[Temperature Check] - Activate Uniswap Protocol Governance

Governance-Meta
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TL;DR

  • The onchain vote to implement this proposal will go live next Friday, May 31. UNI token holders who would like to participate in this vote must delegate their tokens prior to that date.
  • This vote lays the groundwork for autonomous fee collection and distribution; additional votes will be required to turn on fees in Uniswap V3 pools.
  • We propose a novel mechanism for those future votes which makes fee adjustments more dynamic, reduces the burden on Uniswap Governance, and maintains the protocol’s credible neutrality.

Context
The contracts described in the original post have now undergone three audits and a week-long contest. Generally, there were no high severity issues discovered, very few medium-severity issues, and some minor and informational issues. The exact results of each can be found in the UniStaker repo here with the exception of the latest ABDK audit which will be posted shortly after the report is cleaned up. The codebase will be covered by a $1m bug bounty managed by Immunefi. That program will be live next week and this post will be updated with a link to the relevant information.

A successful Snapshot vote concluded on March 6, 2024 with 55m UNI voting in favor of proceeding with the proposal as described. As a reminder, if passed, this proposal would transfer ownership of the mainnet UniswapV3Factory to a newly deployed instance of V3FactoryOwner. This vote will not turn on fees; that will be accomplished in a future proposal. If fees are eventually enabled, they will flow autonomously to UNI holders who have staked and delegated their UNI in this deployment of the UniStaker contract using the payout race mechanism described here.

How to vote
If you hold UNI and want it to be eligible to vote on this proposal, you must delegate it (either to yourself, or to a third-party delegate) prior to Friday, May 31. To find a third-party delegate, check out the delegate profiles on either Agora or Tally.

To delegate to yourself on Agora, go to the same link, search for your address, and click delegate. To delegate to yourself on Tally, go to this link, connect your wallet, click “Delegate” and choose “Myself”.

One note, if you have used UNI as collateral elsewhere in DeFi (e.g. Compound or Aave), you will not be able to use that UNI to vote unless you close those positions. Post any questions you have in the comments below.

What happens next?
If this vote passes, we intend to propose another upgrade to Protocol Governance to further streamline the fee setting process. Today (whether or not this proposal passes), a full onchain vote requiring quorum would be required for fees to be turned on, and for every adjustment in the future. Over the past few months we have heard feedback from the community and worked with Scopelift to design a mechanism that would upgrade this process in order to:

  • Increase the efficiency with which the protocol charges fees by shortening the time and lessening the resources required to adjust them

  • Decrease the governance burden on delegates

  • Maintain the protocol’s credible neutrality

Assuming a successful result in this first onchain vote, we will post an RFC in the forum fully describing this mechanism and the steps required for its implementation.

Technical Notes
Unistaker has been deployed here with the following parameters:

`V3FactoryOwner has been deployed here with the following parameters:

The calldata comprising the proposal to transfer ownership will be generated using the scripts in the directory here.

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