Crypto Futures Show Bias for Uniswap's UNI Token After Curve Finance Exploit

UNI perpetual futures trade at 20% premium as traders expect Uniswap to gain even more market share after the CRV exploit, one research head said.

AccessTimeIconJul 31, 2023 at 6:11 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

A multi-million dollar exploit of stablecoin-focused decentralized exchange (DEX) Curve Finance has traders pivoting toward the rival Uniswap's UNI token.

Funding rates in perpetual futures tied to UNI have surged to an annualized 19% in the wake of the exploit, according to data tracked by crypto services provider Matrixport.

A positive funding rate means the perpetual contract's price is trading at a premium to the mark price or the estimated true value of a contract, also known as "marking-to-market." Positive rates also indicate longs or traders holding leveraged buy positions are dominating and willing to pay funding to shorts to keep their positions open.

"The UNI token [perpetuals] trades at a nearly 20% premium as traders expect Uniswap to gain even more market share after the CRV exploit," Markus Thielen, head of research and strategy at Matrixport, said in an email.

Funding rates have jumped to an annualized 19%. (Matrixport)
Funding rates have jumped to an annualized 19%. (Matrixport) (Matrixport)

Late Sunday, Curve, the third-largest DEX, fell victim to a flash loan exploit that put $100 million worth of cryptocurrency at risk. Curve DAO's native CRV token fell over 15% to $0.63 following the attack. The quick decline introduced additional risk, potentially threatening to liquidate $70 million worth of borrowed position of Curve founder.

Still, the perpetual futures market indicates no signs of panic, with funding rates in CRV and AAVE markets holding above zero.

Funding rates in CRV perpetual futures remain positive after the exploit. (Matrixport)
Funding rates in CRV perpetual futures remain positive after the exploit. (Matrixport) (Matrixport)

"CRV DAO perp futures are still trading at a small premium, indicating that traders are more focused on moving positions away from the DEX (regarding TVL) rather than shorting the token," Thielen said.

The total value locked (TVL) locked in Curve Finance fell from $3.2 billion to $1.8 billion following the hack, according to data source DeFiLlama. Meanwhile, the TVL locked in Uniswap has held steady at around $3.8 billion while AAVE's has declined from $5.85 billion to $5.37 billion.

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.