Proposal for A Sustainable and Progressive Uniswap Yield Algorithm and Protocol

A sustainable and progressive UNI Price based yield algorithm and protocol should be created to reduce distribution of UNI Rewards going forward and possibly create an incentive to buy and hold UNI for the long-term, by distributing monthly rewards to every UNI holder, proportionate to individual UNI holdings using Every other Token (except UNI) that is being traded with reasonable liquidity on Uniswap. A continuously yielding staked pool of 10 % of fees collected as different tokens should be set aside for this. The Longer a person holds UNI the Higher the relative proportion (UNI Amount Held|Time Period of Holding) of rewards that can be claimed. Live tracking of potential month end rewards that can be claimed, based on the above logic should be searchable and displayed on Uniswap.info. This will attract inward fund flow from BTC, ETH and other Altcoins and motivate long-term fund managers from the world of stocks, commodities, hedge funds and forex to seriously consider making UNI an essential part of their diversified portfolio, thus paving the way for making UNI the first and only Trillion Dollar DeFi Token ever.

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Love the idea myself Whilst I’m holding the kind air drop of tokens I received from Uniswap and also managed to add some liquidity to earn a few more, as a beginner I would like nothing more than to be able to contribute more funds to help strengthen the Uniswap token price which only seems to be going down at present. Large sellers of tokens should be discouraged in some way not sure how.

Emission should be based only on profit made by the exchange. Till such time liquidity mining, which results in emission of UNI that is disproportionate to profits generated by the exchange, comes to an end in November, the potential for the price of UNI falling further is quite high. More than 80% of those beneficiaries who received the initial Airdrop have not sold till now. The number of people selling from this group, who are tempted to sell now as the prices fall, mainly due to the fear of further price drop is bound to increase putting further downward pressure on UNI prices. The smart and big holders too may sell now and buy later at lower prices, thereby increasing their overall stake and holding percentage of UNI. For UNI price stability and growth on a sustainable basis, this is what I have proposed in my detailed post under Governance Meta titled:

UNI Price Stability and Future Price Growth Mechanism

A mechanism should be put in place to enforce UNI’s price stability and strong growth, which should be based on the inherent financial strength of our Uniswap project going forward. UNI should be available only for sale and should never be distributed again without being backed by underlying cash reserve and proportional liquidity, based on profits earned by the project. We should stop emission of UNI immediately after the current liquidity based mining on the 4 different pools comes to an end in November. Governance tokens are equivalent to shares held by shareholders of any profit making project. The 1 Billion Max supply of UNI is like authorized capital and the current supply is like issued capital . Any UNI Rewards going forward should be bonuses to UNI holders based only on the profits and cash reserves held by the Uniswap Project after being voted for and approved by the community members. This will make sure the price will be stable at the Nov 2020 levels and keep increasing as we go forward. In order to increase user base and attract further investments on a continuous basis we need to distribute rewards to all UNI holders using other tokens traded on Uniswap and never use UNI for this again . This reward should be a function of individual UNI holdings and the Time Period for Which UNI is being held. The Longer a person holds UNI the Higher the relative proportion (UNI Amount Held x Time Period of Holding UNI) of rewards that can be claimed. The “Time Period of Holding UNI” variable should have higher weight-age in the function than the “UNI Amount Held” variable, in order to discourage whales and speculators to buy UNI for the short-term only to claim monthly rewards. A continuously yielding staked pool of 10 % of fees collected as Different Tokens should be set aside for this. Any unclaimed rewards in other tokens should be sold on a monthly basis and be used to create liquidity for UNI and for buy back of UNI. Live tracking of potential monthly rewards that can be claimed, based on the above mechanism should be searchable and displayed on Uniswap.info. As the financial reserve of Uniswap keeps increasing based on volumes and the fees generated, it will keep increasing the net worth of the project and hence keep pushing the price of UNI on an upward trajectory.

Future revenue generating operations should be introduced with active discussion and participation by community members. For example the daily volume of Deribit Futures and Options exchange with just BTC and ETH as the underlying assets, is approximately 250 million USD. The profit earned by Deribit with this volume on a daily basis is more than half a million dollars. The core business and strength of Uniswap is earning profits by providing liquidity based exchange services. Hence getting into the business of providing Futures and Options trading on Uniswap platform will be a natural evolution for the Uniswap project. If Uniswap can get into leveraged Futures and Options trading and introduce the top 20 Coins/Tokens or may be make this facility available for every token that is listed on Uniswap, that has sufficient liquidity, the potential volume of trading per day is an additional Billion Dollars and a potential profit of 3 million dollars per day. Today centralized exchanges decide on their own as to which projects can be listed in the futures and options section. Being a truly decentralized project, if Uniswap offers this to every project that can bring in liquidity without any bias, this will attract several new and old projects who wish to have their Tokens on the Futures and Options market, to Uniswap. This will result in more daily volumes, profit, cash reserves and increase in net worth of Uniswap, which will result in constant upward pressure on the price of UNI. The future looks bright for our Uniswap project and the prospects of UNI becoming a true, Blue Chip security, with regular returns and long-term wealth creation for investors and long-term holders, is an absolute given with unquestioned certainty, if these mechanisms are put in place.

Good idea, so more people are willing to hold UNI

Daily Crypto Futures Volumes are soaring to record levels. The combined daily volumes of Futures trading of Cryptos is more than 10 Billion Dollars. Getting into Futures trading is a tremendous opportunity for Uniswap which we need to get into without any further delay. Binance recently announced that they had more than a Trillion Dollars in Futures trading volume during the last trading year. If we take 0.3% as the Fees, Uniswap can potentially earn an additional 3 Billion Dollars per year if we can tap the Futures Market. There is no time to be wasted. Every project wants to be on the Futures Market. If we can introduce this on Uniswap, the revenue will shoot through the roof and UNI can hit a price target of 10 to 15 dollars which it truly deserves, and stay there before moving higher. If we can make this Futures Trading launch to coincide with the End of the current liquidity mining program which will come in November, it will be an added boost to the UNI Price. Some platforms like Unitrade, Dharma, etc., are offering through their interface, the option to set Target Prices and Stop Loss while trading on Uniswap. We should not wait for other projects to come up with such innovations. We should lead from the front as far as these innovations are concerned.