In the dynamic world of cryptocurrency, astute investors—often referred to as SmartMoney—are known for their strategic moves. One such investor recently generated approximately $446K profit through the Uniswap ($UNI) token.
The lucrative strategy was first noticed and shared by Lookonchain, a prominent blockchain analytics platform on Twitter.
1/ Sharing a SmartMoney that is very good at shorting $UNI on-chain.
Starting from March 2022, this SmartMoney always borrows $UNI from #Compound and #Aave and sells at high prices, and then buys $UNI at low prices and repays.
He made ~$446K on $UNI in total. pic.twitter.com/P0IiMay2bJ
— Lookonchain (@lookonchain) June 14, 2023
According to Lookonchain, this remarkable feat was achieved by shorting $UNI on-chain, a strategy that involved borrowing $UNI from platforms like Compound and Aave, selling at high prices, and then repurchasing at lower prices to repay the borrowed amount. This efficient use of lending platforms and smart trading decisions have enabled the trader to accumulate significant profits over time.
This SmartMoney made a significant move following the announcement of Uniswap v4, selling 43,270 $UNI ($191K) at a high price point of $4.411.
Uniswap v4, a major upgrade to the Uniswap protocol, introduces powerful new functionalities, including customizable liquidity pools via “hooks” and streamlined pool creation that reduces the cost by 99%.
1/ Today, we’re announcing our vision for Uniswap v4 🦄
We see Uniswap as core financial infrastructure & think it should be built in public with space for community feedback and contribution.
An early implementation of the code can be found here:https://t.co/toy3k7plnU pic.twitter.com/9vGJElba2x
— Uniswap Labs 🦄 (@Uniswap) June 13, 2023