance DEX hosting $730,000 in swaps on the last day.
Although Uniswap volumes look weak compared to the multiple billions traded on the major centralized exchanges, the relative lack of high frequency algorithmic traders and arbitrage bots probably explains much, as does the absence of wash trading.
Fake tokens in Uniswap are trying to take advantage of the DeFi boom
Uniswap warns traders about ERC-20 tokens
However, the increase in Uniswap volumes occurs in the midst of a growing number of scam tokens that are passed off as major decentralized funding protocols (DeFi) and other ERC-20 tokens that exploit the platform’s open list policy.
The proliferation of fake tokens prompted Uniswap to publish a warning about ERC-20 token pairs on its platform. The warning can be read:
„Anyone can create and name any ERC20 token in Ethereum, including creating fake versions of existing tokens and tokens that claim to represent projects that do not have a token. Similar to Etherscan, this site automatically tracks scans for all ERC20 tokens regardless of token integrity. Please do your own research before interacting with any ERC20 token.
Ampleforth Launches Liquidity Program to Target Uniswap 2.0
Kleros hopes to solve the problem of fake tokens
The distributed dispute resolution protocol, Kleros, believes that its fully verified Curated Registry of Tokens (T2CR) token can help eliminate fraud tokens in Uniswap.
Accepted tokens on the list must meet basic standards such as not being associated with malicious addresses and may request badges representing the various qualities of a currency, and will be examined by users.
Ethereum has surpassed Bitcoin in terms of performance in the first half of 2020
Kleros proposes that decentralized exchanges such as Uniswap apply identification requirements for lists, drawing on the wisdom of their crypto community to ensure that high standards are maintained among supported assets.