July Voting Update
Uniswap Onboarding Package - Gnosis Chain
Vote: $250k
Type: Snapshot
Our team voted to allocate $250k worth of $UNI towards Gnosis Chain incentives. This is a strong starting point for an initial round of incentives. The current DEX market dominance on Gnosis is led by Balancer, which in our opinion, means there’s a clear market opportunity for a more capital efficient, concentrated liquidity AMM to capture market share. Simply introducing Uniswap to Gnosis should increase the TVL of v3 pools off the bat. This deployment has technically been live for over a year now, but there hasn’t been a UI for LPs and swappers to interact with the protocol. Utilizing Oku as the FE should resolve this disparity.
A large package over $500k is likely not the best idea since there doesn’t seem to be fierce competition to dominate the market from day-one. This is usually the case with newly-launched EVMs–and Gnosis has been around for some time. Hence, the liquidity incentives here are primarily for initially drawing liquidity away from Balancer and Gyroscope. This initial jolt of incentives ideally leads to sticky liquidity in v3 pools. Plus, the overall volume on Gnosis Chain is less than that of other target chains that attained $250k worth of incentives. In a single day, for example, Gnosis will direct ~$3M of volume, while Scroll $30M, and Linea will do $40M. Therefore, the addressable market from a volume perspective is also comparatively smaller than that of other chains. This does mean that the introduction of Uniswap will increase the trading appetite on Gnosis, thereby expanding the market on the basis of volume.