Uniswap has officially issued coins. Have you participated in this wave of liquidity mining?
On the morning of September 17, Beijing time, the decentralized exchange Uniswap officially released its governance token UNI. In an official blog post, Uniswap mentioned that the initial total of UNI is 1 billion, and these tokens will be gradually released within 4 years. Among them, 60% of the tokens will be allocated to community members, 21.51% will be allocated to “team members and future employees”, 17.8% will be allocated to investors (4-year linear unlocking), and the remaining 0.069% will be allocated to consultants (4-year Linear unlock).
After 4 years, UNI will be issued at an annual inflation rate of 2% to encourage participants to continue to contribute to Uniswap. It is worth noting that there are currently about 150 million UNI tokens that will be immediately allocated to Uniswap users (including liquidity providers, users, etc.) before September 1.
Among them, each transaction user can receive 400 UNI tokens (a total of 250,000 users can be divided into 100 million UNI), and liquidity providers can share the remaining 49 million UNI rewards.
About UNI's liquidity mining
According to the blog content, starting from 20:00 on September 18, 2020 Beijing time, Uniswap will officially start liquid mining activities. The initial mining activities will continue until November 17, 2020, and the following four Uniswap v2 mining will be supported. Mining pool:
ETH/USDT; ETH/USDC; ETH/DAI; ETH/WBTC. Each liquidity pool will allocate 5 million UNI tokens, which is equivalent to 833,300 UNI per day.
what does this mean?
First of all, this will cause Ethereum to be very congested in the short term. According to data from ethgasstation, the current average gas price of the network exceeds 400 Gwei, which is close to the historical high value.
The reason for this phenomenon is that hundreds of thousands of Uniswap users compete to receive their UNI token rewards in a short period of time, and due to Ethereum's block restrictions, gas fees have continued to soar.
After Uniswap starts liquidity mining tomorrow, this congestion will still not be relieved, so in the short term everyone must be psychologically prepared (note: transaction failure will also deduct the handling fee).
Second, the official release of Uniswap means that the competitiveness of imitations such as sushi is reduced. For participants of these imitations, this is definitely not good news.
Third, should I buy UNI tokens?
Simply put, there are currently 150 million UNI tokens in circulation, and these tokens are equivalent to free candy, and the current valuation of $2 per token is already a bit high, so purchase it with caution.
Fourth, the already cool liquidity mining was once again driven by Uniswap's own efforts, but this time the main target of the doll is ETH, and the biggest winner is the ETH holder.
Finally, for liquidity mining, we still have to remind that this not only involves the risk of exchange rate fluctuations, but also the risk of impermanence, so you need to understand these risks before deciding whether to participate.