2020 was an exciting year for the entire cryptocurrency market as we set the stage for a bullish 2021.
The decentralized finance (DeFi) market also had a wild year as the total value locked (TVL) in the sector grew 20 fold to surpass $14 billion.
In the DeFi space, DEX Uniswap Protocol made waves by becoming the first project to exceed $3 billion in TVL. For now, it has fallen to $1.7 billion.
UNI token is also enjoying an uptrend, trading at $5 following a 43% rally over the past week. Currently, UNI is the 22nd largest cryptocurrency with a market cap of $1.34 billion.
Following the “breakout year,” Uniswap is now working on V3 to improve automated market-making (AMM). In its 2021 roadmap, the team shared that they will be exploring scaling solutions for faster and cheaper transactions, with an emphasis on governance.
“V3’s design is driven by a desire to drastically improve the AMM experience for both swappers and LPs, increasing capital efficiency and flexibility while introducing superior execution,” noted the team.
The team also shared a review of 2020, a year in which the Uniswap V2 was launched bringing in support for arbitrary ERC20/ERC20 pairs and flash swaps that has generated $4.8 bln in volume since then, producing $14.4 mln in LP fees.
In the entire last year, the decentralized exchange recorded $58 bln in volume, up 15,000% from 2019’s $390 mln. Uniswap even passed Coinbase on weekly volume albeit briefly.
Over 68,000 unique addresses are currently providing $2bn in liquidity across 27,000 unique trading pairs on the platform.
Just last month, the Uniswap team launched Sybil that uses third-party authentication platforms to make delegating of governance UNI tokens easy.
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