Community Trust ScoreVerified
- Uniswap DEX is creating an illusion of Decentralization
Uniswap Protocol is a fully decentralized permissionless smart contract on Ethereum. Uniswap Interface = open source GPL codebase.
The app.uniswap.org is the Uniswap Labs owned domain that points to an IPFS hosted instance of the Uniswap Interface.
Now is an excellent time for those who are new to learn the differences between an interface and a protocol and how decentralization works.
Decentralization doesn’t mean that Uniswap Labs lets you do whatever you want on its website. Instead, it means you don’t need a single interface instance to access the protocol.
The reality is that majority of the volume does not come through the app. uniswap. This is because of the proliferation of on-chain integrations and alternative interfaces, which consists of: Trading Bots, Wallets, Interface forks due to the OSS interface, and other interfaces DEX Aggregators.
The IMO Uniswap Protocol continues to be the most decentralized of the top Defi protocols by a wide margin. Why? It is non-upgradable and a permissionless smart contract with no admin keys or the ability for UNI holders to steal the underlying liquidity.
Community, after looking into the clarification for decentralization were like, Uniswap is not in the business of decentralizing web hosting. So it’s unsettling that regulatory pressure resulted in this, but the Uniswap protocol contracts cannot be undeployed.
Some feel being non-upgradeable is a feature in this scenario. However, customers look at it as black and white either you’re decentralized, or you’re not. Also, a smart contract is a feature.
Every AMM with its own frontend is clunky. The future is DEX aggregators as it offers both an economic and usability benefit to the user.
Some were like this is a mega dose of Copium. Some government sent you guys an email, and you all got shook at the end of the story.
The problem is UNI token does not have a good use case. So it would help if you focused on adding more value to your token. And the NFT idea is not the best for LPs as it is hard to use staked coins outside the UNI exchange.
This tweet is helpful, but it still seems you avoid telling the truth about what is happening. Are the lawyers saying you can’t even talk about why you did what you did?
If average Joe can’t provide the withdrawal liquidity, then the contracts are as good as useless for these tokens, irrespective of their permissionless characteristics. Do you see any alternative comparable alternatives to the app, ATM? Can’t I think of any?
Most people are pissed not about how “less decentralized” it becomes, but because the team does not care about your own UI’s users, throw the problems back at them and give a speech about how they do not understand decentralization.
Uniswap labs have received funding from Uniswap Protocol, which has made it a simple enough relationship, showing that UNI holders *do* have a say in the labs’ goings and doings. This is antithetical to DAOs, and a clear line must be drawn – enjoy having and eating your cake.
It’s not that decentralized when the top 20 to 40 wallets control UNI token supply used to vote proposals in, and big wallets vote in a slush fund and dump 500k UNI tokens (10 million USD) and murder the price for smaller shareholders.
