Finance Redefined: Uniswap's bang ends in whimper, Sept. 16-23

Published on by Cointele | Published on

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The biggest event of this week was definitely the sudden release of Uniswap's token, UNI, which enriched many DeFi users by at least $1200 each.

Uniswap gave 400 of its tokens to anyone who had ever traded with the protocol, even if the interaction somehow failed.

Sadly, I wasn't one of them, and to be honest I barely used Uniswap anyway.

In my treatise about decentralized exchanges I highlighted a few disadvantages of Uniswap and others like it.

Not saying that Uniswap is bad, it just didn't satisfy my needs and I had better alternatives.

Obviously Uniswap launched a yield farming incentive shortly after, but this one is actually quite great.

That one's another major issue of Uniswap - liquidity providers may easily end up taking out less than they put in initially if sudden price changes occur.

The incentives allowed Uniswap to break all total value locked records once again and become remarkably liquid, perhaps more so than many centralized exchanges.

Should Uniswap have the most valuable token?Uniswap seems to have quickly heeded lessons learned from the SushiSwap debacle - reward the community with a token so that they'd have something to lose if they were to move to "Greener" pastures.

So while I agree that Uniswap's token probably should be worth more than most other DeFi governance tokens, the market seems to be lacking that oomph to put it there.

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