End of liquidity mining on Uniswap
Last September, the Uniswap protocol unveiled its governance token, the UNI. In addition to an airdrop of 400 UNIs for all of its users, Uniswap has implemented a liquidity mining program allowing liquidity providers in major pools to generate UNIs.
However, after 2 months of distribution, liquidity mining ended on Tuesday, November 17th.
The reaction will not be long in coming. In a matter of days, Uniswap's cash flow is melting like snow in the sun. In fact, between November 14 and today, Uniswap has lost almost 50% of its cash, from $ 3 billion to $ 1.54 billion.
https://journalducoin.com/wp-content/uploads/2020/11/uniswap_tvl.png
Cash flow on Uniswap - Source: DefiPulse
At the same time, rival Sushiswap is rubbing his hands and earning $ 200 million in cash. In addition, Sushiswap updated its liquidity farming program to add a BTC pool through wBTC.
Uniswap has not said its last word
Obviously, the discontinuation of liquidity mining on Uniswap did not please UNI owners, nor liquidity providers.
So some get organized. This is particularly the case with Cooper Turley, a contributor at DeFi Rate and an investor in the DeFi ecosystem, who published a survey aimed at restoring liquidity mining.
According to his proposal, liquidity farming would be relaunched for a period of 2 months, with 1.25 million UNI allocated monthly to each of the 4 pools WBTC / ETH, USDC / ETH, USDT / ETH and DAI / ETH. The reward would therefore be divided by 2 compared to the first liquidity mining.
If this proposal were to obtain 25,000 positive votes in 3 days, a second “consensus check” will be carried out over 5 days. If this second round also makes it possible to reach 50,000 positive votes, a formal modification could be submitted: it would have to obtain 40 million positive votes to be validated. A quorum difficult to achieve, when we know that many proposals have already failed on this pitfall.
Until then, no additional UNI tokens will be distributed. Moreover, nothing is yet certain for this proposal. Indeed, a day after its launch, the result is already very tight with 53% for and 47% against.
