Uniswap Monthly Financial Report & Analysis - Feb 23
This Newsletter issue covers Uniswap DAO & Protocol Performance during Feb 23.
Table of Contents
Governance & Markets Recap
During February, three important proposals were executed on chain :
Uniswap deployment to Boba Network & BNB chain.
And the activation of 1bp fee tier on Uniswap Arbitrum.
On the markets front, BTC, ETH and UNI finished the month of February flat.
Volumes Analysis
Data Source : Defi Llama
It was the month of Uniswap v2 and Arbitrum as both deployments recorded double digits growth.
Uniswap protocol facilitated 45B USD in trading volume during Feb 23, up 32% MoM. Of which, 30B (67%) came from v3-Ethereum.
Data Source : Defi Llama
Uniswap recorded MoM growth for the third straight month. February levels are almost on par with Q1 & Q2 2022.
Fees Analysis
Data Source : Defi Llama & Uniswap Extractor
Uniswap LPs made 68m USD during Feb (800m annualized), up 80% MoM. Even a 10% cut from that would generate 80m USD for the DAO annually … One day!
Data Source : Defi Llama & Uniswap Extractor
We’ll have to go to pre-crypto collapses to find fees levels higher than February.
Liquidity Analysis
Data Source : Defi Llama
Uniswap on Arbitrum had a big month on all metrics. Uniswap Arbitrum Liquidity had a 40% increase MoM, becoming the top deployment outside of Ethereum Mainnet.
Data Source : Defi Llama
Altough Volumes & Fees are at levels comparable to Q1 & Q2 2022, Liquidity still has to catch up. This is mainly due to v2 that is dominated by small caps that were impacted heavily by the bear market.
Focus 1 : Trading Fees
We know that Uniswap v2 traders are paying a fixed rate of 0.3%. But how much are v3 traders paying ?
Data Source : Defi Llama & Uniswap Extractor
Uniswap v3-Ethereum fees rate have been in the 8-16bps since the start of 2022. The average rate broke its down trend during Dec 22, with traders paying around 12bps on average during February. A much lower cost than v2.
Data Source : Defi Llama & Uniswap Extractor
Uniswap Arbitrum fees rate are higher than L1, this could be due to more small caps trading on L2s and they tend to have higher rates. Arbitrum fees are still lower than v2 though. Traders on L2s are saving on fees to LPs in addition to gas costs.
Data Source : Defi Llama & Uniswap Extractor
Average fees rate paid by traders on Optimism are similar to Arbitrum at 10-25bps but follow a different pattern.
Data Source : Defi Llama & Uniswap Extractor
Polygon has the lowest fees rates across all deployments.
Data Source : Defi Llama & Uniswap Extractor
Celo traders have been paying around 20bps trading fee on average since deployment.
Data Source : Defi Llama & Uniswap Extractor
Uniswap traders paid on average 15bps during February. The rise puts the fee at par with Q1 & Q2 2022.
Focus 2 : Return on Liquidity
Data Source : Defi Llama & Uniswap Extractor
It was the month of v2, LPs ARP tripled MoM from 6% at January levels to 18% at February levels.
Data Source : Defi Llama & Uniswap Extractor
v3 Ethereum LPs return on liquidity during Febuary is on par with Q1 & Q2 2022 at 18%.
Data Source : Defi Llama & Uniswap Extractor
Arbitrum LPs are making the highest return on their liquidity. At Febuary levels, they are generating 70% APR on average.
Data Source : Defi Llama & Uniswap Extractor
50% APR for Optimism LPs, but still lower than levels seen after the OP token arrival.
Data Source : Defi Llama & Uniswap Extractor
30% APR for Polygon LPs at Feb 23 Levels.
Data Source : Defi Llama & Uniswap Extractor
At February levels, Celo LPs are generating 6% return on liquidity provided. The APR has been less than 10% since deployment except for November (FTX Collapse!).
Data Source : Defi Llama & Uniswap Extractor
At February fees levels, Uniswap LPs are making 20% APR on liquidity provided. These levels are on par with the start of 2022.
Focus 3 : Uniswap Mainnet vs L2s and SideChains
Data Source : Defi Llama
During February, L2s (Arbitrum & Optimism) and SideChains (Polygon & Celo) contributed around 7% of Uniswap protocol liquidity.
Data Source : Defi Llama
L2s and SideChains share of Uniswap protocol recorded a new ATH during Feb 23 at 20%.
Data Source : Defi Llama & Uniswap Extractor
February saw a new All time high in fees contribution as well at 18%.