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Saturday, October 16, 2021

Uniswap Has Lost $10 Million UNI As Defi Education Fund Dumps It

The much-debated Uniswap sponsored DeFi education Fund has gone ahead and liquidated much of its donation funding into stablecoins. As a result of this move, the entire program has been attracting major condemnation from several high-profile investors in the crypto community.

On the 12th of June, the fund sent out a tweet where it stated that it was selling 500,000 UNI to Genesis Trading for a sum value of 10.2 million USDC in what has been since decreed an over-the-counter trade. This comes despite the UNI proposal for the fund which indicates that it would be liquidating around 1 million UN over a period spanning four to five years. 

Uniswap In Major Controversy

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Back in May, Harvard Law Blockchain- a student organization- coupled with Fintech Initiative brought out a governance proposal that advocated for creating funds whilst allocating around 1 million Uniswap tokens.

This would then be sent to those that support educational initiatives coupled with lobbying for policies for the sector of decentralized finance. When the month began, the proposal was passed and the tokens seemingly transferred to the very fund. 

This incident has brought forth several concerns about the centralization of the entire governing process of Uniswap- while calling into question the very transparency as well as the motives which drive this fund. Several sleuths in the blockchain network have been able to identify one of the multi-signers behind this fund- Larry Sukernik.

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This individual had sold around 2,612 UNI in a span of a few hours before the OTC deal. Interestingly, Sukernik did defend this trade on Twitter- where he stated that the UNI he traded was from a grant that he had just received a couple of weeks ago. 

Chris Blec, the DeFi Watch founder, has already emphasized that Harvard Law has made it pretty clear that the overall intention was to sell the UNI of 1 million over a period of 4-5 years and not just liquidate it at one go. He further stated that the fund had sold almost 50% of the 1 million Uniswap tokens for USDC without any explanation- which they definitely have to expand upon. 

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