Proposal for small-caps LM rewards for UNI token.
- Uniswap is one of the largest DeFi assets
- Liquidity Mining for Uniswap will bring significant exposure of Bancor technology to the Uniswap community
- Encouraging Uniswap token holders to stake in Bancor will be the most profitable single asset exposure staking opportunity for UNI tokens available on the market.
- Uniswap has significant capital and institutional backers, and getting their attention is a key to push Bancor development further
Token contract address:
Uniswap is a decentralized exchange built on Ethereum that utilizes an automated market making system rather than a traditional order-book. Instead of matching individual buy and sell orders, users can pool together two assets that are then traded against, with the price determined based on the ratio between the two.
Uniswap has copied the Bancor swapping formula and excluded connector token (BNT) from the requirement to set up a pool.
Currently Uniswap does not support any type of staking mechanism. The only way to utilize the token is by providing liquidity to protocols such as AAVE (0.02% APY), Compound(1.16% APY) or Cream (0.02% APY).
Therefore, staking Uniswap on Bancor protocol should be the most attractive venue for UNI token holders.
Tokenomics & Token Metrics
UNI holders are responsible for governing the protocol. Their primary concern revolves around voting a set of protocol delegates that can help steer the future direction of Uniswap v2. UNI holders can also vote specific token pools for which can collect fees.
Other responsibilities include:
- Managing the funds held in the UNI community treasury
- Determine the tokens that belong on the Uniswap default token list (tokens.uniswap.eth)
- Ownership of the Uniswap ENS domain name
Nowadays token has no real utility, even voting is considered highly centralized.
Leveraging the above information, might convince Uniswap tokens holders to move their assets to Bancor ecosystem and swap they UNI for BNT to participate in a truly decentralized organization.
Token distribution schedule
Uniswap is also a highly inflationary token, therefore, after implementation of Bancor Vortex fees, BNT will become a significantly more attractive asset to hold in regards to dilution.
Community and Communication
https://twitter.com/Uniswap 223K followers
https://www.reddit.com/r/UniSwap/ 25K members
Uniswap 37K members
Uniswap has a significant growing community, acquisition of a portion of this will significantly grow Bancor ecosystem participants and gini coefficient.
Audit performed by Consensys
Market and Trading Data
Uniswap trading volume on both centralized and decentralized exchanges is equal to around 3,8B USD where the majority of trading is going on CEX.
As we can see below, Uniswap UNI/ETH pair is the main market for UNI on DEXes, wich average daily volume of around 52M USD.
Becoming the deepest liquidity pool for UNI token might be hard, but aiming towards the second deepest pool is in our reach.
The main reason behind LM rewards on UNI token is to bring more visibility to UNI maximalists about the Bancor network.
We can see a recent spike in the number of active addresses. A portion of these users who are new holders of Uniswap tokens will be easiest to convince to use and swap their UNI tokens for BNT tokens.