$11BLN in fake Uniswap volume caused DEX and DeFi projects to clash as someone came up with a way to make the numbers increase as we see more in our latest cryptocurrency news.
The Uniswap trading volumes are higher than normal and the developers created a way to inflate the trading volumes on custom tokens so a day after helping the platform set a new and short-lived record for daily transaction volume, Delta did it again as one of the biggest decentralized exchanges in the world. Delta is a Defi protocol that removes volatility from options trading by stabilizing the liquidity as one CORE Team developer that built Delta, released a smart contract which allowed about $11BLN in fake trading volume for one token to be registered over the past 24 hours on Uniswap. This will be a new record but it is unlikely that it will stand as per Uniswap Info which invalidated the Delta volume a day ago.
Everyone can now create $20b volume on a custom token! Attack will continue until DELTA trading history is reinstated, and we get a apology from uniswap for abusing centralized power. pic.twitter.com/Yka5JgCLW6
— 0xRevert (@0xRevert) March 30, 2021
The developer’s move threatened to render the statistic meaningless in an industry where transparency is a currency over a manufactured debate over decentralization. DeFi is the meaning of decentralized finance protocols which allows people to trade assets, borrow funds and earn interest without bets, brokers, or bookies. Uniswap is a key cog in the ETH DeFi space as one f the biggest decentralized exchanges in the world with more than $4 billion in value locked into the protocol. This way, people can swap assets with other people without having to place their tokens in the custody of a third party like Binance or Coinbase.
Until two days ago, when Delta launched on the ETH blockchain, Uniswap had never done more than $2.22 billion in one day but in October 2020 when Harvest Finance was hacked we saw it increase dramatically. Uniswap Info tracks the statistics for the DEX and moved DELTA’s volume to untracked which means it will no longer count towards the global volume and DEX statistics with the adjusted tally from a day ago being $1.26 billion. The reason for the adjustment and the higher volume has to do with Delta’s liquidity rebasing system which helps the token minting get more expensive over time and interact with the liquidity pool of Uniswap, making it appear as lots of trading is happening.
As per Hayden Adams, the result is “not wash trading but not “real volume either.” The move to filter out the trading by Delta caused a self-identified developer at CORE to hack the systems and allow anybody to mess around with the statistics.
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