Uniswap loses 70% of liquidity due to asset migration to the SushiSwap fork

Leading decentralized exchange Uniswap has lost more than 70% of its liquidity as a result of its migration to the SushiSwap fork.

After 48 hours 70% of @UniswapProtocol‘s $2B liquidity has migrated to @SushiSwap. 🦄🔁🍣 #DeFi $SUSHI pic.twitter.com/DZOmMt9RS7

— Alex Saunders 🇦🇺👨‍🔬 (@AlexSaundersAU) September 10, 2020

According to DeFi Pulse, the amount of assets locked in Uniswap over the last 24 hours collapsed by 75.8% to $348 million. The recent leader in this metric among DeFi projects, which rose to the first place largely thanks to the hype around SushiSwap, was ninth in the ranking at the time of writing.

Source: DeFi Pulse.

The fork of Uniswap says that the liquidity volume in the protocol over two days after the migration began reached $1.35 billion.

Source: sushiswap.vision.

Around half of the asset volume on SushiSwap is denominated in Ethereum and the stablecoins USDT and USDC.

Source: sushiswap.vision.

The fork creators initially expected migration of liquidity providers to pools on Uniswap. SushiSwap incentivises them by distributing governance tokens SUSHI.

In the first phase, the fork allowed existing Uniswap liquidity tokens to be deposited into the protocol to earn yield. In the second phase, funds began migrating to pools on SushiSwap.

As Adam Cochran, a partner at Cinneamhain Ventures, said, the CRV pool was the first to migrate successfully.

The first $SUSHI @SushiSwap pool migration ($CRV) was successfully migrated: https://t.co/3ITRFzQ1Is

— Adam Cochran (@AdamScochran) September 9, 2020

Earlier, the protocol administrator under the nickname “Chef Nomi” crashed the price of SUSHI, selling half of the developers’ fund amounting to $27 million in protocol tokens. Users suspected an exit scam.

Transferred control of the platform to its founder and CEO of the exchange FTX, Sam Bankman-Fried, whose team carried out the migration.

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