Uniswap as a Leading Gas Guzzler on Ethereum

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Decentralized exchange Uniswap, is considered today is considered to be the primary and the most popular today gas guzzler on Ethereum. It deals with more than 30% of all the transactions that have been started on the network — in the previous 8 hours alone!

As of November 13, Uniswap obtained the status of the top decentralized app for the number of the fees. Within the same span of time, second place goes to Tether, which rules over dollar-pegged stablecoin — which in 2019 started to take tokens onto Ethereum. 

In Erherum computational resources are measured in “gas” units. This process is built in such a way that customers pay for gas in ETH via a network, which is known to be a cryptocurrency of Ethereum. At the time when the second Uniswap iteration first appeared, customers have paid more than 240,000 ETH in order to use the DApp — that’s equal to $146 million at the time this paper has been written.

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Specifically, customers really pay for access to the Uniswap router, which makes it possible to swap between tokens of Ethereum. 

Uniswap has two other well-known things, particularly, its distributor of governance and tokens, or UNI. Such tokens are not often used by customers and account for roughly 1% to 3%, accordingly, of Uniswap router transactions.

If gas is used, it means that Uniswap is active. As a decentralized exchange, Uniswap has established more than 24,000 various trading markets and attracts approximately 100,000 customers per week. Taking into consideration such numbers, Frederic Haga, the founder, and CEO of Dune Analytics, iterated that he was not surprised due to the high gas consumption-level in the decentralized app compared to other DeFi apps on Ethereum.

In an email, Frederic Haga wrote that many customers frequently engage in trading — that’s why it requires constant interaction. Conversely, lending is less active. While some finance apps achieve greater results of total value secured, Uniswap occupies the primary position for the overall amount of already started transactions and the consumed gas. 

Metrics such as gas consumption also highlight a way in which the DeFi apps work may be compared in various methods depending on a particular situation. 

Despite the fact TVL is the most used metric to measure the activity and growth of DeFi dapps, it generally demonstrates an insufficient situation of the myriad of actions that enabled DeFi to take off on Ethereum. 

It is essential to examine TVL using as many different metrics and measures as possible. Studies clearly show that TVL is a metric for DeFi as it is simple and elegant; however, according to the words of the lead analyst at DappRadar, Ilya Abugov, these characteristics obscure the reality.