Uniswap Introduction：

Uniswap is a significant player in the decentralized finance (DeFi) ecosystem, operating as a decentralized cryptocurrency exchange (DEX) built on the Ethereum blockchain. Unlike traditional exchanges, Uniswap employs an automated market maker (AMM) mechanism, removing the need for an order book and instead utilizing liquidity pools for token trading. The platform's journey began with Uniswap v1 in 2018, introducing a simple interface for ERC-20 token trades on Ethereum. It evolved into Uniswap v2 in 2020, adding features like ERC-20 to ERC-20 pairs, improved efficiency, and flash swaps. Uniswap v3 further refined the protocol by enhancing capital efficiency and introducing concentrated liquidity, allowing liquidity providers (LPs) to allocate funds within specified price ranges. This version marks a significant shift towards more sophisticated trading mechanisms and has provisions for LP positions to be represented as non-fungible tokens (NFTs). Uniswap's innovative approach has led to significant growth and adoption within the DeFi space. Its governance model is centered around the UNI token, which gives holders the right to vote on key protocol decisions. The platform's decentralized nature ensures that users maintain control over their funds, contrasting with the custodial risks associated with centralized exchanges.

Uniswap Statistics：

According to Defillama data, as of 2024.3.4, Uniswap’s 24h trading volume was 1.995b, accounting for 30.83% of the total DEX trading volume, far ahead of the second-placed Raydium (12.21%).

Uniswap New Proposal Content：

The DEX protocol has often been critiqued for its native token's inability to capture protocol revenue, which has, in turn, diminished user enthusiasm for holding DEX tokens. Therefore, to solve this problem, Erin Koen, head of governance of the UniSwap Foundation, released a new proposal to "Activate Uniswap Protocol Governance" on February 23, 2024. The main content includes the following three points:

1. Upgrade Uniswap Protocol Governance to enable the permissionless and programmatic collection of protocol fees

2. Distribute any protocol fees pro-rata to UNI token holders who have staked and delegated their votes

3. Allow for governance to continue to control core parameters: which pools which are charged a fee, and the magnitude of the fee Because this proposal effectively increases the income of UNI token stakers and enhances the utility of the token, this proposal has led to a more than 50% increase in the price of UNI in a single day.

Latest progress on proposal voting：

As Uniswap launches the "Activate Uniswap Protocol Governance" proposal voting, it is reported that this on-chain voting will end on March 7. As of now, according to Snapshot data, the proportion of yes votes is 100%. https://snapshot.org/#/uniswapgovernance.eth/proposal/0xad7e3612d11d56b21f0b2274e4ce825163bc1873d0e2ef809a3a98733df992a7

UNI Token Staking APY Calculation：

According to the content of the proposal, once the vote is successfully passed, UNI token stakers will enjoy 1/4-1/10 of the LP fee reward. Soso Value calculated the return rate of UNI token based on relevant data： According to a tweet from dYdX founder Antonio, Uniswap generated a total of $306m in LP fees in the past 180 days. Therefore, we use 612m as Uniswap’s one-year LP fee for calculation.

In terms of Staking amount, we use the maximum Staking amount equal to the maximum circulation amount - 750 million UNIs for calculation.

Finally we came to the conclusion：

• On average, each Staking UNI token can receive a share of US$0.08-2.04 per year.

• If the holding cost of UNI is US$6 per coin (because the price of UNI fluctuated between $6 and $7 for a long time before this proposal), the annualized rate of return ranges from 1.36% to 34%

• If you buy UNI tokens when they rise to $12/coin, the annualized rate of return is 0.68%-17%

Of course, because this proposal has damaged LP’s original income to a certain extent, there is a possibility that LP Fee will decrease. SoSo Value will pay attention to relevant data changes at any time and bring you a first-hand receipt analysis report.