Decentralized exchange (DEX) Uniswap is allocating $300,000 for an engineering team to develop its v4 front-end for new pool launchers and liquidity providers.
According to a Jan. 16 announcement, the deployment of Uniswap v4 would need to, in part, capture “the market of long tail assets and small capitalization tokens” currently managed on Uniswap v2. However, v2 is currently very popular with users, managing $1.8 billion in total value locked despite the introduction of Uniswap v3 more than two years ago.
“According to recent Dune Analytics data, over 90% of new Uniswap pools are still being created on V2,” developers wrote. Therefore, Uniswap staff are seeking to improve the user interface of the upcoming v4 exchange to attract capital.
The grant duration is set for a period of two years, with potential extensions based on key performance indicators (KPIs). As part of these KPIs, developers require that the grant recipient achieve “5% in 12 months of Uniswap’s total TVL through tokens initially launched through the new front end. Currently, around $150M represent 5% of Uniswap's total TVL.” A maximum upper variance of 25% to the original budget will be considered upon request. The project is set to start by Feb. 16.
Uniswap is currently one of the largest decentralized exchanges, with $4.43 billion in total value locked and an annualized protocol revenue of $940 million. In May 2021, shortly after being launched, Uniswap v3 surpassed Bitcoin (BTC) in terms of daily fee generation, with daily revenue surpassing $4.5 million at the time.
On June 13, 2023, Uniswap revealed its draft code for the v4 DEX, with new features such as on-chain limit orders, automatic deposits to lending protocols and auto-compounded liquidity provider (LP) fees.
Related: Uniswap launches Android wallet app with built-in swap function