Cryptocurrency collateral locked up on Uniswap, the world’s most popular decentralized exchange, has hit an all-time high and is very close to breaking the $3 billion milestone.
Uniswap’s total value locked, which is a measure of crypto collateral in dollar terms, is at an all-time high of $2.84 billion according to metrics from DeFi Pulse.
It is the top ranked DeFi protocol in terms of TVL, leading crypto stalwart MakerDAO which has $2.15 billion in value locked. Uniswap has the greatest market share as a result with just under 23%.
TVL is up another 2% on the day for Uniswap and the total across the entire DeFi sector is also at an all-time high of $12.46 billion. Uniswap collateral originally started to surge in late August when the protocol was cloned by SushiSwap which offered better rewards for yield farming at the time.
Uniswap launched its own ETH based liquidity pools to farm its native UNI token in mid-September and the liquidity has poured in since. Over the past 90 days, TVL on the DEX has surged a monumental 1,600%.
Token Farming Coming to a Close
The four liquidity pools farming UNI tokens hold the lion’s share of liquidity on Uniswap. Around $2.25 billion has been deposited in ETH, stablecoins, and wrapped BTC across these four pools with the wBTC being the most popular holding 38% of the total.
UNI farming will continue until its conclusion on Nov 17. It is likely that this collateral will then leave Uniswap as liquidity farmers seek the next best thing.
This could have an effect on ETH prices if a lot is sold off at a higher price than when it entered the pools. It could also cause a UNI price decrease if the newly earned tokens are all dumped onto the markets. Either way, there could be some volatility next Tuesday when yield farming on the world’s biggest DEX comes to an end.