Its been a while since the last update. So we’d just like to keep you updated with some of the recent developments.
Sorry for the silence, we have been looking into numerous options lately.
Its been a crazy two weeks since we last spoke for DeFi. Lots of food tokens, lots of hype, lots of crashing in prices.
It’s been interesting watching the markets, seeing what consumers/investors want, and seeing how well these yield farming tokens live up to expectations when a market correction occurs.
On the one hand you have Andre Cronje creating amazing DeFi solutions and inspiring ethereum developers to push the boundaries of what can be done with ethereum, on the other you have SUSHI and the likes and all the drama that has followed when you have a high yielding token with no backing value.
This is one of the problems with high staking and high yielding (or yield farming tokens) who have no intrinsic value other than voting. You can see how on the one hand it is beneficial to liquidity to offer yield farming but on the other, when someone wishes to cash out they not only dump more tokens than they had, they also remove liquidity thinning the books before dumping their tokens creating more extreme downside pressure.
As you know we have a browser update coming that allows you to track down new tokens on uniswap somewhat more efficiently. Although with the rise in anonymous devs, even tokens with half a billion mcap are questionable. The truth is investing especially with anonymous devs will always be risky until the project is at least one year old. As you know our liquidity locker while useful to good projects can still be circumvented by dumping unlocked tokens on the pool. There is no easy solution to weed out scams in this industry and it most definitely cannot be automated, and even people like cz binance can get a research team to look into a token and get it wrong some times.
This has prompted us to while developing the browser look into other areas of interest the crypto community has of late.
Notably, investors want some form of staking and yield farming, other tokens want it too, (for example sushi allowed other pairs such as ETH-YAM or ETH-CRV) to greatly increase their liquidity pools which some would argue is very beneficial to those markets.
So there is an opportunity here. UNC holders have long been asking for staking. And we have long been wanting to give it to them. But yield farming is an entirely different animal. Yield farming allows your staking to have an effect on other pools aswell, for example you can offer staking rewards to UNC-SWAP pairs or UNC-LGCY pairs etc. This is quite nice as we have always tried to build products that benefit other tokens as well as our holders.
We are considering what if we were to swap UNC to a new token that allows minting, currently our circulating supply is around 130mil UNC with varying amounts in the lockers that can be withdrawn and still 70% of our total supply is locked for just under a year. This total supply doesn’t look nice at all to investors with such a small percentage circulating. We propose a swap to a new UNC token, lets call it UNC2, where the team has 10% and the then there is the circulating supply. No more crazy 1 billion tokens. and 13% circulating supply.
What if a trusted team was to offer LOW YIELD (high inflation is a f**king joke lets be honest) yield farming for uniswap pairs. We are thinking around 15%-45% APY. Low and sustainable like some of the best projects in the industry. No more food coins with untrusted developers, no more high APY, no more 1 week crazy farming resulting in a 100 mil mcap screwing over all HOLDERS or anyone not farming. Is this a better approach than the old and well-known staking?
Absolutely. One the one hand it allows staking like yields, on the other it allows holders to benefit from increased liquidity in the markets and allows us to offer small yields to other pairs and other tokens that would perhaps lead to people buying UNC on the UNC-ETH pair to buy for example SOMETOKEN on a SOMETOKEN-UNC high liquidity pool with less slippage than on the SOMETOKEN-ETH pool. (As you may have seen SUSHI pairs currently have more liquidity and less slippage than most of the ETH pairs).
This allows us to continue working with other tokens and reward UNC liquidity providers across multiple pools with a REASONABLE APY.
We have spent the last 2 weeks looking into many different defi products, other chains such as STAKE (to lower gas fees) and weighing up the pros and cons of each. The cons during this crash are very evident with a bunch of untrusted anon developers and food coins doing unbelievably nasty things to investors. What happens if for once someone tried to do it right with better economics?
We are interested in what you guys have to think about this direction (which doesn’t change any of our other products btw).
To sum it up, Should UNC offer yield farming with LOW APY (somewhere around 15–45% Per Annum) ONLY on UNC pairings (potentially making UNC a major trading pair with less slippage across multiple pairs).
We would love to hear from you guys (this is something we can set up while still working on the browser and our other suite of products) and to be honest, there are some unique use cases here that actually trump our planned ILO DAPP. We can see the market making a shift away from ILO’s straight into a form of yield farming launch, and we plan to be a part of it.
One of the attractions of Yield farming is it prevents rug pulls as the devs don’t set up the liquidity pools, the community does, and in return they receive some reward for their liquidity via yield farming. This definitely looks like the way new tokens will be launched in the future to prevent rug pulls.
Anyway, thoughts on this would be greatly appreciated, what have you noticed lately in yield farming and on uniswap that you think can be done better or by a more trusted anonymous party?
To the FUDDERS, don’t bother commenting. We are still here, unlike some of the tokens you probably invested in after leaving UNC.
Our plan forward is to co-ordinate this plan with the community (APY parameters, initial pairings, etc) if the community is resoundingly for this idea we will be able to implement it very easily with all necessary changes. Let’s brainstorm this together. Parameters, other options etc.