Uniswap dropped a bomb on all of us last week, releasing their own governance token, UNI! With 60% of UNI tokens to be distributed to the “community,” they did a remarkable retroactive distribution of 15% of UNI (150,000,000 UNI) to be be claimed by historical liquidity providers, users (swappers), and SOCKS redeemers/holders based on a snapshot ending September 1, 2020, at 12:00 am UTC.
- 4.92% pro-rata to all 49,192 historical LPs 49,166,400 UNI: 49 million UNI are claimable by historical liquidity providers. The formula accounts for LP liquidity on a per-second basis since the deployment of Uniswap v1, ensuring rewards are weighted towards LPs that provided liquidity when total liquidity was low.
- 10.06% split evenly across all 251,534 historical user addresses 100,613,600 UNI: 400 UNI are claimable by any wallet address that has ever called the Uniswap v1 or v2 contracts (aka traded or tried to trade on Uniswap). This includes ~12,000 addresses that have only ever submitted failed transactions.
- 0.02% to 220 SOCKS holders/redeemers 220,000 UNI: 1000 UNI are claimable by each address that has either redeemed SOCKS tokens for physical socks or owned at least one SOCKS token at the snapshot date.
How to claim UNI if you ever traded on Uniswap or provided liquidity
For those who have traded on Uniswap or even attempted with a failed transaction, this is the best news ever. Not only did Uniswap award LPs proportionally and 400 UNI per wallet address of traders across Uniswap v1 or v2, but for many of us who have traded with different addresses, it entitles you to multiple claims of 400 UNI.
Recently, I made a 6-minute tutorial on how to claim 400 UNI per wallet address used to trade on Uniswap prior to September 1st. Here’s a quick rundown of how to claim UNI:
- Go to Uniswap
- Click the Claim UNI button in the 3-dot menu on the far right (if you miss the pop-up message)
- You’ll be prompted to confirm 1 transaction
- Done!
How to earn UNI as an LP (Liquidity Provider) in Uniswap
From September 18 2020 12:00 am UTC until November 17 2020 12:00 am UTC (60 days total) the LPs in the following 4 Uniswap pools will be rewarded with 5,000,000 UNI per pool to LPs proportional to liquidity, which translates to: 83,333.33 UNI per pool per day.
One thing to take note of here is the deep liquidity in each pool. With us 5 days into this liquidity mining program, there’s 55 days of 60 left to distribute 5,000,000 UNI per pool, meaning ~4.583M per pool.
If one assumes the pool liquidity remains constant (which it won’t), you can forecast how much of the $4.583M UNI per pool you might capture. An example would be if I provided $10,000 of liquidity in the ETH-DAI pool today, that’s $10,000 / $291M, so I own 0.003% of the pool and will earn 0.003% of the $4.583M UNI in that pool, or 157.5 UNI. If one assumes UNI can maintain a price of $4 today, it would be $630 earned over 55 days, or 6.3% Return on Liquidity (RoL).
One would be wise to run through these numbers before jumping into a UNI-earning pool in Uniswap. That being said, if the forecasted returns make sense, here’s how to become an LP in any of the 4 pools above earning UNI in Uniswap for the next 55 days.
1 – Go to zapper.fi/invest
2 – Search “ETH” and the top 4 pools below are earning UNI (with a little tractor icon)
3 – Click Add…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
