Uniswap (Arbitrum)

UNI

UNI is the governance token of the Uniswap protocol.

Risk Rating
Good
$5.00
0.08%
Summary
What we like
UNI has intrinsic value as the native governance token used to direct the future outlook of the protocol. UNI holders can vote to turn on the fee switch for specific pools.
What we like less
UNI transferred through the Arbitrum bridge requires more trust assumptions as the bridge depends on a centralized sequencer who can control the ordering of transactions. UNI currently does not accrue any actual value from the protocol itself as all trading fees are directed back to liquidity providers (LPs).
What it means for you
Allows you to gain exposure to the largest decentralized exchange with potential to accrue value from a future proposal to turn on protocol fee switch.
Information
Blockchain
  • Arbitrum
Info
Key Metrics
  • Market Cap: $3.8B
  • Fully Diluted Valluation: $5B
  • FDV / MC: 1.3
  • Ranking inside Exponential (excluding stables): #8
  • Circulating Supply: 753,766,667
  • Total Supply: 1,000,000,000
  • Total Supply: 1,000,000,000
  • Volume (24H): $29.5M
  • ATH: $44.92 (05/03/2021)
  • ATL: $1.03 (09/17/2020)
Risk Assessment
Good
Asset Strength

UNI is a mid-cap asset that represents the protocol's native governance or utility token. This asset is exposed to the underlying risks of Uniswap and Arbitrum bridge, which are protocols rated as Best in Class and Moderately Risky, respectively. UNI is the governance token of the Uniswap protocol, and its sole utility is voting rights over the protocol decisions. The asset has an uncapped supply.

Asset Volatility

UNI is highly correlated to the overall market.

Dependencies

Uniswap V3


Arbitrum Bridge

Things to know about UNI

What is UNI used for?

UNI is the governance token for the Uniswap protocol. The primary use for UNI is to govern the future direction of the decentralized exchange. In the future, token holders may vote to turn on a protocol fee switch for certain pools to redistribute a portion of swap fees back to UNI. Other uses for the the UNI token includes managing the UNI community treasury, determine the tokens that belong on the Uniswap default list, and ownership of the Uniswap ENS domain name.

UNI tokenomics

The total supply of UNI is initially capped at 1B tokens. These tokens will become available over the course of four years, after which Uniswap will become inflationary via introduction of a 2% perpetual inflation rate to maintain network participation. The token supply distribution consists of 60% reserved for the community, 21.5% to the team, 17.8% to investors and 0.7% to advisors.

How does UNI accrue value?

The ongoing success and adoption of Uniswap products is expected to accrue value to token holders through positive price impacts. If the protocol fee switch is turned on, this will further benefit UNI holders as a portion of trading fees are redistributed back to token holders.