On Wednesday, Uniswap launched its governance token UNI. This token will enable shared community ownership via the implementation of an on-chain governance system. The governance system will encourage Uniswap protocol development and usage.
As per the blog post, one billion tokens have been minted. These tokens will be available over a four-year period. 60% of these tokens will be allocated to community members and 21.51% will be allocated to team members and future employees. 17.80% of tokens will be allocated to investors with a four-year vesting schedule and 0.069% will be allocated to advisors with a four-year vesting cycle.
Uniswap is one of the leading decentralized exchange protocol on Ethereum. In recent weeks, Uniswap has begun to oppose centralized exchanges on daily volume. During the last week, Uniswap generated $3.02 billion of volume, out of which about $9 million went to liquidity providers (LPs).
Uniswap is the leading DEX that tops $10 billion in monthly traded volume. Till September, the traded volume stands at $9.9 billion that accounts for 66% of all DEX trading volumes. The success of Uniswap exchange depends on the ease of its liquidity provision. Its liquidity has increased since the start of the year. Also, it has seen huge spikes due to the liquidity mining events like SushiSwap.
The user base of Uniswap has grown with this year’s DeFi boom. Uniswap has integrations across hundreds of applications.
Who received the UNI tokens?
15% of the available tokens are claimed by historical users, liquidity providers, users, and SOCKS redeemers/holders. The governance treasury will retain 43% [430,000,000 UNI] of UNI supply to distribute it among contributor grants, community initiatives, liquidity mining, and other programs. Governance has access to vested UNI from October 18 2020 12:00 am UTC.
The historical liquidity providers can claim 49 million UNI. 10.06% is split evenly across all 251,534 historical users addresses 100,613,600 UNI. 400 UNI can be claimed by each address that has called the Uniswap v1 or v2 contracts. It includes ~12,000 addresses that consist of the submitted failed transactions.
The Uniswap blog post reveals the 4-year distribution of the UNI tokens.
The initial liquidity mining program started on September 18, 2020, at 12:00 am UTC and is supposed to run till November 17 2020 12:00 am UTC. The mining program will target four pools on Uniswap V2:
According to the blog post, 5,000,000 UNI will be allocated per pool to LPs proportional to liquidity, which roughly translates to 83,333.33 UNI per pool per day and 13.5 UNI UNI per pool per block. These UNI tokens are not subject to vesting.
After a period of 30 days, governance will reach its vesting cliff and the Uniswap governance will have control over all the UNI vested to the Uniswap treasury. At such a point, governance can vote to allocate UNI towards grants, strategic partnerships, governance initiatives, additional liquidity mining pools, and other programs.
Many centralized exchanges have listed UNI within hours of its launch at 00:13 am UTC.
The Uniswap application has the following features:
Swap: With the swap feature, the users can swap Ethereum with different ERC-20 tokens.
Pool: The pools feature allows users to earn tokens by providing liquidity. The tokens are deposited into smart contracts and the user will receive pool tokens in return.
Vote: The voting feature allows the UNI token holders to vote for the best results. The UNI holders can ensure that governance decisions are made in compliance with the applicable laws and regulations. To assist the decisions, the UNI token holders can vote on the tokens for which they will collect fees.
How to claim 400UNI?
Step 1: Visit Uniswap
Step 2: Click on claim UNI
Step 3: Paste your ETH address
Step 4: Ensure that you have the necessary ETH balance to pay your gas fees.
Step 5: You have received you 400 UNI.
UNI Price Analysis
At the time of writing, the UNI price is $5.67, having a market cap of $653,584,864 and a trading volume of $1,724,759,626. The token has seen its all-time high of $8.40 on Sep 18, 2020 (1 day), and all-time low of $1.03 on Sep 17, 2020 (3 days). The currency has a market cap rank of number 34.
Uniswap is a decentralized exchange for small traders. It does not require any listing fees and has the cheapest gas fees. It is an open-source project on Github and allows any individual to create any ERC token as long as they have an equal amount of ETH to back it. Uniswap is the current most active DEX among all other exchanges and allows various DeFi tokens to be traded on the platform.