An uncomfortable truth that this industry needs to address is the level of wash-trading that occurs on some of these DEXs.
Look at the top Uniswap pools on Ethereum for November. Do you believe GOLDEN-WETH is doing over $5b in legit trading volume with 14 unique traders, anon?
For the GOLDEN-WETH pool, 1 address is responsible for $1.8b of trading volume on November 1 (lol).
When you have a DEX with no protocol fee capture (such as Uniswap before the fee switch), you can LP and trade on the same pool without worrying about losing any of your capital.
This fee switch will probably cause wash-traders to move away from Uniswap (or move to 1bp or less pools), as value will leak to Uniswap now with V2 and V3.
Removing these pools from the Ethereum data, projected revenue for the last 30 days is around $9m.
When you remove memecoin pools (some that are legit and some that passed our wash-trading filter), you get around $6m for the past 30 days.
A nice side effect of buybacks is that you get to see how much value is actually captured, and not just accrued in a pool. I think some people will be in a surprise when buybacks go live and the numbers are drastically different than the numbers that are floating around today.
Look at the top Uniswap pools on Ethereum for November. Do you believe GOLDEN-WETH is doing over $5b in legit trading volume with 14 unique traders, anon?
For the GOLDEN-WETH pool, 1 address is responsible for $1.8b of trading volume on November 1 (lol).
When you have a DEX with no protocol fee capture (such as Uniswap before the fee switch), you can LP and trade on the same pool without worrying about losing any of your capital.
This fee switch will probably cause wash-traders to move away from Uniswap (or move to 1bp or less pools), as value will leak to Uniswap now with V2 and V3.
Removing these pools from the Ethereum data, projected revenue for the last 30 days is around $9m.
When you remove memecoin pools (some that are legit and some that passed our wash-trading filter), you get around $6m for the past 30 days.
A nice side effect of buybacks is that you get to see how much value is actually captured, and not just accrued in a pool. I think some people will be in a surprise when buybacks go live and the numbers are drastically different than the numbers that are floating around today.
See a similar viewpoint but for Base:
https://x.com/jpn_memelord/status/1988047655780442410
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