While the DELTA launch shot up the trading volume on Uniswap very instantly, Uniswap founder Hayden Adams clarified that rebasing the system has solved the matter.
On Monday, Mach 29, the daily trading volume on Uniswap jumped a massive 450% moving past $7.17 billion as per data on Uniswap.io. This was probably the highest recorded volume after its previous record of $2.19 billion on October 26, 2020.
However, it turns out that the massive spurt in trading volume comes with the launch of DELTA. After the launch, DELTA registered a massive $6.13 billion in trading volume within 24 hours. Thus, it was 85% of the total volume despite only $16.4 million in liquidity.
However, Uniswap founder Hayden Adams has come with a strong explanation for the same. Adams also noted that the statistics from DELTA will not count as Uniswap global volume. This is because of a quirk in Delta’s protocol. After rebasing the system, the actual trading volume turned out around $1.05 billion, Thus, the speculations of any “wash trading” have been put to rest.
Not wash trading but not "real" volume either.
Soon will be considered untracked volume on https://t.co/80BxduZqDD
— hayden.eth 🦄 (@haydenzadams) March 29, 2021
The Delta protocol doesn’t sound any alert since DELTA is a very new token. Also, the Ethereum-based DELTA token just launched the previous day. Without staking, investors can only get access to DELTA via the Uniswap protocol.
About Delta Protocol that Pushes Uniswap Trading Volume Higher
The Delta protocol defines itself as an on-chain options layer that uses a combination of different liquidity standards. This helps the protocol to reduce premiums and offer competitive options prices.
In reality, options trading becomes very expensive and volatile in case there’s a shortage of liquidity. The Delta protocol aims to fix exactly this. The Delta protocol is trying to make a difference in the fastly evolving decentralized finance (DeFi) space that lets people trade, earn interest, take loans, and lend all in a decentralized manner without requiring banks.
In an explainer published last month, the Delta team said that it uses a vesting schedule for liquidity. The team wrote:
“When Delta is transferred, a token vesting schedule is activated. 10% of the total token balance is sent to the user while 90% is initially locked and released linearly, over a 2 week period.”
On the other hand, Uniswap has become a go-to destination and decentralized exchange (DEX) for all DeFi tokens. Uniswap has gained massive popularity during the crypto bull run of 2021. The native UNI has climbed the ranks to becoming the eighth-largest cryptocurrency by market cap.