Unipool — The Uniswap Union

groot- the uniswap guardian

Published in

unipool.finance

5 min readSep 4, 2020

Empowering the providers.

💦 Representing Liquidity

We’re building a union. One to give the backbone of the new financial economy a voice, a forum, the right tools, and the right resources to continue developing our distributed future.

Uniswap has been a key player in the rise of decentralized finance, empowering the entire ecosystem to escape the clutches of monolithic centralized exchanges and participate in a marketplace accessible to all. This revolution has been built upon the resources of thousands of unsung heroes: Liquidity Providers (“LPs”).

Liquidity Providers provide both sides of the trade, meaning every time you buy a token on Uniswap you’re interacting with an LP, who could be anything from a humble yield farmer to a large firm. There are inherent risks in providing liquidity, with capital locked away and exposed to big price movements. You would think that this disparate group of risk-takers would have a medium by which they could make improvements to the protocol, suggest useful ecosystem enhancing tools, or even just have a discussion with other LPs. Alas, this is not the case. Guided with a true belief that when people unite they perform beyond their potential, we decided to do something about it.

Built by the community, for the community, we give you:

🏢 The Foundations — Protocol Design

Giving LPs A Voice

The town hall, a Governance Forum, will enable LPs to discuss potential Uniswap improvements, as well as propose funding for new ecosystem tools and integrations.

A Place For Discussion

A Permissioned Discord Group, allowing proven LPs access to their like-minded peers, providing a platform to help develop and incubate new ideas.

Providing The Right Tools

We want to create an immediate impact, so we’re looking at a number of tools and suggestions to help improve the quality of life for all Uniswap users. These include an ROI aggregator for existing Uniswap pools, a number of Improvement Proposals for Uniswap fees and pool weights, as well as analytics tools and bots for the end-users.

Allocating The Right Resources

A Governance Controlled DAO lets the community decide who to reward and what enabling projects to fund, with 6 million tokens available to help develop and improve the entire ecosystem. Developers who are currently building useful and important tools within the Uniswap sphere will be able to apply for funding from this pool, helping to incentivize the development of future infrastructure.

🤺 Guardians Of Uniswap

It is evident that Uniswap is under attack: each day we see a new fork attempting to seduce liquidity to a competitive platform. Uniswap has empowered an entire new generation of trading, and those of us involved with Unipool believe it is worth defending; we hold a strong belief that handing more power to the community will be the catalyst to propel the platform to the next level.

Everyone involved with getting Unipool off the ground is already a Uniswap stakeholder: liquidity provider or platform user. We’re not a team as you would imagine, but we’re a small subsection of the Uniswap community working together, who will decentralize control of the union as quickly as possible. We have the ability to start building the defenses for Uniswap, and it’s important we start doing so as quickly as possible.

Supporters of the project include Reneil Schmid, Pat Macalister, James Young, Joseph Turner, Marc Weinstein, and Yonatan Ben Shimon

The Unipool DAO will be secured by five trusted signatories, recognized for their achievements and reputation within and beyond the crypto sphere. The signatories that have so far agreed to become part of the Union are

Jaynti Kanani, Damir Bandalo, Sunny Aggarwal, and, Andrew Kang.

👨‍🌾 Token Distribution

A Fair Launch

We have taken inspiration from some truly game-changing projects that have recently launched in a truly decentralised way, with transparency, honesty and community involvement from the beginning. That’s why we believe in a fair launch: no pre-mine, team tokens, vesting or any other shenanigans.

$UNP, our native token, is designed to reward network activity, and so will be distributed autonomously to all Uniswap LPs offering liquidity to the top 100 paired pools on Uniswap. The amount of $UNP tokens received will be based upon the ratio of their liquidity provision versus the total amount of liquidity within Uniswap.UNI Economics

Total Supply: 60,000,000 UNP
Reserved for Unipool DAO: 6,000,000 UNP
Supply For Distribution To LPs: 54,000,000 UNP

In order to seed the project and begin community-led initiatives, there will be an initial distribution period of 5 weeks, where 25% of the total possible supply will be rewarded to LPs.

Initial Dispersal: 15,000,000 UNP (3,000,000 per week)

Volume Adjusted Supply

The main distribution period will continue for 104 weeks (2 years) from the end of the initial period, with a maximum of 675,000 $UNP distributed every week. The weekly distribution amount is linked to the change in overall Uniswap volume compared to the time that the main distribution begins, with weekly distributions proportionally reduced as Uniswap volume increases (and increased if Uniswap volume decreases). In this way, early Uniswap LPs will be rewarded with an outsized percentage of the Unipool inflation as the Uniswap exchange grows.

Maximum Weekly Distribution: 675,000 UNP

As an example, if Uniswap overall volume increased 100% in the week after the main distribution begins, the next week’s distribution would be reduced by 50%, with additional tokens burned. If total volume decreased or remained the same, the maximum 675,000 $UNP would be distributed.

This means that although the total possible number of tokens in circulation will be 60 million, it’s likely to be less as Uniswap increases in popularity and volume.

✊ The Time Is Now!

Uniswap is under attack, with an expensive fishy foodstuff usurper already attracting up to 95% of Uniswap’s total liquidity to its pools in order to entice LPs to its forked platform. Unipool will reward those who maintain loyalty to the original, proven platform, preventing splits in liquidity and allowing DeFi to grow around a safe, proven environment.