Uniswap Rewards Have Ended — A New Use-Case for Uniswap LP Tokens

As UNI rewards have ended on November 17th, this leads to 13,000 people with a total of 1.75B in locked up liquidity contemplating their next move.

Article on Cointelegraph

Uniswap is believed by many to remain the most trusted DEX, with the most volume. The recent end of UNI rewards has caused a 40% decrease in total liquidity provided in Uniswap.

This article is for those who are looking for alternatives to utilize their Uniswap liquidity. What you’re reading proposes a new use-case of Uniswap liquidity providers, in the form of entering a new token ecosystem.

What I am referring to is a rebasing token, which utilises it’s own velocity to rebase it’s total supply. This relationship behaves in an inverse manner.

  • Higher velocity = decrease in token supply
  • Lower velocity = increase in token supply

This relationship is based on Austrian School of Economy views, which believes that velocity is the true measure of a value of currency. More on these views can be read on “Answering our Tokenholders: Why Choose Velocity?”

What is relevant to Uniswap liquidity providers is that they can farm the newly found, community-governed VLO by staking their Uniswap USDC/USDT/WBTC/DAI LP tokens in the pools at velotoken.fi.

The farming of VLO began in Novermber 4th and ends in Dec 2nd, 2020. By then, the 100,000,000th VLO will be farmed and the ‘rebase function’ begins. Full details of the tokenomics are explained in the whitepaper, which can be found in our communities in Discord and Telegram.

Having successfully undergone a fair distribution launch, the new UNI LP staking pools (opened Nov 18th) are open until the end of the farming period, Dec 2nd.

Every UNI token holder is welcome to participate in the VELO token network. Feel free to discuss with other members in Discord and Telegram to get a feel for VLO.

Austrian School economist, historian, logician and sociologist.