Uniswap Daily Volumes Top $1 Billion Amid Yield Farming FrenzyAuthor: Ali RazaLast Updated: 03 September 2020 Uniswap stands as the first-ever decentralized exchange (DEX) that has managed to achieve $1 billion in 24-hour trade volume. This comes due to a dramatic yield farming activity spike across SushiSwap as well as protocols similar to it.Uniswap Taking Third Place Overall In Trade VolumeCoinGecko, a crypto aggregator, has made it clear that Uniswap V2 currently stands as the third-largest exchange by normalized volume, having recorded $1.02 billion in ERC-20 tokens changing hands within just 24 hours.The only two exchanges that managed to beat Uniswap is OKEx and Binance, with OKEx recording $1.10 in daily trade, and Binance recording $6.25 billion. What this means, is Uniswap is now beating global heavyweight centralized platforms, such as Huobi Global, Coinbase Pro, and Bitfinex.Warnings Of COllapseWith this massive boom in yield farming, Uniswap has suddenly emerged as the top dog when it comes to decentralized finance (DeFi) protocols, with $1.69 billion in locked funds. This stands as an impressive 18.05% of the total value locked within the DeFi sector’s smart contracts, according to DeFi Pulse.Analysts are giving out warnings, however, predicting that Uniswap’s dramatic dominance will only be short-lived. Rival forks have opted to offer incredible incentives to various liquidity providers, and have seen rapid growth within recent weeks.Vampire Attacks AboundA prime example of this would be SushiSwap, an unaudited Uniswap fork, who is currently eyeing to siphon the liquidity from Uniswap. Alongside Sushiswap stands other unaudited forks of Uniswap, such as Hotdogswap, uno.finance, kimchi, and pizzafinance. Besides not having the most exemplary of names, these forks are actively tempting yield farmers with claimed returns that sometimes exceed millions of percent in value.As a result, SushiSwap, in particular, has managed to attract $1.47 billion in locked funds, doing so through something commonly referred to as a “vampire attack,” which is to leach liquidity from Uniswap.Many Rise; Many FallWith these extreme incentives to stake being offered by rival platforms, liquidity will inevitably be leached off from the leading DEX. As a result of this, the total amount of LP tokens that were farmed on SushiSwap, in particular, represents more than 72% of the total funds that are currently locked within Uniswap.As everyone is clambering over each other to steal liquidity from Uniswap, massive collapses are occurring, as well. Hotdog’s native token, in particular, saw a catastrophic price plummet, going down to $1 from its earlier $4,000 in just five minutes.