Uniswap farming ends in 4 days, potentially freeing up $ 1.1 billion ETH

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The world’s largest decentralized exchange, Uniswap, has just launched its first community appeal, mainly to discuss where to go when UNI Farming ends on November 17th.

But the call ended without any clear direction from Uniswap, and no proposals were submitted to expand UNI’s agriculture or start new pools, so next week may well bring a lot of volatility to the business. ‘space.

Uniswap has been running four ETH-based cash pools since September 17 which have brought in 583,333 UNI per week per pool. The injection of collateral of over $ 2.4 billion has propelled the DEX to the top of the DeFi list in terms of total locked-in value, but those incentives are about to end.

The fear among UNI holders is that token prices could drop in the short term if users withdraw cash and sell previously exploited UNIs when incentives dry up. In the long term, reducing new UNIs could improve prices. UNI prices made a slight comeback over the past week, topping $ 3.

It is also feared that up to $ 1.1 billion dollars of ETH could be taken out of these four pools and sold or reinvested in higher income incentives. ETH mobilized when UNI’s agriculture started, so the opposite could happen in the end.

The community call was organized by “Monet Supply”, a member of the Uniswap team. It started off with a round-up of recent governance issues, but quickly turned to the hot topic of what will happen when the cash extraction ends on November 17th.

Crypto podcaster Matt Aaron asked about internal discussions regarding this date in order to avoid yet another “ vampire attack ” such as the SushiSwap incident in which a clone offered great incentives to drain cash from Uniswap. Aaron was concerned about the liquidity leaving the protocol and asked how that would make users stay there after the rewards run out.

Uniswap’s chief strategy officer, Matteo Liebowitz, didn’t give much with a “no comment” response, adding;

“All decisions regarding cash extraction should be made by community members rather than the Uniswap team.”

0xMaki from SushiSwap, who was also on the call, said that if you get a subsidy or liquidity incentive on the platform, someone has to pay for it, and in this case, these are the UNI token holders.

“If you look at the DEX stats, Uniswap is leading out of a unique number of traders and I’m willing to bet that has absolutely nothing to do with the liquidity extraction program,”

He didn’t see any threats from other protocols trying to subsidize their system to go ahead.

Realizing that there would be no definitive answers on the question of liquidity farming, the discussion moved on to Layer 2 of faster Ethereum Uniswap v3 and integrations, but again Liebowitz didn’t give anything away. when questioned, claiming he was only an observer.

The chat that accompanied the video call discussed potential new cash pools, but there have been no conclusive answers as to what will happen when the four farms with more than $ 2.4 billion are closed. .

In concrete development to emerge in the past 24 hours, it appears Protocol Labs General Counsel Marvin Ammori has joined Uniswap as General Counsel. One of the foremost lawyers in the industry, he advised President Obama on Net Neutrality and also advised the Silicon Valley TV show.

A number of legal issues were discussed during the community call and now it looks like Uniswap has the man for the job.



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