Uniswap, one of the world’s biggest decentralized exchanges, has conducted its 1st community call to discuss what to do next when Uniswap farming ends on 17th November.
But this call concluded without any clear direction and proposals for extension of Uniswap farming or launch of new pools so the upcoming week will be a volatile one.
There are 4 ETH-based pools run by Uniswap since 17th September that have earned 583,333 UNI/week/pool. The injection of the collateral worth of $2.4 bn has made DEX the leader of the Defi list according to total value but now it is approaching its end.
What Do Uniswap Holders Fear?
UNI holders fear that there may be dumping of token prices if they withdraw liquidity after selling off mined UNI when incentives end.UNI prices are topping at $3 after the last week.
Around $1.1 bn ETH can be withdrawn and reinvested or sold into incentives and this is a matter of concern. ETH was accumulated when the Uniswap farming began and the opposite can happen if it ends.
The host of this community call is “Monet Supply”, a Uniswap member. It started with a cover of current governance issues however it got steered towards what will be happening next after liquidity mining concludes on 17th November.
Opinion Of The Experts
Matt Aaron, a Crypto podcaster asked about these internal discussions to prevent a “vampire attack” like the SushiSwap where a clone provided large incentives for draining Uniswap liquidity. Aaron also asked how Uniswap will incentivize their users once the rewards end.
Matteo Liebowitz stated “no comment” and added that any liquidity decisions would come from community members and not from the team of Uniswap. OxMaki, SushiSwap stated that the incentive or subsidy would have to be paid by someone, in this case, Uniswap token holders. Uniswap’s lead by trader numbers on the DEX list has nothing to do with the mining of liquidity programs. There is nothing to fear from other rules trying to incentivize their system to go ahead.
After nothing conclusive came on the farming issue, the discussion steered towards Etherium 2nd layer Uniswap v3 but Liebowitz gave nothing away by stating that he was a mere observer.
The chat supplementing the virtual call mentioned some unique liquidity pools, however, there was nothing conclusive about what is going to happen when four farms consisting of $2.4 bn closes.
In another development, Mavin Ammori, General Counsel, Protocol Labs, has become the Chief Law Officer of Uniswap. Being a lawyer of a high profile, he was the advisor of Obama on Silicon Valley, TV show, and Net Neutrality.
There were a variety of legal problems discussed in the call. It appears now that Uniswap has the right man to handle these issues.