No loyalty among yield farmers.
Uniswap now has more value locked (TVL) than its upstart rival, SushiSwap, less than a day after SUSHI block rewards for liquidity providers (LPs) dropped from 1,000 tokens to just 100.
- TVL on SushiSwap fell from $1.46 billion worth of crypto assets on Saturday around 23:00 UTC to $885 million as of press time, according to SushiSwap Vision, which is a fork of the explorer used by Uniswap.
- The SUSHI token's price has had a less-precipitous fall, only dropping from $2.45 to $2.23 in the same time period.
- Uniswap's TVL has now risen to nearly $955 million as of press time, according to Uniswap Info.
- SushiSwap executed its planned slashing of block rewards from 1,000 to 100 SUSHI for liquidity providers (LPs) on Saturday following last week's successful migration of $800 million in assets from Uniswap.
- The initial block rewards were designed to convince Uniswap LPs to entrust their LP tokens to SushiSwap so that it could migrate a large portion of Uniswap assets to SushiSwap when it went live (as it happens, Uniswap ended the migration with roughly double the assets it had before SushiSwap was announced).
- The drop suggests a significant number of LPs were primarily motivated by maximizing their SUSHI holdings rather than supporting an ostensibly more decentralized alternative.