DeFi Investors Earn $5.4 Million on Ethereum Exchange Promising Protection Against ‘Rug Pulls’

In the midst of a declining crypto market, astute DeFi traders are capitalizing on the opportunities presented by a new Ethereum exchange named Ethervista. Within a mere five days of its launch, the top 10 traders of the exchange’s VISTA token have collectively seen a remarkable increase of $5.4 million in profits. Notably, one trader alone has reaped $3.3 million in gains, as indicated by data compiled by Dex Screener.

Ethervista, which commenced operations on August 31, functions as a decentralized exchange akin to Uniswap. It enables users to launch their own tokens and establish liquidity pools, facilitating token swaps without the necessity of trusting a custodian.

The VISTA token associated with Ethervista has exhibited significant volatility. Despite swiftly attaining a market value of $29 million within 48 hours of its debut, the token has experienced substantial price fluctuations, with swings of up to 50% in recent trading sessions.

The buzz surrounding Ethervista has drawn comparisons to platforms that create memecoins, such as pump.fun on Solana. While both platforms have captured the attention of DeFi enthusiasts, there exist notable distinctions between them.

Ethervista endeavors to address challenges prevalent in token launches on other platforms. Its fee structure incentivizes creators based on the trading volumes of their launched tokens rather than solely on price appreciation, thus mitigating the emphasis on short-term profits by creators.

Several memecoins have been launched on Ethervista, with one of the most popular tokens being BONZI, named after the exchange’s purple monkey mascot. Tokens launched on Ethervista are subject to an automatic delayed liquidity-removal mechanism, preventing creators from abruptly withdrawing liquidity—a practice known as a “rug pull” in DeFi circles.

The heightened trading activity surrounding Ethervista and its token has led to a surge in Ethereum transaction fees, reaching their highest sustained levels in recent weeks. Despite the introduction of spot exchange-traded funds in July, investors have displayed bearish sentiment towards Ethereum. Activity has shifted to faster and more efficient layer 2 solutions, resulting in reduced Ether expenditure on transactions and contributing to Ether’s inflationary trend.

While Ethervista has stimulated mainnet activity, the consequent rise in fees has not been adequate to reverse the network’s deflationary trajectory. Calls have been made for increased mainnet usage, even though transactions on the mainnet are more costly than those conducted on layer 2 solutions.

Tim Craig, DL News’ DeFi Correspondent based in Edinburgh, can be contacted for tips at tim@dlnews.com.