Uniswap Conducted Its First Community Call, But No Proposals Submitted For Extending UNI Farming Or Launching New Pools
Uniswap Conducted Its First Community Call, But No Proposals Submitted For Extending UNI Farming Or Launching New Pools
November 14, 2020
Uniswap Conducted Its First Community Call, But No Proposals Submitted For Extending UNI Farming Or Launching New Pools
Uniswap Conducted Its First Community Call, But No Proposals Submitted For Extending UNI Farming Or Launching New Pools
November 14, 2020

Uniswap, the world’s largest decentralized exchange, has conducted its first community call, but the call ended with unclear direction fromUniswap, and no proposals submitted for extending UNI farming or launching new pools.

It has been reported that Uniswap has been running four ETH-based liquidity pools since September 17 that have been earning 583,333 UNI per week, per pool.

However, the collateral injection of over $2.4 billion has propelled the DEX to the top of the DeFi list in terms of total value locked, but those incentives are about to come to an end.

The report said that the fear among UNI holders is that token prices may dump in the short term if users withdraw liquidity and sell off previously mined UNI when incentives dry up. In the long term, the reduction in new UNI could help prices. UNI prices have made a slight comeback over the past week, topping $3.

Also, there is the concern that up to $1.1 billion dollars’ worth of ETH could be withdrawn from these four pools and either sold or reinvested into higher-earning incentives.

ALSO READ :  Bitcoin Subreddit Sees Remarkable Increase In Its Number Of Subscribers

ETH rallied when UNI farming began, so the opposite could occur when it ends. 

The community call was hosted by Uniswap team member “Monet Supply.” It began with a roundup of recent governance issues but was quickly steered toward the burning topic of what will happen when liquidity mining ends on Tuesday. 

Likewise, Matt Aaron, the crypto podcaster, asked about internal discussions regarding this date in order to prevent another “vampire attack” such as the SushiSwap incident, in which a clone offered large incentives to drain liquidity from Uniswap. Aaron was concerned about liquidity leaving the protocol and asked how it will incentivize users to remain there once rewards had dried up.

ALSO READ :  Kakao’s Klaytn to Welcome Binance to its Global Blockchain Council

Matteo Liebowitz, the head of strategy at Uniswap, did not give much away with a “no comment” response.

He just said:

“Any decisions regarding liquidity mining has to be made by community members rather than the Uniswap team.”

Furthermore, 0xMaki from SushiSwap, who was also part of the call, said that if anyone has a subsidy or incentive for liquidity on the platform, someone has to pay for it, and in this case, it is UNI token holders.

0xMaki said:

“If you look at DEX statistics, Uniswap is leading on unique number of traders and I am willing to bet that that has absolutely nothing to do with the liquidity mining program.”

As he didn’t see any threat from other protocols trying to subsidize their system to get ahead, there were going to be no definitive answers on the liquidity farming issue. The discussion moved on to the faster Ethereum layer-2 Uniswap v3 and integrations, but again, Liebowitz was giving nothing away when questioned, maintaining that he was just an observer.

ALSO READ :  PayPal Validates Developing Capabilities In Crypto Space In A Letter to EU

The chat that accompanied the video call discussed some potential new liquidity pools, but there were no conclusive answers as to what will happen when the four farms containing over $2.4 billion close.

The report said that in one concrete development to emerge in the past 24 hours, it appears the General Counsel of Protocol Labs Marvin Ammori has joined Uniswap as its Chief Legal Officer.

Thus, a number of legal issues were discussed at the community call, and now it seems Uniswap has the man for the job.

Source: Cointelegraph


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Money on Chain Launches TEX With A Unique Twist

Money on Chain Launches TEX With A Unique Twist

Money on Chain (DeFi protocol), a lending platform and stablecoin issuer based on Bitcoin (BTC) sidechain RSK, has announced the launch of TEX, an automated token swap platform based on an order book, with a unique...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.