June 15, 2021

Uniswap Now Has More Than $3 Billion in Liquidity

2 min read

Uniswap’s liquidity is surging. At press time, the decentralized exchange had $3.18 billion of liquidity.

Uniswap Liquidity increasing

Uniswap has reached this milestone without having any liquidity incentive program currently active.

Formerly, to incentivize Liquidity Providers (LPs), Uniswap’s native token UNI was offered as a benefit. This suggested that LPs who offered liquidity to different pools had 2 unique income sources: to start with, the 0.3% costs produced from the pools, and, second of all, the UNI tokens that were granted to them.

Nevertheless, Uniswap’s liquidity incentives ended on Nov. 17, 2020. The exchange’s liquidity suffered a massive decrease, going from $3.36 billion to $1.52 billion. But, since then, Uniswap’s liquidity has actually handled to rise up gradually. It sits at $3.18 billion at press time, according to Uniswap’s official stats.

Total liquidity, by means of Uniswap Future Incentive Programs Two Uniswap community members, MonetSupply and Coopahtroopa, recently proposed a new reward program. This proposition planned to cut in half the monthly reward allotment from 10 million UNI to 5 million UNI for four different swimming pools. The proposed allowance was as follows:

  • WBTC/ETH –– 1.67 M UNI/month
  • USDC/ETH –– 1.25 M UNI/month
  • USDT/ETH –– 1.25 M UNI/month
  • DAI/ETH –– 0.83 M UNI/month

Nevertheless, for factors unidentified, the proposition was stalled. It successfully went through the first two stages of approval but was never introduced as an official governance proposal.

With an organic increase in liquidity, and in anticipation of the much-hyped Uniswap V3, it remains uncertain whether this proposal will be revived and introduced as an official governance proposition.

On Dec. 24, 2020, the Uniswap Grants Program ended up being the very first governance proposition in the Uniswap ecosystem, to satisfy quorum and to get passed successfully. This program will assist establish Uniswap by providing grants to individuals and events, who include worth to the Uniswap community.

At the time of writing this author held Ethereum (ETH).