Uniswap $300K budget for V4 development with $150M token KPI
Decentralized exchange Uniswap is allocating $300,000 to an engineering team to develop the V4 front-end for new pool initiators and liquidity providers.
According to the January 16 announcement, the deployment of Uniswap V4 will require, in part, capturing the “long-tail assets and small capitalization tokens market” currently managed on Uniswap V2. However, V2 is currently the most popular among users, with a total value of $1.8 billion locked in even though Uniswap V3 was introduced two years ago.
“[A]”According to the latest Dune Analytics data, more than 90% of new Uniswap pools are still being created on V2,” the developers wrote. Therefore, Uniswap employees are looking to improve the user interface of the upcoming V4 exchange to attract capital.
The duration of the grant is fixed for two years which can be extended based on key performance indicators (KPIs). As part of these KPIs, developers require the grantee to “achieve 5% of Uniswap's total TVL within 12 months of the initial launch of the new front end. Currently, around $150M represents 5% of Uniswap's total TVL.” A maximum of 25% budget variance will be considered upon request. The project will start on February 16.
Uniswap is currently one of the largest decentralized exchanges with a total value of $4.43 billion locked in and an annual protocol revenue of $940 million. In May 2021, shortly after its launch, Uniswap v3 surpassed Bitcoin (BTC) in generating daily payouts, with daily earnings exceeding $4.5 million at the time.
On June 13, 2023, Uniswap unveiled the V4 DEX draft code with new features such as on-chain limit orders, automatic deposit-to-loan protocols, and auto-coordinated Liquidity Provider (LP) payments.
Related: Uniswap launches Android wallet app with built-in swap functionality
