UNI Letters #8
Weeks 48 & 49 of 2021 🦄
On 4th of December 2021 Uniswap v2 and v3 cumulatively did $5.725 billion in trading volume in just one day, for comparison year prior to that it did $10 billion in an entire month of November, where as this November its monthly trading volume hit $84 billion, an 8th fold increase YoY
Governance
An onchain vote wether Uniswap v3 should be deployed to Polygon? You can cast your vote until December 18th, there are currently 30mil UNI votes for and 500 000 against, still no quorum reached
Updates
Opyn have announced squeeth mainnet launch on 10th of January (please don’t ask what it is, the space is evolving too fast to keep up and understand all the products, still need some time to wrap my head around it)
Perp have released v2 on Optimism that uses Uniswap v3 LPs, join the community call to find out precisely how
Reads
Chainsight Analytica have published dune dashboard and a twitter thread with example of their observation of just-in-time liquidity (JITL) miner extractable value (MEV) attack, if you are not familiar with the concept right now there are 2 bots operating this strategy, these bots work by adding narrow range liquidity into the pool before swap, capturing fees, and exiting the pool in the same block (liquity sandwich), thus it benefits the end user swapping the tokens by lowering the slippage, but on the other hand it takes part of profits from liquidity providers. In near future I could envision there will be a marketplace, protocol or an interface allowing people to swap large amounts and tap into available liquidity outside the pool per swap/block basis, thus going full circle from AMM back to order books
Alex Kroeger’s article on UNI being an oracle token and utility it could bring to the protocol, nicely briefs the history of uniswap oracles, provides actual v3 oracle usage data on dune analytics and its pros/cons
revert.finance overview blog post of ribbon.finance liquidity mining program on v3, in short 17 top addressed mined 80% of rewards, most copying simple strategy that onetickdao.eth started, of actively concentrating liquidity in a single tick thus capturing most of the fees. There is also already a fork of staker contract enabling to define range for liquidity mining programs
universe.finance have written series of article showcasing powerful liquidity analysis tools like backtesting, still limited to few pools but could be a very helpful insight for LPs
Grantees
According to UGP recent tweet, TWAP oracles are top priority on their RFPs list for funding, so if you are building or got any ideas definitely reach out to the them
Events
Community Call #16 will be held on Wednesday December 13th 16:00 EST on discord, there will be speakers for perp.com talking about how they use uniswap pools for their v2 and whalegoddess.eth sharing her findings and research on uniswap governance
Edition #8 Project
There are still couple of more days left of Gitcoin’s GR12 to fund public goods, so if you haven’t done so or checked out the grantees definitely scroll thru them, there a bunch of cool projects to discover and possibly fund too. (uniletters are there too among with many great projects building on top of Uniswap Protocol)
Thank you for reading and stay safe!
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Much love @wijuwiju