September has been a busy month for the popular DeFi lending platform, Uniswap. The popular protocol on Ethereum announced UNI’s initial liquidity mining program which is slated to go live on the 18th of September will continue till 17th November. It will essentially target the following four pools on the V2 of Uniswap.
According to the official blog post, the liquidity mining pools in question – USDT, DAI, USDC, and WBTC, is set to open for UNI rewards which will enable them to earn an allocation of 5 million in the native token, each over the period of the next two months which further breaks down to 83,333.33 UNI per pool per day or 54 UNI per pool per block starting tomorrow.
The blog further read,
“After 30 days, governance will reach its vesting cliff and Uniswap governance will control all UNI vested to the Uniswap treasury. At this point, governance can vote to allocate UNI towards grants, strategic partnerships, governance initiatives, additional liquidity mining pools, and other programs.”
This development came along with the Uniswap Protocol’s governance token UNI going live on Ethereum mainnet.
Shortly after which pending transaction on the Ethereum witnessed a considerable spike. While the chart has returned back to normal, this was indicative of the fact that users were flocking in to take a bite from the UNI pie. Following this, the gas fees also surged.
Meanwhile, Ethereum locked in Uniswap, which had been in a decline for some time now, noted uptick. Similar was the case with TVL [USD] as well as Bitcoin locked in the DeFi protocol which also increased right after the announcement.
The news further prompted Coinbase Pro to list the token on its platform. According to the announcement, the UNI token will be tradable against the USD in all the covered jurisdictions of the cryptocurrency platform except New York.
This could be a major booster for the UNI’s tokens price in the coming days as a Coinbase Pro happens to be one of the world’s most popular consumer-facing platforms and is strictly compliant with regulations. Hence, listing announcements on the platform for any token gives a perspective of the project’s authenticity. If history were to repeat itself, UNI could witness rallies in the days to come.
A quick primer: Uniswap has been targeting to solve the contentious problem of decentralized exchanges’ – liquidity, by enabling the exchange to swap tokens without depending on buyers and sellers creating that liquidity. Hence, as liquidity mining gained traction along with the growing DeFi craze, Uniswap’s popularity among the market participants and commentators dramatically increased.
While TVL declined significantly after the SushiSwap fiasco as $830 million worth of crypto were moved over to the forked protocol last week, Uniswap sprung back up in the action and was ahead of its “copy protocol” on the DeFi leaderboard.