UNI vote delegation is tied directly to your UNI account balance. Depositing UNI into an LP reduces your UNI balance in exchange for LP tokens, so you cannot delegate votes that you’ve deposited into a liquidity pool.
Should it? Not really, no. UNI is a governance token. Its utility is intrinsic and shouldn’t be derived from having it deposited into a pool. Expectations from the community are entirely skewed by the wave of scamforks that pump “governance” tokens with unsustainable buyback loops, among many other things. That playground should be left for people who want to build on top of UNI, but it shouldn’t happen on the protocol level.
Besides, you can’t change it now, because UNI is an immutable smart contract.
I’m worried about incentivizing UNI mining in UNI pools because I feel like this is a short-term solution that would hinder the overall DeFi ecosystem by taking liquidity from other pools.
This would (in my newbie opinion) cause a self-contained bubble “à la Food token.” This isn’t something I believe we want to happen in order to preserve the long-term success of the protocol.
I’m not actually sure though, I might be completely off the mark!
Zer0dot
This is arguably not a problem. Plenty of liquidity for anyone who wants to buy or sell tokens except for maybe the largest whales and VC firms, and I don’t think we need to optimize for their needs.
They can already do this by supplying their UNI and ETH to the Uniswap v2 pool, it’s just not incentivized. I think that a proposal like this is ultimately self defeating for UNI holders - while they may be able to get more tokens in the short run, the Uniswap ecosystem will be less focused on building and serving new users, and will end up being less valuable.
I don’t see any reason to incentivize providing liquidity to UNI/ETH pair.
There are pros and cons to using UNI-Stable/ETH pools for minting more UNI. The pros are more liq for the Uniswap and more tokens in the hands of real users rather than in cex or other defi pools.
However the downside of that strategy is obvious. We will incentify people to focus on farming more uni and inflate the market, rather than focusing on building and innovation in defi sector. I want for the uni to go up in price because Uniswap brings a lot of value to the defi space rather because of inflatory degen strategies.
These pools could work well however, if we utilise time-locks on withdraw-deposit. Imho.
I wouldn’t call it a donation - users provide liquidity to the UNI/ETH pool for the same reasons that users provided liquidity to uniswap v1 and v2 for the past 2 years! They expect the money they earn from trading fees to be greater than the impermanent losses they suffer from price movement. Users are happily providing millions of $ in liquidity with no incentives, throwing money at them without needing to is a waste.
Also, while UNI/ETH liquidity is nice for token holders, it brings basically 0 value to regular platform users and traders. The currently incentivized pools (DAI/ETH, USDC/ETH, USDT/ETH, and WBTC/ETH) increase overall platform liquidity as bridge assets. Eg. if a trader wants to use uniswap while consolidating profits to BTC or stablecoins, the availability of a deep WBTC/ETH or USDC/ETH pool will help them access all of uniswap’s other liquidity with less slippage. Liquidity for UNI token is basically a bridge to nowhere, as it only helps those buying or selling UNI and not the platform more generally.
It seems like 1% of the supply is a large threshold for proposals, over 1.2 million UNI would have to be delegated to or owned by you for that to work. How close are you to that milestone?
@Bryan hey so I’m going to come off super duper brand new right now, but I’m legit just learning about all this stuff on my own as i go, and a lot of it doesn’t stick for the most part. I’m sure the same happens with others learning on their own but actually understand it unlike myself. What I am trying to get at is that I have yet to gain any UNI at all whatsoever. I have purchased some off of coinbase about a week ago or less. And I decided to take it upon myself to make attempts at gaining some UNI by joining the pools n whatnot but as I said I had no clue what I was doing. But I will say at one point, I did end up somehow having a deposit of ETH for a small amount end up in my wallet and though I was doing something right. I was doing that exact pair ETH ↔️UNI just assuming that was the way to do this. Fast forward a couple hours, my coinbase wallet had no more of both those coins, and on top of it I thought I would be able to import what I have combined as a pair upto that point, but nope, those were nowhere to be found either. SMH…my point is, does it sound like I should just kind of give in and maybe attack (not maliciously) cryptocurrency from a different angle such as maybe the aspect of margin trading or something. The problems is that my OCD just won’t let go of the fact that I’m struggling to understand the basics and especially considering the amount of research I do I feel I should get it much better, and so since I feel I don’t as of now, it eats me up and makes me really want to just understand it even more and to the fullest capacity one can understand. I’d even be satisfied with a small knowledge base and not necessarily have to go that far which probably would be impossible for me anyhow. Sucks because I just want to comprehend it on a level of confidence. Do I sound crazy rn?! lmao I’d love to hear some feedback and by anyone. Thank you in advance!
