Uniswap May Re-Up Rewards as SushiSwap Angles to Catch Itinerant Yield Farmers
Uniswap community members are scrambling to update yield farming rewards for the automated market maker’s (AMM) native token UNI as the initial liquidity mining program sunsets on Nov. 17.
A governance vote for continuing farming on the same four asset pairs – WBTC/ETH, USDC/ETH, USDT/ETH and DAI/ETH – was proposed by Audius strategy lead Cooper Turley and pseudonymous “monet supply” Monday. The proposal will have to pass a series of governance polls before farming restarts Dec. 4.
UNI liquidity mining allocations would be half of the original 2.5 million UNI tokens delegated per asset pool on a month-to-month basis. Farming rewards were first created in September for a limited two month run following a surprise airdrop of UNI tokens to the AMM’s developers, users and investors.
UNI is trading hands at $3.50, according to CoinGecko.
Uniswap’s total value under lock (TVL) first broke $1 billion in September after introducing UNI rewards. The AMM peaked at just over $3 billion in TVL on Nov. 13.
At the same time, competing AMM SushiSwap is apparently gunning for Uniswap’s liquidity. The rival AMM is discontinuing certain staking pools while reallocating yields to the expiring pairs on Uniswap (should the governance plan fail).