Uniswap is one of the first decentralized exchanges on the Ethereum blockchain. With Uniswap, users can swap and add liquidity in a permissionless way. Uniswap is active on five chains, including L2s, and more are on the way.
$UNI allows holders to have governance over protocol and treasury.
As one of the first DEXs, demand for $UNI comes from people who believe in the team and the protocol. The only utility of the token is governance rights, so there are discussions to add more utility to the token, such as sharing fees with holders.
Uniswap creates value by providing a new concept to liquidity pools: concentrated liquidity. Also, high liquidity allows lower slippage rates. Moreover, no KYC, permissionless, or country restrictions.
$UNI token holders do not get any of the fees generated from the pools; its only utility is governance rights. As an Amazon stock example, people don’t buy it expecting dividends but to believe in the product itself.
Unfortunately, Uniswap does not generate any income from LPs. The protocol only has $UNI tokens in the treasury.
|Problems & Solutions|
UNI didn't start with a token and implemented it due to Sushiswap launching one. The real value capture is yet to be found.
... coming soon
Uniswap V2 Launch
V2 allows ERC20/ERC20 Swaps
Uniswap V3 Launch
New concept: Concentrated Liquidity
UNI Token created
Allocation and Emission.
No calculation connected