Last November the Uniswap protocol incentivized liquidity in the following V2 pools:
We now have some data on how that may have driven liquidity to the protocol and how much of that liquidity proved to be sticky.
V3 of Uniswap has been out for over a month now and is steadily gaining traction.
Rather than incentivize liquidity to move to V3, I think it makes more sense to TURN THE FEE SWITCH ON IN THE FORMERLY INCENTIVIZED POOLS ON V2.
This will give us data on how turning the fee switches on may affect the liquidity that is already in the protocol.
I suspect most of the liquidity will stay in these pools despite the fees but we won’t know until we turn on the switch.
Also, turning on the switch will turn the UNI token into a productive asset, one that generates fees for token holders.
I think that is a net positive for the protocol.
What do you all think?