Keyrock Delegate Platform

[0xkeyrock.eth]

Delegate Address: 0xkeyrock.eth (0x1855f41B8A86e701E33199DE7C25d3e3830698ba)
Forum: @0xkeyrock.eth
Twitter: @KeyrockTrading @soutos_eth
Discord: Thanasis | Keyrock#5443
Email: governance@keyrock.eu

0xkeyrock.eth | Linktree

Delegate statement

We aspire to enable the long-term adoption of Uniswap as the center of liquidity expansion across the multichain DeFi ecosystem.

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What do you want to see happen in Uniswap governance over the next year?

1. Multi-chain expansion: This benefits both Uniswap and the different chains by unlocking liquidity in their ecosystem. We’re firm believers in a multi-chain future and we believe that everyone will benefit from such expansions.
2. Concrete and sustainable fee switch solution: A long-discussed topic with many potential mechanisms and trade-offs around each solution. We believe it should be one of the main priorities to solve over the coming year.
3. UI/UX improvements: Adoption doesn’t happen without simplicity. We believe that being an LP is a complex operation in order to be profitable; there should be mechanisms in place so that less sophisticated users can visualise metrics such as Impermanent Loss and Fee Collection in Uniswap Dashboards. We’d like to challenge the DAO on considering such improvements.

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Reasons for wanting to be a delegate:

We believe in a future where the market share between CEXs and DEXs is evenly split. To enable this adoption, a proactive and flourishing DAO with delegates from all around the world sharing different perspectives or expertise is a must. As a crypto-native market maker and a power-user of Uniswap among other DEXs, we believe we can provide valuable insights to scale liquidity across Uniswap.

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Skills and areas of expertise:

Keyrock is a technology-driven digital asset market maker active on 85+ trading venues worldwide. With our proprietary algorithmic technologies, Keyrock provides scalable, adaptable liquidity solutions for marketplaces and asset issuers. Keyrock’s aim is to increase the liquidity of financial assets, to make markets accessible and more efficient for all participants. Keyrock was founded in 2017 in Brussels.

Our specialties in trading, DeFi innovation, liquidity management, and treasury management while being a delta-neutral entity can ensure that the Uniswap DAO will always have a power user providing fruitful feedback and ideas for protocol improvements.

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What are your views on 3 past Uniswap governance proposals?

Uniswap v3 Gnosis: We’re in full support of the expansion into the Gnosis Chain once Security risks & Bridges are evaluated as seen in the proposal.

Uniswap Deployments Accountability Committee: The creation of this committee will enhance efficiencies and we see a lot of value in having valuable members make Governance procedures more streamlined.

Create v3deployments.uniswap.eth subdomain and populate its text fields: The establishment of subdomains for v3 deployments is crucial and we’re massive believers in the transparency that ENS domains can provide. Full support of this proposal to avoid malicious deployments.

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Top Issues

Cross Chain deployments

Cross-chain deployments are a crucial step towards expansion of liquidity in DeFi while benefiting Uniswap stakeholders.

Fee switch

Fee switch is a complicated matter that we believe is very important to be solved and applied while benefiting all stakeholders in a compliant way. We look forward to finding a collective solution.

DAO working groups

We would like to discover the idea of creating “expertise Working groups” around multiple verticals and build upon the idea of the Accountability Commitee.

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Disclosure of Conflicts of Interest:

Keyrock is currently active in Governance for protocols such as Aave.

We will be expanding our Governance participation over protocols that we’re power users of and believe we can provide valuable feedback.

[0xkeyrock.eth]

22/05/23 - 28/05/23

{TEMP CHECK} - Uniswap V3 Deployment to Fantom

Reason: We were in support of this multi-chain expansion into Fantom that is supported by Axelar network. After we voted, the Multichain hack happened and so while we support the vote, we’d like to maintain cautiousness until the dust settles.

Voted YAE

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{TEMP CHECK} Deploy Uniswap v3 on Base

Reason: We are in support of deploying Uniswap V3 on Base.

Voted YAE

[0xkeyrock.eth]

29/05/23 - 04/06/23

{TEMP CHECK} Deploy Uniswap V3 on Linea

Reason: We support this deployment and see a lot of growth potential considering the Consensys ecosystem and potential awareness push.

Voted YAE

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{TEMP CHECK} Deploy Uniswap v3 on Base

Reason: We are in support of deploying Uniswap V3 on Base. Base is a promising L2 that most of the DeFi protocols will want to deploy for adoption & growth.

Voted YAE

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{TEMP CHECK} Making Protocol Fees Operational: Fee options for V3

Reason: We support a conservative approach of starting with 1/10 and testing up to 1/5 as we said on the discussion here. We believe that 1/5 could become aggressive but are open to test and observe the differences.

Voted 1/10

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{TEMP CHECK} Making Protocol Fees Operational: Initial deployment chain

Reason: The risks of deploying this on Polygon are low considering it represents less than 3% the V3 TVL.

Voted Polygon

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{TEMP CHECK} Making Protocol Fees Operational: Asset to be held in the treasury

Reason: We believe a healthy diversification of stablecoins and ETH will be a good approach. As we can only choose 1 asset with this vote, USDC is our vote.

Voted USDC

[0xkeyrock.eth]

12/06/23 - 18/06/23

[Temperature Check] Deploy Uniswap v3 on Filecoin Virtual Machine (FVM)

Reason: We support the expansion of Uniswap on FVM.

Voted YAE

[0xkeyrock.eth]

[Temperature Check] Deploy Uniswap V3 on Scroll

Reason: We’re supportive of a multi-chain future for Uniswap and thus Scroll is a great ecosystem to deploy.
Voted FOR

[Temperature Check] - Deploy Uniswap V2 on all chains with V3

Reason: Supportive of this deployment.
Voted FOR

[Temperature Check] Deploy Friendly Fork of Uniswap V3; ZERO Protocol on Polygon zkEVM

Reason: This is an interesting approach where the DAO could participate in meta-governance.
Voted FOR

[Temperature Check] Migrate the Celo Uniswap V3 Factory Contract owner from Optics to Wormhole

Reason: We’re supportive of this migration.
Voted FOR

Fund Combined Liquidity Incentivization Program

Reason: After long feedback during RFP process, it is great to see all the entities coming together with this joint proposal.
Voted FOR

[0xkeyrock.eth]

[Temp Check]: Complete initial funding of the UF

Reason: We support the completion of funding UF.

Voted Yes

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UADP Team Election

Reason: Abdullah Umar has been a great contributor to the Uniswap DAO and we feel that he will represent Uniswap accordingly within the Arbitrum DAO.

Voted Abdullah Umar - @Michigan Blockchain

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UAGP Team Election

Reason: For the UAGP, we believe that Nneoma from Stablelab has the experience through multiple incubator participations and Ignacio has been actively reviewing grants for a long time on Enzyme.

Voted Nneoma_Stablelab , Ignacio Rodriguez

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Temperature Check - [Issue a Visa Card with Uniswap Logo ]

Reason: This proposal is not something the DAO should be reviewing as we don’t think the trademarks and logo IPs are owned by the DAO.

Voted Against

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[Temperature Check]: Invest in Ekubo Protocol

Reason: We are against investing in Ekubo at the current format of the proposal. First of all, the DAO is not a VC. There could be a committee reviewing those type of proposals in the future but it’s not our place now.
Second, the valuation is unreasonable to say the least in a relatively speaking small ecosystem. As far as we know, Ekubo is not even audited yet at all.
Lastly, Ekubo is asking on top of the investment - 2.5M UNI to be delegated to them.

Voted No Change

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Create a UNI-ARB Grant Program (UAGP) and Protocol Delegate Program

Reason: We’re supportive of the UAGP and the Protocol delegate program as they can establish long-term benefits within the Arbritrum ecosystem for Uniswap.

Voted FOR

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Deploy Friendly Fork of Uniswap V3; ZERO Protocol on Polygon zkEVM

Reason: We support this friendly fork and are curious to see the effects it will have on Polygon zkEVM

Voted FOR

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Deploy Uniswap V3 on Filecoin Virtual Machine (FVM)

Reason: We support the deployment of Uni V3 on FVM.

Voted FOR

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Complete initial funding of the Uniswap Foundation

Reason: We support the funding of UF.

Voted FOR

[0xkeyrock.eth]

[Temperature Check] Lower Onchain Proposal Threshold

Reason: We’re supportive of lowering the threshold as it enables more qualified yet well trusted delegates to have the ability of creating onchain proposals.

Voted Yes

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Lower Onchain Proposal Threshold

Reason: Reasoning explained on Temp Check.

Voted Yes

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[Temperature Check] Deploy Uniswap v3 on Rootstock (Bitcoin Sidechain)

Reason: Rootstock is an interesting deployment as it is a Bitcoin Sidechain and at the same time meets criteria such as liquidity bootstrapping from their team. Will be good to see those innovative side chains succeed with Uniswap V3 deployments.

Voted Yes

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Deploy Uniswap V3 on Rootstock

Reason: Reasoning explained on Temp check

Voted Yes

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Uniswap Deployments Accountability Committee Competition

Reason: We believe that the people we voted on for the Committee have showcased knowledge and competence of being able to carry that role.

Voted Juanbug, Doo_StableLab, Abdullah, 0xpibblez

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Regarding our reasoning on the Uni onboarding packages, we will share our general approach instead of an individualistic reason for every chain. We believe that allocating a bigger budget on the chains that Uniswap has the chance to capture mindshare while considering the ecosystem competition & environment is the most logical approach.

[Temp] Uni Onboarding Package - Scroll

Voted $250k

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[Temp] Uni Onboarding Package - Polygon zkEVM

Voted $250k

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[Temp] Uni Onboarding Package - zkSync

Voted $500k

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[Temp] Uni Onboarding Package - Blast

Voted $500k

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[Temp] Uni Onboarding Package - Linea

Voted $250k

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[Temp] Uni Onboarding Package - Base

Voted $500k

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[Temp] Uni Onboarding Package - Taiko

Voted $250k

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[Temp] Uni Onboarding Package - Moonbeam

Voted $250k

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[Temp] Uni Onboarding Package - Mantle

Voted $250k

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[Temp] Uni Onboarding Package - BSC

Voted $1m

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[Temp Check] Deploy Uniswap v3 on Zora

Reason: Zora is a quite unique approach on why Uniswap would be needed and we’re happy to see such use cases pop-up.

Voted Yes

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Deploy Uniswap V2 on all chains with V3

Reason: We’re supportive of these deployments.

Voted For

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Deploy Uniswap V3 on Zora

Reason: Reasoning explained in Temp Check

Voted For

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Uniswap Revitalization and Growth Proposal

Reason: We voted Against this proposal as we thought it was posted prematurely while community members of the DAO had declared that some time was needed to chat with the teams of each chain. Apparently that did happen faster and was not communicated on the forum. If we knew that there was an outcome from those conversations, we would vote For this proposal.

Voted Against

[0xkeyrock.eth]

Activate Uniswap Protocol Governance (06/03/2024)

Voted: Yes, upgrade the factory owner

Reasoning: Uniswap governance requires improvements to incentivise active participation and voting. While various proposals have been implemented (e.g governance calls, treasury delegations), participation is still very low (Figure 1).

UNI token holders lack incentives to vote and delegate their tokens. Small actors feel their delegations are insignificant and must be financially incentivised to delegate. Lack of incentives could explain low participation, highlighted by voting turnout comparisons with protocols such as DYDX which directly incentivize delegation through rewards.

Below are estimations of how the fee switch proposal may translate into APY to Uniswap holders. Using a conservative estimate of a 10% fee implementation, we believe the incentives would translate to 40-50% amount of UNI being staked to capture this value. This would drastically improve the participation in Uniswap governance.

Additionally, Gauntlets report has highlighted the inelasticity of core volume to a protocol fee switch activation (2% decrease with 10% protocol fee), instilling confidence that this decision has little risks for protocol volume and TVL. We believe this is an effective approach and with the future of Uniswap being governed by its DAO, it makes sense for voters to be the beneficiaries of a portion of the protocol fees.

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Uniswap V3 Fees: Factory Owner Amendment

Vote: Reject amendment

Reasoning: We believe an immutable system should be a priority to ensure the safety and to align with the core values of Uniswap. Under the current proposal, governance has the ability to determine fee amount (1/10, 1/8, etc) and decide fee amounts for pools, which we feel is enough flexibility.

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Mobilizing the Uniswap Treasury

Temperature Check: Launch Working Group

On-Chain Vote : For

Reasoning: Following the fee switch proposal which redirects fees to delegated UNI holders, the Uniswap Treasury lacks a value accrual mechanism. Additionally, Uniswaps´ large treasury ($5.5b) is completely in native $UNI tokens, raising concerns about the stability of the DAO.

The need for the DAOs stability has been highlighted by recent price action. The treasury allocation of $UNI leads to significant volatility (3.13% daily SD). In the last year the treasury saw a maximum drawdown of -52% with a maximum high of 65%. We believe this is far to volatile for a treasury with the goal of ensuring a healthy runway and sustaining operations… Below are comparisons of the current treasury 1 year returns vs a simulated diversified treasury of 50% UNI, 25% USDC, and 25% ETH.

The absence of stables and majors in the portfolio means Uniswap is funded via native tokens. Uniswap is constantly required to auction and fund expenses with $UNI, even during periods of market instability. In the worst case this could mean needing to auction off UNI at heavily discounted prices in the case of a black swan. Diversifying the treasury means Uniswap can strategically sell UNI during favourable market conditions to build a buffer.

Additionally, compared to other similar protocols, Uniswap is the least diversified and has the least runway. Lido has 34.7% of their treasury in stETH, MKR has 20% in stable coins, and Aave holds 33% in tokens such as rETH an gHO. As mentioned in the original proposal, these can be used as case studies and reference points for successful utilization of Uniswaps Assets.

Therefore, we agree with the view that the current Uniswap treasury should be discounted heavily and treated as the crypto equivalent of unissued shares. We believe the working group can start an initiative to create a resilient treasury to maximize long term shareholder value and ensures sustainability even during volatile market periods. We look forward to seeing this progress.

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[Temp Check] Onboard Uniswap to Sei

Vote: Incentivise $500k

Reasoning: We support the proposal to launch Uniswap V3 on Sei v2 Mainnet.

We believe the Sei v2 upgrade allowing EVM compatibility will be a catalyst for large TVL inflows to the chain, for which Uniswap should be aggressively positioned.

• The Sei ecosystem has seen significant growth, in 2024 the TVL on chain has increased from 9.8m Sei to 58m Sei.

• Currently Astroport is the only DEX with significant liquidity on Sei. Due to low APRs and high volatility, most of the LPs provide liquidity for stable pairs rather than exposing themselves to the impermanent loss of volatile pairs. This provides an opportunity for Uniswaps’ volatile pools.

  
  

• Based on the Incentives provided by Sei, the Uniswap pools will generate attractive APR even without including fee rewards. For example, the proposed incentive APR for the SEI/USDC pair would outperform the current combined APR (Incentive + Fees) of 8-12% for the current highest TVL SEI-USDC pool. We would expect migration of liquidity from low APR to high APR pools.

  

• A swap from SEI to USDC with a notional value of $10,000 incurs slippage of 83bps. This leads to the majority of swaps on Sei being low value, and prevents trading with larger size. Uniswaps V3 and Sei incentives will draw liquidity for these pairs, and allow for more efficient trading.

  
  
  Source: Flipside Crypto

• Uniswap has seen significant adoption and marketshare on chains where it was a first mover e.g Arbitrum, compared to when it launched on chains with already established DEXes e.g Avalanche. For this reason we suggest being aggressive.

Additionally, we recommend allocating $500k UNI as ecosystem incentives:

1. This will ensure LP Incentives are high enough even if pools attract large TVL. We expect lots of protocols will compete for market share with incentives - this extra amount helps Uniswap to remain competitive.

2. We believe this partnership is beneficial for both parties, therefore it makes sense for Uniswap to match a portion of Seis’ contributions.

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[0xkeyrock.eth]

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Update Uni v3/v2 Deployment Process

• Snapshot Vote : Update Process
• On Chain Vote : For

The proposal streamlines the process of deploying Uniswap allowing it to efficiently launch on new EVM chains. With the emergence of Layer 2s and popularity of Layer 1 EVM chains, liquidity is becoming increasingly fragmented. These trends require Uniswap to become flexible in deploying across a large number of chains.

For these reasons deploying Uniswap cross chain has become a standard procedure, and the quicker the process the more advantage we have being first movers and gain market share.

Additionally, it is important that the DAO retains power over deciding incentive distributions. While deploying Uniswap on a chain is often a trivial and straightforward decision, the strategy and amount of incentives requires further discussion specific to the chain.

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Onboarding Package Bundle

• OnChain Vote: For

This proposal bundles the incentive packages for Sei, Manta, Taiko and MoonBeam into a single OnChain vote. We voted FOR as the incentives align with what we supported in the Temperature Check. We believe these four chains have potential and Uniswap will benefit from increased TVL and dominance due to the incentive programs. Combining the proposals into one bundle reduces the workload required for the delegates and governance members.

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Topic: Defi Education Fund

• Temperature Check: Against
• On Chain Vote: Abstain
• Alternative Options Temp Check : For - 300k

This request is for a substantially large amount of $UNI tokens.

• Uniswap v3 UNI/ETH 0.03% Pool has 4.5k ETH in total buy-side liquidity ($13m).
• 2% depth of $200k-$300k on Tier 1 exchanges like Binance and Coinbase.
• DEF has already received 1m UNI tokens in 2021 from the Uniswap DAO.
• The requested amount is much larger than most UNI proposals.

Our sentiment reflects that of others — Our belief is that Uniswap’s large contribution has been unjustified given the lack of responses on the forum. Going forward, more accountability and transparency is required.

We would like to highlight that:

• DEF has yearly expenses of around $2 million. They have a runway of around 2 years.
• DEF has made commitments to provide monthly updates via calls and governance forum.
• 1m UNI is around $7m; this amount gives DEF around 3.2 additional years of runway.

While we do see the benefit in funding the DEF and believe their work is valuable, we see no reason that an upfront commitment is required from the DAO — especially for such a large amount. A yearly contribution would be more appropriate, giving the DAO flexibility to pivot on their contributions based on the updates provided by DEF.

We voted against this proposal and instead voted for a 300k UNI contribution in the amended proposal by Stablelab.

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Uniswap Delegate Rewards

• Temperature Check: FOR
• On Chain Vote: FOR

Governance is a core process that ensures the decentralization and strategic vision of Uniswap. Delegates are a crucial part of this process. Without the 10 million delegation program, proposals would struggle to reach quorum; even now, with most delegates having 100% voting turnout, overall participation is around 6%, while 4% is needed to reach quorum.

Delegates perform hard work and require significant effort to conduct the necessary due diligence to vote and participate in discussions. It makes sense to provide incentives for these actions since as delegates are not incentivized by the value of their UNI tokens.

Finding the ideal incentive program to fairly incentive delegates is an iterative process. Delegate rewards have been long discussed, and this is the first real implementation on Uniswap - small improvements and adjustments can be made after using these 3 months as a trial period.

We believe that this proposal will help increase governance participation and improve the quality of discussions on the forum. We have applied here.

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[Temp Check] Onboard Uniswap to Redstone

Redstone has only 526 ETH TVL on their Layer 2.

Due to the Extremely low TVL, we are not convinced that this deployment will be beneficial for Uniswap yet. Despite this, Redstone has already financed a front end meaning deploying without incentives has no additional costs for the DAO.

We will vote for this proposal with no incentives. However, we recognise the ecosystem is still in its early stages and incentives may be justified in the future.

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[Temp Check] Uniswap Onboarding Package - Manta

The Manta ecosystem is in its early stages. Manta prioritises DEFI through incentives such as native yield, DEFI airdrops, and Manta airdrops for ecosystem applications - giving Manta Potential to become a DEFI Hub.

Despite its high TVL of $520m, Manta lacks sufficient DEX liquidity. Only 4% of the TVL is in DEXes, while 96% is in lending platforms. Additionally, a large pair of liquidity lies in stable pair of STONE/WETH. As seen in simulations, swaps on chain incur significant slippage.

Based on the above, launching and incentivising Uniswap on Manta is beneficial for both parties:

• Uniswap: Expand market share, Cross chain dominance, increased user base.
• Manta: Increased total value locked, bluechip DEX on Manta.

Due to this we support a joint campaign with $MANTA and $UNI rewards.

• Manta is currently running their Renew Paradigm Program which aims to accelerate yield by incentivising $Manta, $Stone, and $WUSDM pools. $3m MANTA tokens are allocated for this initiative to a total of 11 protocols. This program rewards protocols that allocate their native token as rewards. This overlaps Uniswaps current proposal.
• Quickswap also has a joint partnership with MANTA where they received : 85k MANTA in LP rewards, 50k to future MANTA LPs, 50K to future $MANTA, $STONE, $wUSDM LPs. The total amounts too $500k + at current prices. We believe there is potential in collaborating with MANTA to incentivise LPs from their side.

We vote Yes to this proposal

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[0xkeyrock.eth]

Snapshot - Uniswap Arbitrum LTIPP Matching

We initially voted for the following incentive package preferences: $250k, $500k, $750k, and $1M.

Our vote was based on wanting to maintain Uniswap’s strong symbiotic partnership with Arbitrum, and we felt partially matching the incentives was necessary to show our alignment and commitment to Arbitrum. However, we voted for the lower range of incentives as we remain skeptical about the effectiveness of the suggested incentives.

This is based on our interpretation of Gauntlet’s Retro-Report and Gauntlet’s Dashboard:

• $782k was spent on incentives to generate $597k in extra fees for incentivized liquidity pairs.

• Excluding the success of the Magic/ETH Pool, the average USD cost for $1 gain in fees is $3.9.
• This means that from the additional rewards, 80% comes from incentives, with only 20% coming from trading fees. This wouldn’t achieve the outcome of increasing fees to create a flywheel effect.
• As the majority of revenue comes from ARB incentives rather than fees, once the incentive programs end, new LPs tend remove their liquidity. An example from the DAI-USDC Pool:

Onchain - Uniswap Arbitrum LTIPP Matching

For the on-chain vote, we voted for the $750k option. While not agreeing with the size of the incentives, we strongly believe matching the incentives in some capacity is important for Uniswaps partnership with Arbitrum. We look forward to seeing this incentive program play out.

[0xkeyrock.eth]

Uniswap Onboarding Package - Gnosis Chain

Snapshot Vote: $250k Incentive Package

Reasoning: Gnosis currently has a Total Value Locked of $107 million across its DEX landscape. The top three DEXes are Balancer with a TVL of $91 million, Curve with $8 million, and Gyroscope Protocol with $5.4 million.

Figure 1: Breakdown of Gnosis Chain Total Value Locked

As illustrated in Figure 1, Balancer has extremely high DEX dominance on Gnosis. Balancer offers both stable and weighted pools - employing the veBAL gauge model to direct incentives to user-voted pools. This strategy leads to a weekly expenditure of $27,710 distributed among LPs as BAL rewards.

Figure 2: Balancer incentive spend on Gnosis

While these incentives represent a large amount of LP earnings, LPs also earn from swap fees and yield reward. When weighted by TVL, 16% of rewards come from swap fees, 39% from BAL incentives, and 43% from Native Yield APR (e.g wstETH). This results in a projected $474,000 in swap fees collected by LPs. While earnings are skewed to incentive rewards, swap fees and yield do provide sustainable revenue.

Figure 3 highlights the earning breakdown of LPs, and indicates the importance of incentives to attract liquidity. Overall, only 10% of Balancers liquidity is in non BAL incentivised pools.

Figure 3: Balancer Pair Reward breakdowns

Both Curve and Gyroscope both focus on providing liquidity for stable pairs such as EURe / EURC.e or weETH / wstETH, rather than competing for volatile pool TVL. Furthermore, while Gryroscope is a CLMM, it is built on Balancer; and veBAL holders determine the pool incentives and swap fees.

Figure 4: Aggregated Liquidity

Therefore, based on the aggregated liquidity in Figure 4, it is evident that Gnosis chain lacks a CLMM in its current DEX ecosystem. Only 9% of DEX TVL is concentrated, and only in a stable ETH pool. This lack of concentrated liquidity provides a huge opportunity for Uniswap V3 to gain a sizeable marketshare on Gnosis - and we are highly supportive of a deployment. Since Uniswap doesn’t need to compete directly with the current competitors, we advocate for an incentive package of $250,000. This should be enough to attract long term liquidity while still being mindful of expenditure.