Full Disclosure: Delphi Ventures holds UNI.

Uniswap is a DeFi juggernaut. The AMM is currently #1 on DeFi Pulse’s leaderboard with ~$3 billion TVL and ~55% of the DEX market share. So whenever something changes for Uniswap, it can have ripple effects across the rest of crypto. At the time of writing, it’s been just over an hour since UNI rewards ended. Uniswap’s TVL has already declined ~33% since its peak of $3.3B TVL a few days ago (losing 25% just in the past hour). This is part one of two posts where I’ll be diving into what the end of UNI rewards means. The second part will be a post-mortem once we have some time and data to digest what happens. Without further ado, let’s dive right in.

On September 16th, Uniswap made waves within the crypto space when they rewarded its community of users with 400 of their UNI governance token. Subsequently, Uniswap launched a liquidity mining program where people were incentivized to provide liquidity for a few specific pools to earn their governance token. The program distributed 20 million UNI to LPs over 2 months, split evenly between the WBTC/ETH, USDC/ETH, USDT/ETH, and DAI/ETH pools. This meant each pool was receiving roughly 83,333 UNI per day.

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