Ethereum-based decentralized platform Uniswap has created a huge uproar in the DeFi market ever since announcing its governance token UNI. On Wednesday, September 30, popular crypto exchange announced margin trading support for Uniswap (UNI) with two Uniswap pairs UNI/USD and UNI/USDt.
Margin trading for $UNI pairs is now available on Bitfinex!@UniswapProtocol pairs (UNI/USD), (UNI/USDt) can be traded with a maximum leverage of 3.3x, an initial equity of 30% and a maintenance margin of 15%.
— Bitfinex (@bitfinex) September 30, 2020
Margin trading is an age-old practice of trading wherein traders can borrow additional funds to increase leverage. Bitfinex has announced that both the trading pairs will be available for margin trading with a maximum leverage of 3.3x. Traders need to deposit an initial equity of 30% with a maintenance margin of 15%.
The exchange noted that users can also put their UNI token holdings as “collateral for margin trading with an initial haircut of 90%”. While margin trading offers higher leverage over regular trading, it comes with its own set of risks.
Bitfinex’s announcement just two later its competitor Binance announced cross-margin trading for Uniswap tokens. Binance allows cross margin trading facility for UNI in two trading pairs: UNI/BTC and UNI/USDT.
Uniswap (UNI) – Creating A Storm In DeFi Market
The decentralized exchange (DEX) Uniswap has created a storm in the DeFi market by launching its own governance token UNI. Just in ten days from launch, UNI has gained the top spot on DeFi charts in terms of total-value locked (TVL).
UNI is the only and the first token to have $2 billion in TVL. At press time, the UNI TVL stands at $2.13 billion dominating 19.40% of the market share. The Uniswap ecosystem continues to grow stronger with every passing day. Even big crypto exchanges like Coinbase and Gemini have been quick in listing Uniswap (UNI) on their platforms.
Soon after the release of the UNI tokens, the UNI price surged all the way making a high of $7.12. However, since then the UNI price has corrected an is seen consolidating between $4-$5. As per the CoinGape report, the UNI price pattern has indicated a descending wedge pattern indicating a bullish breakout.