Uniswap is a popular decentralized trading protocol, known for its role in facilitating automated trading of decentralized finance (DeFi) tokens.

An example of an automated market maker (AMM), Uniswap launched in November 2018, but has gained considerable popularity this year thanks to the DeFi phenomenon and associated surge in token trading.

Uniswap aims to keep token trading automated and completely open to anyone who holds tokens, while improving the efficiency of trading versus that on traditional exchanges.

Uniswap creates more efficiency by solving liquidity issues with automated solutions, avoiding the problems which plagued the first decentralized exchanges Link.

Before the implementation of gas subsidies, Uniswap had approximately 9 million transactions. After the subsidies were introduced, the number of transactions increased to about 25 million, marking a 170% increase. Similarly, the number of users (swappers) grew from 646,000 to approximately 1.258 million, reflecting an increase of over 90%.

Additionally, Uniswap's total swap volume before the subsidies was around $34.6 billion, whereas after the subsidies it reached approximately $49.2 billion, representing an increase of more than 40%. Although the total swap volume increased positively, the average swap volume per transaction decreased, suggesting that retail users began to use Uniswap more frequently with smaller amounts of money.

In terms of longitudinal data, the positive impact of gas subsidies is evident, as transaction counts, user numbers, and volume all experienced growth following the implementation. The gas subsidies also positively influenced the number of new and returning swappers, with both categories seeing increases post-subsidies.

Regarding transaction volume grouping, transactions in both periods predominantly fell between $1,000 and $5,000. However, the number of retail transactions increased, as these users gained a larger market share compared to the period before the subsidies.

In the next section, I analyzed the effect of Blob (gas subsidies) on the Uniswap Pool Sector. Before the subsidies, Uniswap recorded approximately 192,500 LP transactions. After the subsidies, this number surged to 2 million, an increase of around 930%. The number of LPers also grew significantly, from 25,400 to 97,300, a rise of more than 280%. Total LP volume before the subsidies was about $2 billion, increasing to $4.88 billion after, representing a growth of over 135%.

In comparing stable and volatile pools, it appears that volatile pools were more popular both before and after the subsidies, as they consistently had higher numbers of LP transactions, LPers, and LP volume.

The longitudinal data further indicates that gas subsidies had a positive impact on both stable and volatile pools, as both categories showed upward trends following the introduction of the subsidies. Before the subsidies, most transactions ranged between $1,000 and $5,000; however, after the subsidies, most transactions were less than $10, indicating that the subsidies made it more feasible for users to participate with smaller amounts.

Regarding the comparison of top pools before and after the subsidies, WETH-USDC emerged as the most popular pool in both periods in terms of increased liquidity volume.

In conclusion, implementing gas subsidies appears to have significantly benefited Uniswap, enhancing performance in both the swap and liquidity sectors. It also holds potential for further growth in other areas, such as NFTs, and could contribute to Uniswap gaining additional market share, particularly in Layer 2 solutions.

In my dashboard, I aimed to analyze the impact of gas subsidies on Uniswap, focusing specifically on the Swap and Liquidity sectors. To do this, I examined the effects of the Blob gas reduction on Arbitrum, which implemented this update on March 14. For a fair comparison, I selected equal periods before and after the update.

My hypothesis is that the reduction in gas fees due to the Blob update can be considered a form of gas subsidy for Uniswap. Therefore, I treated the Blob update on Arbitrum as a proxy for Uniswap's potential gas subsidies and analyzed its effects on the Swap and Liquidity sectors.

To ensure reliable data, I used Flipside as my data provider.