In just four days, Uniswap’s first yield farming will come to an end and the community will meet to discuss what will happen
The opportunity to yield farming Uniswap’s initial phase will end on November 17th. In recent days, DeFi enthusiasts and industry analysts have raised concerns about what will happen next. The decentralized protocol has run four different liquidity pools in the past seven weeks.
Pools are earning 583,333 UNI weekly. Although the injection of guarantees of more than $ 2.4 billion has led Uniswap to be the largest decentralized exchange in terms of TVL (blocked total value), its future is at stake. As these incentives are about to end, there is much uncertainty among the holders.
Holders fear that there may be a symbolic price drop imminent in the short term if users move to withdraw liquidity and sell the previously mined UNI. In a long-term perspective, the cut in the new UNI may favor prices.
Another concern is the future of $ 1.1 billion in ETH in the pools.
“On November 17th, $ UNI farming will end. At present, approximately $ 2.3 billion of funds are being used in UNI farming, with $ ETH being the reference token. This means that there are currently about $ 1.1 billion of ETH locked up, about to be launched. Where do you think ETH will go? ”Posted Darryl Wang, DeFiance Capital.
Wang believes the $ 1.1 billion worth of ETH will come out of Uniswap’s staking pools. The former investment banker argued that the capital of farming Uniswap will be moved in search of higher income incentives. Wang, now an investment analyst, suggested that the affected liquidity would be around $ 500 million in ETH and $ 500 million in WBTC and stablecoins.
It is important to note that Ether rose 7% when UNI agriculture was launched. So there is a likelihood that the opposite will happen when it is over.
“Commercial farmers have loaded ETH to capitalize on UNI rewards, and when they are finished, these farmers are likely to unlock their ETH.“
Uniswap conducted a call to the community to discuss their concerns among users. However, nothing concrete was achieved when the call ended without a clear path to follow. No proposal has been made to extend farming or launch new pools. Therefore, it is advisable to tighten the belt, as there may be a lot of volatility in the sector next week.
The community call was hosted by Monet Supply. Notable participants who participated were Uniswap’s chief strategy officer, Matteo Liebowitz, crypto podcaster Matt Aaron and SushiSwap’s 0xMaki.