What is UniSwap?

Uniswap is a decentralized exchange protocol built on the Ethereum blockchain. It enables users to trade Ethereum-based tokens directly from their wallets without the need for intermediaries such as traditional exchanges or order books. Uniswap utilizes an automated market maker (AMM) model, which means that trades are executed through smart contracts and liquidity is provided by users who contribute funds to liquidity pools.

What is a CEX?

A CEX, or Centralized Exchange, refers to a type of cryptocurrency exchange that operates on a centralized model. In a centralized exchange, a central authority or organization facilitates the trading of cryptocurrencies and other digital assets on behalf of users. Some examples include Binance, Coinbase, Kraken, and Bitstamp. While centralized exchanges offer convenience, liquidity, and user-friendly interfaces, they are also subject to the risks associated with centralization, such as potential hacking or security breaches, counterparty risk, and dependence on the exchange operator.

What is a DEX?

A DEX, or Decentralized Exchange, is a type of cryptocurrency exchange that operates in a decentralized manner without the need for intermediaries or central authorities. Unlike centralized exchanges (CEXs), DEXs allow users to trade cryptocurrencies directly with each other using smart contracts and blockchain technology. Examples of popular decentralized exchanges include Uniswap, SushiSwap, PancakeSwap, and 1inch. DEXs offer advantages such as increased user control, reduced reliance on centralized entities, and resistance to censorship. However, they may also face challenges related to liquidity fragmentation, slower transaction speeds, and user experience compared to centralized exchanges.

This project aims to analyze the transfer of UNI tokens, which have gained significance in the crypto market. Firstly, I examine the flow of UNI tokens between CEXs and DEXs, considering the migration in both directions. Secondly, identifying the exchanges that dominate these token transfers in terms of USD value. By examining the inflow and outflow of UNI tokens across these exchanges, we can derive meaningful insights into investor behavior, market sentiment, and potential shifts within the cryptocurrency ecosystem.

Ultimately, this comprehensive analysis strives to provide an extensive overview of the UNI token flow. By shedding light on the movements and their distributions between CEX and DEX platforms, this study aims to contribute to a deeper understanding of the cryptocurrency market and support informed decision-making processes.