Uniswap’s Daily Volume Nudges $25M Despite Scam Token Concerns

Daily trade volume on the decentralized exchange (DEX) and liquidity pool Uniswap has rallied to $25 million on the back of a strong first day of trade for the digital asset protocol Ampleforth’s AMPL.

ETH-AMPL currently comprises Uniswap’s top pairing by volume, with nearly $2.9 million in trade activity over the past 24 hours. The past day comprises the second-strongest on record for Uniswap V2, however, the first incarnation of the exchange has seen brief spikes into the hundreds of millions three times in the past 12 months.

Uniswap is quickly emerging as a leading DEX, with rivals Kyber Network representing $7.6 million in daily trade, IDEX posting nearly $1 million in 24-hours, and Binance DEX hosting  $730,000 in swaps over the past day.

While Uniswap’s volumes pale in comparison to the multiple billions that are traded on the leading centralized exchanges, the relative absence of high-frequency algorithmic traders and arbitrage bots probably explains a lot — as does the absence of wash trading.

Uniswap warns ERC-20 token traders

However, Uniswap’s increasing volumes come amid an increasing number of scam tokens impersonating major decentralized finance (DeFi) protocols and other ERC-20 tokens exploiting the platform’s open listing policy.

The prevalence of imposter coins has led Uniswap to publish a warning for ERC-20 token pairings on its platform. The notice reads:

“Anyone can create and name any ERC20 token on Ethereum, including creating fake versions of existing tokens and tokens that claim to represent projects that do not have a token. Similar to Etherscan, this site automatically tracks analytics for all ERC20 tokens independent of token integrity. Please do your own research before interacting with any ERC20 token.”

Kleros hopes to solve scam token problem

Distributed dispute resolution protocol Kleros believes that its fully vetted Token Curated Registry of Tokens (T2CR) can help eliminate scam tokens on Uniswap.

Tokens accepted into the list must comply with basic standards such as not being associated with malicious addresses. Accepted tokens can apply to for badges representing various qualities that a coin possesses, and are vetted by users.

Kleros suggests that decentralized exchanges like Uniswap implement badge requirements for listings, mobilizing the wisdom of its crypto community to ensure high standards are maintained among supported assets.

Approved tokens are automatically added to its Uniswap frontend called UniswapNinja.