https://ift.tt/2GI5bUv you've all probably heard, there have been some questionable decisions done on the centralized uniswap frontend website, registered in Boston and operated by Hayden and his team. The website has been hard-coded so that whenever you swap any two tokens, you are getting routed ONLY through WETH, DAI, USDC, USDT, COMP and MKR.This results in a price disparity between the different pairs which allows vampiric "arbitrage" bots to swoop in and extract ETH from liquidity pairs. Do note that this is not "typical" arbitrage, this arbitrage comes from the fact that users are getting routed through sub-optimal coin routes, which means the profit that the bots receive comes from the fact that Uniswap users are getting overcharged, i.e you pay more money than you would have paid for the same amount of coins had you gone through the optimal route.On one such bot you can see 24k transactions in 11 days with over 371 ether collected. In the last 18 hours, this bot alone has collected over 20 ether from Uniswap traders and liquidity providers.However, that's not the end of it. Uniswap's team and Hayden are straight up denying this problem even exists, and messages about it are getting deleted from Discord and people are getting threats of bans. This raises a very obvious question - are Hayden and the rest of the team actually the ones who are running these bots and sapping the liquidity providers and coins themselves for their own vampiric gains? Why else would they be covering this up instead of swiftly working to fix it? It's their own service that's suffering and one temporary solution that's been suggested to the Uniswap team is to revert to routing only through ETH, which is the way it's been done in Uniswap V1. Instead, the team is denying any problems and deleting messages that raise it up.For end users, an obvious solution is to switch to a different DEX. However, Uniswap is leading by far in terms of liquidity. Another possible solution would be to switch to a Uniswap frontend that correctly routes through the optimal liquidity pairs. It is definitely no surprise that in the last few hours Metamask has come out and claimed they will be adding a token swap feature to Metamask.The Metamask token swap feature seems to automatically swap your coins using Uniswap, Kyber, 0x API, 1inch.exchange, and more, depending on which one is the most profitable for the user. I would urge everyone here to stop using the app.uniswap.org frontend, and switch to using Metamask's DEX swap feature, 1inch.exchange, or some other service.And if you are wondering why all tokens are dumping so much....
Submitted October 07, 2020 at 11:02PM
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