The biggest craze of 2020 in the crypto space has been yield farming, and popular decentralized protocol Uniswap has now stepped into this sector with the launch of its native UNI token with yield farming rewards on four new pools.
The launch was highly anticipated among Defi enthusiasts especially because Uniswap is one of the largest decentralized exchanges, and hence draws in a wave of investors eager to farm.
According to the official announcement, 60% of UNI’s genesis supply has been allocated for the community, and a quarter of the supply has previously been distributed amongst early users.
Now, one billion UNI has been minted for distribution over a span of the next four years.
In the next four years, 21.51% of the funds will be distributed to team members, 17.80% to investors, and 0.069% to advisors. Early liquidity providers, users, and SOCKS holders will be airdropped the 15% based on a snapshot ending on Sept 1, 2020.
A perpetual inflation rate is also set at 2% and will come into effect after four years to assure continued participation and contribution to Uniswap.
For all those waiting for this new product, the liquidity mining program will be launched on Friday, Sept 18 2020 12:00 am UTC, running until Nov 17.
This is a bullish scenario for Ethereum as the four pools are ETH/USDT, ETH/USDC, ETH/DAI, and ETH/WBTC.
5 million UNI tokens or 83,333 per pool per day will be allocated for every pool to liquidity providers in proportion to how much liquidity is in each pool, allowing Uniswap users to earn both a portion of the trading fees and a share of the native tokens.
The new launch took the industry by storm and UNI already got listed on Binance for four payers namely UNI/BTC, UNI/BNB, UNI/BUSD, and UNI/USDT, just an hour from launch.
The Community is betting on UNI
Members of the crypto community and several industry leaders as well have all voiced bullish opinions regarding the launch.
Robert Leshner, the founder of Compound Finance, highlighted Uniswap’s usage of Compound Governance system contracts to manage the protocol while adding:
Similar sentiments were portrayed by Cinneamhain Ventures Partner, Adam Cochran, who tweeted:
Furthermore, at launch, users were able to claim 400 UNI instantly, which at the time was worth approximately $1,464, which is basically free money. Messari’s researcher Ryan Watkins described this as “stimulus” for Ethereum users in a tweet: