HACKERNOON

The decentralized finance (DeFi) landscape is a dynamic and often cutthroat arena. SushiSwap s TVL exploded by 150% in a day after introducing rewards targeting former Uniswap liquidity providers and 1inch and Bancor are on the hunt too. BTC $57,464 ETH $3,765One of the most dramatic examples of this competitive spirit is unfolding right now, with Uniswap, a leading decentralized exchange (DEX), finding itself under attack.This isn't a literal attack, of course, but a strategic maneuver by rival platforms, often dubbed a ""vampire attack,"" where competitors aggressively siphon away liquidity by offering more enticing incentives. Desde que registr un r cord de $3,07 mil millones de d lares el 14 de noviembre, TVL de Uniswap se ha desplomado 57,5% hasta $1,3 mil millones. Valor total bloqueado de Uniswap: DeFi Pulse Por el contrario, TVL de SushiSwap se ha disparado casi un 160% desde el 17 de noviembre, de $407 millones de d lares a $1,050 millones de d lares.Imagine a flock of vampires descending upon a generous host, and you'll get the picture.Uniswap, having ended its liquidity mining program, has seen a staggering 57% decrease in its Total Value Locked (TVL), a key metric representing the total value of assets deposited on the platform.This exodus isn't happening in a vacuum.Platforms like SushiSwap, Bancor, and 1inch are aggressively increasing their own liquidity mining rewards, luring away Uniswap's former liquidity providers with the promise of greater returns. {{ menus.user.data_crypt.email }} {{item.text}} sharecastThe DeFi world is hyper-competitive, and this situation highlights the importance of constantly innovating and adapting to retain users and liquidity.But what exactly happened, and what does this mean for the future of decentralized exchanges and yield farming?

The End of an Era: Uniswap's Incentive Program Concludes

For a while, Uniswap was the undisputed king of DeFi, boasting a massive TVL and attracting users with its innovative automated market maker (AMM) model.A key driver of this growth was its liquidity mining program, which rewarded users for providing liquidity to specific trading pairs. As the decentralized exchange, Uniswap has let go of its incentive program, the rival market markets like Bancor, 1inch, and SushiSwap have gained control.These rewards, typically distributed in the form of UNI tokens, incentivized users to lock their assets into Uniswap's pools, providing the necessary liquidity for seamless trading.However, this program came to an end on November 17th, 2020. Since posting a record high of $3.07 billion on Nov. 14, Uniswap s TVL has crashed 57.5% down to $1.3 billion. Uniswap TVL: OKLink. By contrast, SushiSwap s TVL has rocketed nearly 160% since Nov. 17, from $407 million to $1.05 billion. It s now up more than 313% since one week ago. SushiSwap TVL: OKLinkThis decision, while perhaps strategically sound in the long term, created a vacuum that rival platforms were quick to exploit.

The impact of ending the liquidity mining program was immediate and significant. The world s top decentralized exchange, Uniswap, is no longer at the top of the total value locked (TVL) list as a liquidity exodus is occurring today. Uniswap is hemorrhaging collateral today as November 17 marks the final day of its liquidity mining program.As the UNI token rewards ceased, liquidity providers began to look elsewhere for more profitable opportunities.This triggered a mass exodus of funds from Uniswap, reflected in the dramatic decline in its TVL. Uniswap loses 57% TVL as rivals up rewards With leading decentralized exchange Uniswap having ceased its yield-farming incentive program, rival automated market makers 1inch, SushiSwap and BancorThe end of the program acted as a green light for competitors to implement their own strategies to attract these now free-roaming assets.

Vampire Attacks: Rivals Feast on Uniswap's Liquidity

With Uniswap's liquidity mining program concluded, rival DEXs seized the opportunity to launch what are commonly referred to as ""vampire attacks."" These attacks involve incentivizing Uniswap's liquidity providers to migrate their assets to their own platforms. Attack of the vampires: Uniswap loses 57% TVL as rivals up rewardsThe strategy is simple: offer higher rewards and better incentives to attract liquidity away from the established leader.

SushiSwap's Aggressive Approach

SushiSwap was arguably the most aggressive in its pursuit of Uniswap's liquidity. Attack of the vampires: Uniswap loses 57% TVL as rivals up rewards . Uniswap loses 57% TVL as rivals up rewards . Open in AppOn the very same day that Uniswap's rewards ended, SushiSwap announced a new incentive scheme targeting the same four trading pairs that were previously incentivized by Uniswap. Attack of the vampires: Uniswap loses 57% TVL as rivals up rewards Novem crypto News 0 Rival decentralized exchanges are upping their liquidity mining rewards to attract Uniswap s former-liquidity providers, leading to SushiSwap s TVL tripling in one week.This was a direct and calculated move to attract Uniswap's liquidity providers.

The results were astonishing.SushiSwap's TVL exploded, increasing by nearly 160% since November 17th, and more than tripling within a week.This rapid growth demonstrated the power of targeted incentives in attracting liquidity in the competitive DeFi space. Attack of the vampires: Uniswap loses 57% TVL as rivals up rewards. Yearn Finance (YFI) Pushes Past $27K after MakerDAO Integration. OKEx to Reopen WithdraIt also highlighted the potential risks of relying solely on short-term incentive programs to build a loyal user base.

Bancor Joins the Fray

Bancor also launched its own ""vampire attack"" campaign, aiming to attract liquidity providers with a liquidity mining program that included retroactive rewards.This meant that even those who had previously provided liquidity to Uniswap could benefit from Bancor's incentives.

Bancor's strategy focused on the long-term sustainability of its liquidity pools. In this conversation. Verified account Protected Tweets @; Suggested usersBy offering incentives and benefits that went beyond short-term yield farming, Bancor aimed to build a more stable and loyal community of liquidity providers.

1inch's Strategic Moves

1inch, a DEX aggregator, also joined the hunt for Uniswap's liquidity. crickettimes.comWhile not as directly aggressive as SushiSwap, 1inch strategically increased its liquidity mining rewards to attract former Uniswap liquidity providers.

1inch's approach leveraged its aggregation capabilities to offer users access to the best trading prices across multiple DEXs, including Uniswap. 10 Thursday October 2025. About; Advertise; Submit Press Release; Contact Us; News. Bitcoin News. Bitcoin News; Bitcoin Cash News; Bitcoin SV NewsBy strategically incentivizing liquidity provision on its platform, 1inch aimed to further enhance its position as a leading DEX aggregator.

Understanding Total Value Locked (TVL) and Its Significance

Total Value Locked (TVL) is a crucial metric in the DeFi space.It represents the total value of assets deposited in a particular protocol or platform.A higher TVL generally indicates greater user adoption, more liquidity, and a stronger overall position in the market. Rivals Like SushiSwap Are Increasing Their Liquidity Mining Rewards, Resulting In A Tri-Fold Increase Of SushiSwap s TVL One of the largest DeFi yield farming protocols, Uniswap, recently suffered from a drastic decrease in the amount of collateralTVL is a key indicator of the health and popularity of a DeFi project.

The decline in Uniswap's TVL and the corresponding increase in the TVLs of SushiSwap, Bancor, and 1inch highlight the dynamic nature of the DeFi market. Attack of the vampires: Uniswap loses 57% TVL as rivals up rewards Grand Master 1inch Bancor Liquidity Mining Uniswap Yield Farming NovemLiquidity is constantly flowing between different platforms in search of the best returns, making it essential for protocols to continuously innovate and adapt to remain competitive.

Here's why TVL is so important:

• Indicates User Adoption: A high TVL suggests a significant number of users trust the platform with their assets.
• Reflects Liquidity: Higher TVL typically translates to deeper liquidity, making it easier to execute trades with minimal slippage.
• Signals Platform Health: A growing TVL generally indicates a healthy and thriving platform, while a declining TVL may raise concerns about its long-term viability.
• Attracts More Users: A platform with high TVL and liquidity is more likely to attract new users, creating a positive feedback loop.

Yearn Finance's Rise: An Example of Strategic Integration

While the ""vampire attack"" on Uniswap was a major event, it's important to remember that the DeFi space is constantly evolving.Another notable development was the rise of Yearn Finance (YFI), which saw its price surge after integrating with MakerDAO.

Yearn Finance is a yield aggregator that automatically optimizes users' returns by moving their assets between different DeFi protocols.Its integration with MakerDAO allowed users to earn higher yields on their DAI stablecoins, driving increased demand for YFI tokens.

This example demonstrates the importance of strategic partnerships and integrations in the DeFi space.By collaborating with other protocols, projects can create new opportunities for users and drive growth for their own platforms.

OKEx Reopens Withdrawals: A Sign of Market Recovery?

Another significant event that impacted the cryptocurrency market was the reopening of withdrawals on the OKEx exchange.OKEx, a major cryptocurrency exchange, had previously suspended withdrawals due to an ongoing investigation.

The reopening of withdrawals was a positive sign for the market, as it restored confidence in the exchange and allowed users to access their funds. Blockcast.cc is a broadcasting news source for the blockchain community. Founded in Singapore. We have a network of partners in China, Hong Kong, South Korea, Singapore and MalaysThis event highlights the importance of regulatory compliance and transparency in the cryptocurrency industry.

What Can Uniswap Do to Recover?

The loss of TVL is a significant blow to Uniswap, but it's not the end of the road. Skip to main content Bitcoin Insider. MenuUniswap still holds a strong position in the DeFi market, thanks to its innovative technology and large user base. Menu. Home; Bitcoin Chart; Cryptocurrency News; Live PricesThe question is, how can Uniswap regain its lost ground?

Here are some potential strategies:

• Reinstate Liquidity Mining Rewards: One of the most obvious solutions is to reinstate liquidity mining rewards, perhaps with a more sustainable and long-term focus.A new governance proposal sought to do just this, proposing to reinstate rewards in the form of UNI tokens for liquidity.
• Focus on Innovation: Uniswap should continue to innovate and develop new features to attract and retain users.This could include developing new trading tools, improving the user interface, or integrating with other DeFi protocols.
• Strengthen Community Engagement: Building a strong and active community is essential for the long-term success of any DeFi project. - Bitcoin fluctuates around $ 17,800. - The Interchange: MicroStrategy s first mover advantage into bitcoin as corporate treasury is already demonstrating eye-watering results (Link). - Attack of the vampires: Uniswap loses 57% TVL as rivals up rewarUniswap should focus on engaging with its users and soliciting feedback to improve the platform.
• Explore Strategic Partnerships: Collaborating with other DeFi protocols can create new opportunities for users and drive growth for Uniswap.
• Reduce Trading Fees: Consider slightly lowering trading fees on selected pools to attract more volume.A small decrease could make a big difference for attracting arbitrage traders.

The Future of Decentralized Exchanges

The ""vampire attack"" on Uniswap highlights the competitive and dynamic nature of the DeFi market.It also underscores the importance of constantly innovating and adapting to remain competitive. However, SushiSwap was not the only DeFi protocol to receive a welcoming boost after the cease of Uniswap s liquidity farming incentives. Bancor, for example, launched a vampire attack campaign, aimed at sucking out the free-roaming liquidity providers with a liquidity mining program, including retroactive rewards.The future of decentralized exchanges will likely be shaped by the following factors:

• Scalability: As the DeFi market grows, scalability will become increasingly important. Em 17 de novembro, o mesmo dia em que as recompensas da Uniswap terminaram, o criador de mercado automatizado e clonado SushiSwap anunciou um novo esquema de incentivos para os mesmos quatro pares anteriormente incentivados pela Uniswap. O valor total alocado (TVL) da Uniswap despencou em mais de US$ 1 bilh o em menos de 24 horas naquele diaDEXs need to be able to handle a large volume of transactions without compromising performance or security.
• User Experience: Making DEXs more user-friendly and accessible is essential for attracting mainstream adoption.
• Interoperability: The ability to seamlessly interact with other DeFi protocols will be crucial for the growth of the DeFi ecosystem.
• Regulation: The regulatory landscape for DeFi is still evolving. With leading decentralized exchange Uniswap having ceased its yield-farming incentive program, rival automated market makers 1inch, SushiSwap and Bancor are snapping up liquidityDEXs need to be prepared to adapt to new regulations as they emerge.
• Security: Security is paramount in the DeFi space. Attack of the vampires: Uniswap loses 57% TVL as rivals up rewards their liquidity mining rewards to attract Uniswap s former-liquidity providers, leading to SushiSwap s TVL tripling inDEXs must prioritize security to protect users' funds from hacks and exploits.

Addressing Common Questions

What is a vampire attack in DeFi?

A vampire attack is a strategy used by a new or smaller DeFi protocol to attract liquidity away from a larger, more established protocol.This is typically achieved by offering higher rewards or incentives to liquidity providers who migrate their assets to the new platform.

Why did Uniswap's TVL drop so dramatically?

Uniswap's TVL dropped significantly after its liquidity mining program ended.This program rewarded users with UNI tokens for providing liquidity, and when the rewards stopped, many users moved their assets to other platforms offering higher incentives.

Is Uniswap dead?

No, Uniswap is far from dead.It remains one of the most popular and well-respected DEXs in the DeFi space.While the loss of TVL is a setback, Uniswap has a strong team, innovative technology, and a large user base. Major cloud computing and virtual machine firm VMware has launched VMware Blockchain, an enterprise-ready blockchain platform.[BREAK] Owned by Dell, the billion-dollar company first teased the blockchain's development in 2025 through its Project Concord, promising an enterprise-grade platform that can enable secure inter-organization data sharing.[BREAK] VMware joins the ranks of IBM and otherIt is likely to adapt and rebound in the future.

What are the risks of participating in liquidity mining programs?

Liquidity mining programs can be risky.Some of the potential risks include:

1. Impermanent Loss: This occurs when the value of the assets you provide as liquidity changes, resulting in a loss compared to simply holding the assets.
2. Smart Contract Risk: There is always a risk that the smart contracts governing the liquidity pool could be hacked or exploited.
3. Rug Pulls: In some cases, the developers of a new project may disappear with users' funds, leaving liquidity providers with nothing.
4. Regulatory Risk: The regulatory landscape for DeFi is still evolving, and there is a risk that new regulations could negatively impact liquidity mining programs.

Conclusion: The DeFi Battle Continues

The ""attack of the vampires"" on Uniswap serves as a potent reminder of the relentless competition and constant evolution within the decentralized finance ecosystem.While Uniswap experienced a significant loss of TVL following the conclusion of its incentive program, it's crucial to remember that this is just one chapter in the ongoing story of DeFi.The emergence of platforms like SushiSwap, Bancor, and 1inch, all vying for liquidity and market share, demonstrates the dynamism and innovation that characterize this space. Attack of the vampires: Uniswap loses 57% TVL as rivals up rewards token holders pounced on a new governance proposal that sought to reinstate rewards in the form of UNI tokens for liquidityThe key takeaways from this situation are several: incentive programs can be effective for attracting liquidity, but they are not a sustainable long-term solution; continuous innovation and adaptation are essential for survival; and community engagement and strategic partnerships are crucial for building a resilient and thriving platform.Ultimately, the ""attack of the vampires"" is a challenge that Uniswap must overcome, and the strategies it employs to regain its dominance will undoubtedly shape the future of decentralized exchanges.The DeFi world is a battleground, and only the most adaptable and innovative will survive.One thing is certain: the quest for yield will continue to drive innovation and competition in the DeFi space for years to come.