To the DeFi Community,

What would this recap be without a reflection on the UNIversal Basic Income.

For those sleeping under a rock, Uniswap released its UNI governance token with a retroactive distribution to past users. Whether you were a trader, a liquidity provider, or a loyal $SOCKS holders, Thursday marked a sweet surprise with a free airdrop good for 15% of the total supply to value-added actors.

Now, while the common school of thought for airdrops is “this is going to dump”, we’ve actually seen quite the opposite. Given that the largest UNI recipients are mainly OGs and loyal Ethereum supporters in the form of long-term liquidity providers, the narrative has quickly changed to UNI being a scarce asset.

What’s more interesting here is the ongoing trend of rewarding value-added users for past contributions. Projects like Handshake and Curve are some of the first to come to mind with a version of this trend, and it’s one that I expect to see plenty more of in the coming months. In short, the best people to hold your token are your loyal followers. By making early adopters wealthy for supporting before incentives were in play, projects are creating superfans for the long run.

The community has a suite of interest takes around this topic, and it will be fascinating to see how it plays out in practice. But, what I’m really interested in is the evolution of Unsiwap governance itself. With UNI at play, centralized exchanges are no longer the most liquid vehicles for many of the top DeFi tokens. Just as we saw with the Curve governance war, I expect to see an influx of projects fighting to acquire UNI as a means of influencing proposals for future liquidity mining incentives.

In case it isn’t obvious yet, governance is valuable, and projects like Unsiwap are here to show exactly why. Despite the 0.05% protocol fee being timelocked for 180 days, many politicians are keeping a close eye on that countdown to take the hottest governance token into overdrive.

Until then, enjoy the free PS5 and remember, don’t send your UNI to the contract address.

– Cooper


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Top Stories

Uniswap Launches UNI Governance Token with Community Airdrop

The leading DeFi liquidity protocol surprisingly distributed UNI tokens along with a $2,500+ airdrop to users

DeFi Pulse collabs with TokenSets to release DeFi token Index 

The DeFi dashboard released a weighted DeFi token index leveraging Set Protocol for automated rebalances

Synthetix Launches Volume Rebate Program for Partners

The synthetic asset protocol is giving rebates to partner applications that drive volume to Synthetix

Teller Finance Announces October Launch + TLR Liquidity Mining

The unsecured lending protocol announced their October launch date along with Teller Liquidity Mining

Fair Launch Capital Showcases First Grant to Marqet Exchange

Fair Launch Capital announced its first Fair Launch Grant to trustless margin trading protocol for any synthetic asset

 


In Other News…


Stat Box

  • Total Value Locked: $9.1B (up +15% from last week)
  • DeFi Market Cap: $14.9 (down -8%)
  • DEX 7 Day volume: $5.47B (down -6%)
  • DAI supply: 651.9M (up 45%)
  • Total DeFi users: 457K (up +3%)

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Shoutout to Aave for supporting This Week in DeFi!

Aave is a leading lending protocol supporting dozens of the top DeFi tokens. Aave recently showcased an EMI license, giving them the ability to onboard new users directly into DeFi through their parent company – Aave Limited.

We’ve done an extensive amount of coverage on Aavenomics – a new suite of protocol upgrades that incentives protocol safety through AAVE rewards and protocol fees. The best part about Aavenomics is that all of its parameters – including the logistics of Aave yield farming – are governed by tokenholders. There’s a ton of good activity happening on the Aave governance forum and we’d definitely recommend checking it out if you fancy yourself to be an Aavenger.

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