Uniswap farming ends this week, potentially freeing up $1.1B ETH

The world's largest decentralized exchange, Uniswap, has just conducted its first community call primarily to discuss which direction to take when UNI farming concludes on November 17.

The call ended with no clear direction from Uniswap, and no proposals submitted for extending UNI farming or launching new pools, so next week may well bring a lot of volatility to the space.

Uniswap has been running four ETH-based liquidity pools since September 17 that have been earning 583,333 UNI per week, per pool.

The fear among UNI holders is that token prices may dump in the short term if users withdraw liquidity and sell off previously mined UNI when incentives dry up.

UNI prices have made a slight comeback over the past week, topping $3. There is also the concern that up to $1.1 billion dollars' worth of ETH could be withdrawn from these four pools and either sold, or reinvested into higher earning incentives.

ETH rallied when UNI farming began, so the opposite could occur when it ends.1/ On 17th Nov, $UNI farming will end.

Right now ~$2.3bn funds are deployed farming UNI, with $ETH being the reference token.

"Any decisions regarding liquidity mining has to be made by community members rather than the Uniswap team."

"If you look at DEX statistics, Uniswap is leading on unique number of traders and I am willing to bet that that has absolutely nothing to do with the liquidity mining program,".

He didn't see any threat from other protocols trying to subsidize their system to get ahead. Realizing that there were going to be no definitive answers on the liquidity farming issue, the discussion moved on to the faster Ethereum layer 2 Uniswap v3 and integrations but again, Liebowitz was giving nothing away when questioned, maintaining that he was just an observer.