Bitcoin

Uniswap farming ends in 4 days and may free up $ 1,100 in ETH

The largest decentralized exchange in the world, Uniswap has just made its first call to the community, mainly to discuss the direction in which UNI agriculture will close on November 17th.

But The call ended without a clear instruction from Uniswap and no proposals were made to expand UNI’s agriculture or introduce new poolsHence, the next week can bring a lot of volatility to the room.

Since September 17th, Uniswap has been managing four ETH-based liquidity pools, which earn UNI 583,333 per week for each pool. The contribution of more than $ 2.4 billion in collateral has put the DEX at the top of the DeFi list in terms of total blocked value, but those incentives are nearing the end..

Uniswap farming ends in 4 days and may free up $ 1,100 in ETH
Uniswap farming ends in 4 days and may free up $ 1,100 in ETH

The fear of UNI holders is that token prices could be lowered in the short term as users withdraw liquidity and sell previously mined UNIs when the incentives are exhausted.. In the long run, reducing the new UNI could improve prices. UNI’s price has rebounded slightly over the past week, reaching over $ 3.

There is also concern that it might be withdrawn until $ 1.1 billion ETH these four funds and sell or reinvest them in higher income incentives. ETH rebounded at the beginning of UNI Agriculture, so the opposite could happen when it ends.

The community call was moderated by the Uniswap team member ‘Monet Supply’.. It started with an overview of recent governance issues but quickly moved on to the burning question of what will happen when the liquidity run ends on November 17th.

Cryptopodcaster Matt Aaron asked for internal discussions around this date to prevent another “vampire attack” like the SushiSwap incident, in which a clone offered great incentives to deplete Uniswap’s liquidity.. Aaron was concerned about the liquidity running out of the log and asked how users would be encouraged to stay there once the rewards ran out.

Uniswaps Chief Strategy Officer, Matteo Liebowitz didn’t give much information; replied “no comment”and added:

“Any decision regarding liquidity mining must be made by community members, not the Uniswap team.”

0xMaki from SushiSwapwhich was also part of the call, He said if you have a subsidy or liquidity incentive on the platform someone has to pay for it and in this case it is the UNI token holders.

“If you look at DEX stats, Uniswap leads the way with a unique number of traders and I’m willing to bet this has absolutely nothing to do with the liquidity mining program.”

He saw no threats from other protocols trying to subsidize his system to get through.

Realizing that there would be no definitive answers to the question of liquidity in agriculture, the debate moved on to the faster level 2 of Ethereum Uniswap v3 and its integrationBut here too, Liebowitz gave no information when asked, claiming that he was just an observer.

In the chat that accompanied the video conference, some possible new liquidity funds were discussed, however There were no conclusive answers as to what will happen when the four farms with more than $ 2.4 billion close.

In one event Concrete made in the last 24 hours seems like that Marvin Ammori, General Counsel of Protocol Labs, has joined Uniswap as General Counsel. One of the most famous lawyers in space advised President Obama on questions of net neutrality and also advised the television program Silicon Valley.

Various legal issues were raised in the community solicitation and now it looks like Uniswap has the man for the job.

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