Uniswap
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.
Categories:
DeFi
Updated:
2023-03-10
Tags:
AMM
Ticker:
UNI
Token Strength.
Token Utility:
$UNI allows holders to have governance over protocol and treasury.
Demand Driver:
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.
Value Creation:
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.
Value Capture:
$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.
Business Model:
Unfortunately, Uniswap does not generate any income from LPs. The protocol only has $UNI tokens in the treasury.
Loading
Protocol Analysis.
| 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. |
|---|---|
| Predecessors | Etherdelta |
Investment Take
... coming soon
Tokenomics Timeline.
2018-11-02
Uniswap Launch
Uniswap Launch
2020-05-18
Uniswap V2 Launch
V2 allows ERC20/ERC20 Swaps
2021-05-05
Uniswap V3 Launch
New concept: Concentrated Liquidity
2022-09-16
TGE
UNI Token created
Loading
Allocation and Emission.
No calculation connected
Loading
Resources.
Author.
Loading
