The DeFi market is still in its infancy. That’s why many startups are difficult to evaluate regarding survival over the long haul. Uniswap is one of the most promising projects in this field, as shown by the Uniswap live price chart. Positive news about the project comes out regularly on letizo.com.
The reason is that this is an infrastructure project. This is a decentralized trading platform, which just hosts the tokens of new DeFi projects. The latter are often not yet included in the listings of large centralized crypto-exchanges. Therefore, even if some DeFi-projects disappear, the trading platform where their tokens are traded is likely to continue operating.
It is necessary to see whether the project is really decentralized and able to continue to exist even if the founding team disintegrates. Other things to look out for:
- Whether the source code is open.
- Whether the project has undergone an independent technical audit.
Decentralized Finance Market
The decentralized finance market is an ecosystem of various financial services. Their main difference from classical services is the absence of a single central body, which manages the working processes at its own discretion.
A decentralized approach significantly increases the level of community trust in such projects. As an example, which embodies the positive sides of the approach, we will take the largest decentralized service of cryptocurrency exchange Uniswap.
The essence of this service is that some people on it can exchange cryptocurrency and pay a commission for this, and other people can provide the opportunity to exchange cryptocurrency and for this they get a reward from the commission paid by other users.
The possibility of getting rewards simply by providing capital as an investment tool has really appealed to people. Thiscan explain the willingness to provide capital to the service from members of the cryptocurrency community. Uniswap token prices were growing steadily against this background.
Users were assured that it was safe to transfer capital to such a service because it was not a person or company that kept the funds. But a program that worked according to a strictly defined algorithm. Assets cannot be simply stolen or used for other purposes, because the program code does not provide for such actions.
SushiSwap
The Uniswap service has recently got a competitor – SushiSwap. Its team has created a similar trading platform. Users of the new decentralized exchange were offered higher rewards and some new features. An important difference between SushiSwap and Uniswap was the presence of its own management token.
This made SushiSwap even more decentralized than Uniswap. Management tokens can be compared to shares in publicly traded companies, where each owner of an asset has the right to vote and can influence the decisions of the company’s managers. The SushiSwap team had a specific goal – to poach investors from Uniswap by giving them more income. The developers succeeded.
Fast token listing on major exchanges confirms high demand, interest in UNI and the cryptocurrency community’s trust in Uniswap, as well as reflects investors’ faith in Uniswap’s growth prospects. If you don’t want to complicate your life by learning all the nuances, consider the Vechain live price chart for investing. Analysts give a positive Vechain price prediction.
Uniswap price prediction
Right now, the UNI token, by itself, is not generating any income. But the Uniswap price prediction looks optimistic. There is a very high speculative component in its price because of a HYIP. This all increases the risks of investing in such a token. But the high risk and HYIP usually do not scare investors with an aggressive risk strategy, because it is compensated by the high expected return of such investments.