Hayden Adams, the creator of Uniswap, was just 23 years old from suburban New York in 2017 when he was laid off from his position as an engineer at Siemens.
Adams started writing an app from scratch, and his friend built a nice new UI for Uniswap on top of what he described as an “incredibly crappy” React code base.
Fast forward five years, and Uniswap has still managed to maintain its position as the leader of the DEX.
Uniswap’s dominance continues
According to Messari’s new report, “Crypto Thesis for 2023,” Uniswap’s V3 iteration has proven to be a “real 10x improvement” in terms of the working capital that decentralized exchanges require to run “reliable, low-slippery” operations.
Existing automated market makers have failed to overcome many challenges. For example, the settlement of PankcakeSwap transactions is completely centralized and based on a close relationship with the famous CEX – Binance. In addition, Terra’s collapse affected Osmosis severely, while the self-sacrifice of FTX killed the serum.
With AMM DEXs busy grappling with their own unique challenges, Messari reports that getting rid of Uniswap with token scams or marginal price improvements may not happen anytime soon. Ryan Selkis, founder of the market intelligence firm, believes Uniswap could be an “irreplaceable protocol” for AMM.
“You don’t compete on fees, you compete on value, and Uniswap has proven that Uniswap is Uniswap’s biggest competitor when it comes to creating additional value for its users. The only question I have for 2023 is how the community will design and implement protocol fee transfer, where UNI token holders will vote (finally) to direct a portion of the protocol trading fee to the treasury.”
In 2022, Uniswap raised $165 million in a $1.7 billion Series B round. DEX has become a unicorn after receiving support from Polychain Capital, including Andreessen Horowitz, Paradigm, SV Angel, and Variant Fund. That same year, his venture capital arm entered the NFT space, announcing a partnership with crypto payment processor MoonPay where he upped his game with a new fiat integration.
Biggest waste of gas
Uniswap V3 became the most popular Ethereum contract in 2022, ranking first in terms of total gas used over the year. data He points out that the latest version of the popular DEX used 2.8 million gas, which is more than three times the amount of gas consumed in last year’s V2.
The V2 iteration also saw 17% of its transactions reversed, the highest of all major Ethereum contracts.
Overall, Uniswap recorded a whopping 15.5 million transactions as it overtook the NFT market of the NFT company and the NFT giant itself. Meanwhile, V3 took the top spot with over 1.5 million unique addresses, higher than any other decentralized Ethereum application.
Posted here is Uniswap’s biggest competitor according to Messari that debuted on CryptoPotato.