Here is UNI, the Uniswap DEX token
Uniswap presented its governance token that many in the DeFi sector were waiting for. The announcement came from the development team of the Decentralized Exchange (DEX) on September 16 and after being listed on Coinbase PRO and Binance, it recorded a considerable increase in both price and trading volume.
The move and the release of the token is to be considered as a direct response to the policies of Tokenomics of Sushiswap, the famous fork that in the last month took away about $ 800 million of liquidity from Uniswap. The derived platform, in fact, through liquidity mining has succeeded in making people talk about itself very consistently in the world of DeFi. The two projects are currently fighting for supremacy in the automated market maker space, the so-called Automated Market Makers (AMMs).
What is liquidity mining
Liquidity mining is a process that is taking hold in DeFi and essentially consists in providing liquidity to a specific pool (eg ETH / USDT): depending on the time and amount provided by the user, the latter is rewarded with tokens governance. The liquidity provider (LP) therefore receives both the fees directly from the pool and the governance tokens, managing to earn very high APYs.
Uniswap will therefore launch its own liquidity mining program to allow users to earn UNI by providing liquidity to their pools which will initially be ETH / USDT, ETH / USDC, ETH / DAI and ETH / WBTC.
The token and its characteristics
The development team then provided various information and characteristics of this token. First of all, 1 billion UNI have been minted and will become accessible within 4 years. The initial assignment is as follows:
- 60% to community members
- 21.51% to team members and future employees
- 17.80% to investors
-0.069% to advisors.
After the token distribution the token inflation rate will be 2% every year, ensuring continued participation and contribution to Uniswap at the expense of passive holders. UNI therefore officially consecrates Uniswap as a publicly owned and self sustainable infrastructure, while continuing to carefully protect indestructible and autonomous qualities.
The price and the initial distribution
The first tokens were distributed to anyone who had used Uniswap before September, providing almost 29,000 addresses with a quantity of UNI equal to 400. After the release, the price literally exploded, marking a change from the initial $ 2.8 to about $ 5.8 after one day only. The capitalization is therefore around $ 430 million, making the token fall into the top 50, according to CoinGecko, and “giving” users a figure that after the first trading day is around $ 2000 per address.
After the release of the UNI token, the platform returned to the top of the DeFi ranking for capital blocked within it, doubling those already present a few days ago.
UNI as a governance token
UNI holders will also be responsible for ensuring optimal platform development in order to increase the value of the token itself. UNI is therefore a governance asset that can be used to vote on changes and developments in this DEX that is increasingly entering the heart of the DeFi world. The timing of the release of these tokens was excellent, demonstrating once again the robustness of the project and the involvement of the development team.
And you? Have you claimed your UNI?
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