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Home NEWS Uniswap vs Sushiswap: Stories of Vulnerable Assets ...

Uniswap vs Sushiswap: Stories of Vulnerable Assets?

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Uniswap vs Sushiswap: Stories of Vulnerable Assets?

Latest details in the story Uniswap vs Sushiswap is the further drop in the price of SUSHI since the announcement of the vulnerability. The story begins when an anonymous developer decided to fork Uniswap to create Sushiswap, with the launch of the SUSHI token.

Sushiswap and the platform's new token soon shone when it attracted nearly $ 1 billion, the amount secured at the Uniswap platform for liquidity.

After the story of Sushiswap, the exchange DeFi The previous flagship was that Uniswap was also forced to launch a native token (UNI) for its platform. Before the hot "unicorn", two major exchanges like Binance , and Coinbase did not hesitate to list UNI immediately thereafter.

But not long after the rapid growth, the price of SUSHI is witnessing a sharp decline from 7 USD to below 2 USD at the time of writing.

Some crypto experts are currently questioning, can UNI prices exhibit the same drop over time like SUSHI?

Uniswap vs Sushiswap: The main flaw in the system

Uniswap and Sushiswap have been introduced as exchanges that offer freedom to users by keeping transaction fees low and bringing in profits to liquidity providers.

Uniswap used fees for distribution among liquidity providers, while Sushiswap adopted a slightly different method where fees were used to generate SUSHI tokens. These tokens act as a reward for the liquidity providers, bringing a large amount of investors to Sushiswap. The described process is SUSHI mining.

We decided to do both mining models to determine profitability, find out the problems miners are facing, and the results are quite unexpected. Specifically, the results show that after the introduction of the token, both platforms are now in danger of devaluing very rapidly. But what exactly is the problem here?

Each move with these swaps takes too many transactions to actually complete a process. Meanwhile, these transactions increase the load of Ether on miners. At the end of the day, transaction fees can fluctuate and tend to be very high, from a few cents to 150 USD.

They are like a messy never-ending loop. Stake to make money from gas => But stake requires 6 transactions => Makes gas prices go higher - SUSHI / UNI Miner said

So many miners are now wondering who is ultimately benefiting from the liquidity provided by them and why should they continue to support either model?


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