Introduction:

In an evolving digital financial landscape, it is imperative to scrutinize the flow of crypto assets as it informs the global understanding of cryptocurrency market dynamics. This study focuses particularly on Uniswap (UNI) tokens, which have emerged as significant players in the crypto market. It examines the volume of UNI tokens being transferred between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX), drawing upon the unique characteristics and functionalities of both exchange types. The purpose of the analysis is twofold: first, to quantify the volume of UNI tokens migrating from CEX to DEX, and vice versa; and second, to identify which exchanges command the highest volume of these transfers in USD terms. By looking at the inflow and outflow of UNI tokens in these exchanges, we can garner valuable insights into investor behavior, market sentiment, and potential shifts in the cryptocurrency ecosystem. Overall, this analysis aims to offer an in-depth look into the flow of UNI tokens and serve as a valuable resource for stakeholders ranging from individual investors to financial institutions.

Methodology:

In this dashboard I am going to be using the ethereum.core.ez_token_transfers and ethereum.core.dim_labels tables. I am going join the labels table on the transfers table in order to see assets inflows and outflows into and out of DEXs and CEXs. I will be looking at overall transfers as well as transfer volumes to oberserve how these assets are moving around.

Definitions:

What is Uniswap?

Uniswap is a completely different type of exchange that‘s fully decentralized – meaning it isn’t owned and operated by a single entity – and uses a relatively new type of trading model called an automated liquidity protocol (see below). The Uniswap platform was built in 2018 on top of the Ethereum blockchain, the world’s second-largest cryptocurrency project by market capitalization, which makes it compatible with all ERC-20 tokens and infrastructure such as wallet services like MetaMask and MyEtherWallet.

What is a CEX?

Centralized exchanges (CEXs) are organizations that coordinate cryptocurrency trading on a large scale, using a similar business model to traditional asset exchanges like stock exchanges. Exchanges are essentially marketplaces. They are useful when a large number of people may be simultaneously trying to buy and sell the same type of asset. In the traditional economy, famous exchanges include the New York Stock Exchange and the London Metal Exchange. In the crypto sector, some well-known CEXs include Binance, Coinbase, Gemini and Kraken.

What is a DEX?

A DEX (decentralized exchange) is a peer-to-peer marketplace where users can trade cryptocurrencies in a non-custodial manner without the need for an intermediary to facilitate the transfer and custody of funds. DEXs substitute intermediaries—traditionally, banks, brokers, payment processors, or other institutions—with blockchain-based smart contracts that facilitate the exchange of assets.

Uniswap - CEX to DEX and DEX to CEX