"Decentralized' exchange Uniswap starts blocking token access

[Bitcoin_Arena]

So yesterday uniswap developers just woke and and decided to block access to certain tokens in their exchange. If the self proclaimed "decentralized" exchange can just change their goal posts in an instant and censored certain tokens, What are the chances that if the likes of SEC come knocking, they will bend down to pressure start demanding for KYC from traders  

Here's a snippet of what they said

To continue to innovate and provide this tool for the Uniswap community, we monitor the evolving regulatory landscape. Today, consistent with actions taken by other DeFi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org. These tokens have always represented a very small portion of overall volume on the Uniswap Protocol

Laughable, isn't it?

This just goes to show that all this so-called smart contract based "Decentralized exchanges' aren't actually decentralized. They can be stopped in an instant.

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[joniboini]

That is a terrible way to do it. I think they can use the voting option and make it as if the community agrees on it instead of doing it on their own. It will certainly get a backlash from the communities, and other protocols can use this to attack their decentralized nature. I don't know why they decide to do it. Either they're confident with their reputation and believe the backlash is nothing, or they're just drunk.

[o48o]

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This just goes to show that all this so-called smart contract based "Decentralized exchanges' aren't actually decentralized. They can be stopped in an instant.

Well trading still is decentralized, just not the way people understand "decentralized". They write the code, they get it audited, they can do what they want with it. You can literally make your own site that includes every token. They just block them because scams are hurting the the customer experience.

If you think that unmoderated listing has more value, you should build that service. If you are right, you might even get rich with it.

[WNTRjon]

This just goes to show that all this so-called smart contract based "Decentralized exchanges' aren't actually decentralized. They can be stopped in an instant.

A website cannot be truly decentralized effectively. The magic that makes it all work behind the scenes can be decentralized. Uniswap is more than just a website that you visit. You could create your own website under any other domain name, and it could still utilize Uniswaps technology.

[Bitcoin_Arena]

I think if they implement KYC then it is not compatible with decentralized system. However, if you delete tokens that are not in accordance with the provisions, then this will have a positive effect. Because too many shitcoins rely on swap exchanges to promote their coins.

That's the price pay in decentralization. Look at Bitcoin, there have been some scammers using the network to defraud other but it doesn't meant that the network should the censorship approach just because a few careless chaps got scammed. Your money is your responsibility. If you go on buying shitcoins, then that's you problem, not Uniswap's

Well trading still is decentralized, just not the way people understand "decentralized". They write the code, they get it audited, they can do what they want with it.

"Trading is decentralized but the code ain't, but anyways let's call it a decentralized exchange to excite the average Joes" Good job uniswap devs

A website cannot be truly decentralized effectively. The magic that makes it all work behind the scenes can be decentralized.

You as an average trader, What do you use to access Uniswap?

[joniboini]

A website cannot be truly decentralized effectively. The magic that makes it all work behind the scenes can be decentralized. Uniswap is more than just a website that you visit. You could create your own website under any other domain name, and it could still utilize Uniswaps technology.

I don't think this is more than just a UI issue. If I'm not wrong then doesn't block token access mean you won't be able to use the protocol to trade them? And even if we fork the code there is an issue with liquidity, etc. Might as well use Sushi or other forks instead of doing that.

[o48o]

"Trading is decentralized but the code ain't, but anyways let's call it a decentralized exchange to excite the average Joes" Good job uniswap devs

Sounds like you aren't angry with centralization but them banning something or working with the regulators. (imho that was a good choice)

If you try to DAO the coding process somehow to make it more decentralized, would quickly goes to shit because most people voting for the changes can't code and their votes would be easily manipulated by popularists.

This has more to do with the users that have decided to use the code instead of some other code. As i said, it's their site but no one is forcing anyone to use it, people just rather use it then their rivals.

[bittraffic]

Because there is a governing team behind it, it can't fully be decentralized, unlike Bitcoin where there is no Satoshi to compromised.  

we have taken the decision to restrict access to certain tokens through app.uniswap.org.

Do they manually do it?

If they could just edit codes and protocols which acts like if the market doesn't reach a certain buying order threshold/volume, the token is delisted on its own and will be activated when reached. It might just sound good.

[vv181]

Do they manually do it?

If they could just edit codes and protocols which acts like if the market doesn't reach a certain buying order threshold/volume, the token is delisted on its own and will be activated when reached. It might just sound good.

Yes, they did manually block the tokens access.

As you can see on the below link, it was added manually by the devs. There is no autonomous or any threshold that the protocol would block it on its own.
https://github.com/Uniswap/uniswap-interface/blob/main/src/constants/tokenLists/unsupported.tokenlist.json

~ Today, consistent with actions taken by other DeFi interfaces, ~snip

I wonder besides them blocking some tokens, which "other Defi interfaces" that also blocking it. I tried to find it but did not get any pieces of information.

[Bitcoin_Arena]

Sounds like you aren't angry with centralization but them banning something or working with the regulators. (imho that was a good choice)

What I don't like is the hypocritical approach. If they claim to be decentralized, then they should act like they are decentralized. I don't care about centralized exchanges because it's in black and white that they are centralized.

If you try to DAO the coding process somehow to make it more decentralized, would quickly goes to shit because most people voting for the changes can't code and their votes would be easily manipulated by popularists.

This has more to do with the users that have decided to use the code instead of some other code. As i said, it's their site but no one is forcing anyone to use it, people just rather use it then their rivals.

So what's the use of their governance if it can't even help with the decision making?

Yes the exchange may have owners but without a community that came in with the belief that Uniswap is a decentralized exchange and had a DAO governance model in place. They would be nothing

[FinneysTrueVision]

"Trading is decentralized but the code ain't, but anyways let's call it a decentralized exchange to excite the average Joes" Good job uniswap devs

Sounds like you aren't angry with centralization but them banning something or working with the regulators. (imho that was a good choice)

Working with regulators is a horrible idea and sets a bad precedent. Regulators also want to KYC every Bitcoin transaction made from private wallets. They are not here looking out for people's best interests. They are only interested in making it as difficult as possible to use crypto.

[leea-1334]

We all knew that of course,,, and shame on people who never thought this could happen. Uniswap has always been centralized and guess what they are not the only ones even opensea was recently shamed for delisting some meme NFTs for being too similar to an old project. So they actually delisted because of pressure from a rich project who did not want their competition there.

People need to find another way to describe these DEXs. AMMEX?

[Anonylz]

Well it shows nothing is truly 100% decentralized, people always claim dex are more secure because you have total control than cex but with this action it shows even dex can pull a fast one whenever they feel the need to do so after all they are owned by an individual or group and must protect their interest, if they can do this then certainly they can do more than this if necessary.

[o48o]

Working with regulators is a horrible idea and sets a bad precedent. Regulators also want to KYC every Bitcoin transaction made from private wallets. They are not here looking out for people's best interests. They are only interested in making it as difficult as possible to use crypto.

Working with regulators is really the ONLY road to take if you are a centralized organization with public head figures, it would be naive to assume anything else. And if we want cryptos mooning, we need regulators to give us a green light.

There are several different forces behind even in one government wanting different things. But probably none of them want anonymity or even, pseudonymity, but even pseudonymous transactions are probably going to be replaced with confidentiality (not anonymity).

If you want anonymity, you should go and pick permissionless privacy coins, but good luck cashing them to fiat if FATF travel rule gets implemented fully.

[s1lverbox]

So yesterday uniswap developers just woke and and decided to block access to certain tokens in their exchange. If the self proclaimed "decentralized" exchange can just change their goal posts in an instant and censored certain tokens, What are the chances that if the likes of SEC come knocking, they will bend down to pressure start demanding for KYC from traders  

Here's a snippet of what they said

To continue to innovate and provide this tool for the Uniswap community, we monitor the evolving regulatory landscape. Today, consistent with actions taken by other DeFi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org. These tokens have always represented a very small portion of overall volume on the Uniswap Protocol

Laughable, isn't it?

This just goes to show that all this so-called smart contract based "Decentralized exchanges' aren't actually decentralized. They can be stopped in an instant.

I am prety sure you have no idea about this subject. First of all: uniswap front end blocking tokens not smart contracts. So this tokens which are blocked are still accesible by smart contract call. So in practice uniswap centralized entity following guidelines and cannot be liable for breaking those guidelines. If gov want to shut down anything it have to be blockchain.

Please research properly before posting nonsense. It's easy to check that tokens and respected liquidity is still accessible but not through uniswap front end. 

[Bitcoin_Arena]

I am prety sure you have no idea about this subject. First of all: uniswap front end blocking tokens not smart contracts. So this tokens which are blocked are still accesible by smart contract call. So in practice uniswap centralized entity following guidelines and cannot be liable for breaking those guidelines. If gov want to shut down anything it have to be blockchain.

Please research properly before posting nonsense. It's easy to check that tokens and respected liquidity is still accessible but not through uniswap front end.  

Don't think i don't know about the front end and backend stuff. Before making this topic, i made some prior research. There's no need to act like a dick

If you read through the thread, you would understand what i am pointing at?

1. Does Joe, the average trader who decided to use Uniswap because he thinks it's full decentralized care about what goes on in the back end while the front end censors every token at their will?

2. What is the use of DAO governance which is one of the benchmarks for cropping decentralized projects if the project devs can just wake up and block or censor whatever they feel like?

[mu_enrico]

I told you guys so many times there is no such thing as decentralized exchange atm. I think this case is like etherdelta, where the developer/CEO was fined and then forced to change things. Decentralized exchanges, coins, whatever, is possible only if the developers have no power over the system. It can be via mining/signaling mechanism where if the devs change the code, the community can vote over it. And this is with the assumption that government cannot take over the network.

[o48o]

What I don't like is the hypocritical approach. If they claim to be decentralized, then they should act like they are decentralized. I don't care about centralized exchanges because it's in black and white that they are centralized.

So what's the use of their governance if it can't even help with the decision making?

Yes the exchange may have owners but without a community that came in with the belief that Uniswap is a decentralized exchange and had a DAO governance model in place. They would be nothing

Well, i see the point, but they Uniswap is still way better then their rivals like 1inch that still has closed source router contract. And in case of uniswap, it's not about protocol, but more of an interface issue. Maybe someone will build that too some day, but imho not everything should be decentralized.

[s1lverbox]

I am prety sure you have no idea about this subject. First of all: uniswap front end blocking tokens not smart contracts. So this tokens which are blocked are still accesible by smart contract call. So in practice uniswap centralized entity following guidelines and cannot be liable for breaking those guidelines. If gov want to shut down anything it have to be blockchain.

Please research properly before posting nonsense. It's easy to check that tokens and respected liquidity is still accessible but not through uniswap front end.  

s1lverbox I do not think you know what you are talking about. This is the problem with developers and tech people who think they are above regular users. They create and think they are right in their pedantic behavior.

If you are a decentralized exchange, as you claim you are, then you are in no business of blocking tokens or even in a position to care about blocking them. It does not matter if there is a way to bypass it,,, and as Bitcoin_Arena points out, Joe the average trader does not know how to do this. Heck even I do not know how to do this,,, and if I do not see it on Uniswap, I am not going to go to the trouble of doing a smart contract call even if I did know how. Call me a dumb user but that is me and I bet you I am at least on average ability compared to most users who do not even have their own wallet.

Uniswap v3 will make their source code closed source. And now Uniswap 2 is censoring hundred+ tokens.

If anyone can still argue this is decentralized, when it is soon not even going to be open source, then I do not understand at all.

again, uniswap ui = front end blocking tokens. Per gov bodies request. but uni is decentralized and can be interacted with smart contract only.
And yes, them tokens blocked on front end are still available for peeps.And the moment someone create another fork of front end will end that regulatory game.

Perfect example is : thepiratebay.

Just google "the piratebay " and check whats coming out. Content is still there. Just not accessible by users without know how. But this will change.

[s1lverbox]

I am prety sure you have no idea about this subject. First of all: uniswap front end blocking tokens not smart contracts. So this tokens which are blocked are still accesible by smart contract call. So in practice uniswap centralized entity following guidelines and cannot be liable for breaking those guidelines. If gov want to shut down anything it have to be blockchain.

Please research properly before posting nonsense. It's easy to check that tokens and respected liquidity is still accessible but not through uniswap front end.  

Don't think i don't know about the front end and backend stuff. Before making this topic, i made some prior research. There's no need to act like a dick

If you read through the thread, you would understand what i am pointing at?

1. Does Joe, the average trader who decided to use Uniswap because he thinks it's full decentralized care about what goes on in the back end while the front end censors every token at their will?

2. What is the use of DAO governance which is one of the benchmarks for cropping decentralized projects if the project devs can just wake up and block or censor whatever they feel like?

Nobody acting like a dick. If you research properly you would mention that fact in you OP.
Hayden only blocked this tokens on front end to not beeing chased up. But again, just because you hide that on UI does not mean completely not accessible.
So therefore your post have wholes.

Average users might have difficulty understand whats true and what not.