Uniswap Allocates $300,000 To Develop V4 Front-End

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Decentralized exchange Uniswap has announced that it is allocating $300,000 for an engineering team to develop its V4 front-end for new pool launchers and liquidity providers. 

The grant from Uniswap will be valid for two years and may be extended based on performance. 

Uniswap Looking To Develop V4 Front-End 

Uniswap, in an announcement made on the 16th of January, stated it was looking for an engineering team focusing on user experience for a partnership to develop, run, and maintain a new front-end interface designed for new pool launchers and liquidity providers. 

“We are seeking an engineering team with a focus on user experience for a partnership to develop, run, and maintain a new front-end interface specifically designed for new pool launchers and liquidity providers. This project aims to create a user-friendly interface for Uniswap V4, supporting the establishment of initial pools for new tokens and the implementation of liquidity bootstrapping incentives.”

The announcement states that deploying Uniswap V4 would need to capture the market of long-tail assets and small capitalization tokens that are currently managed on Uniswap V2. Uniswap stated that even two years after Uniswap V3’s introduction, Uniswap V2 remained in use with $1.8 billion in total value locked (TVL). Data from Dune Analytics has revealed that 90% of new Uniswap pools are being created on V2. 

Uniswap attributed V2’s popularity to several factors, such as ease of providing liquidity. Liquidity providers perceive it easier to provide liquidity on V2 rather than V3. Some liquidity providers believe that V3 returns without rebalancing are lower. This is because more active liquidity providers compete with inactive liquidity. Additionally, deploying liquidity pools on V3 can potentially have higher gas costs. 

“We are keen to collaborate with teams that demonstrate a long-term interest in this project. We encourage applicants to share their vision for the future development of the interface, emphasizing ideas and strategies for long-term success and sustainability.” 

Further Details

Uniswap hopes to fund a user-friendly and efficient interface for V4 that can support the requirements of token launchers and liquidity providers. The solution will support Uniswap V2’s current use cases within V4 and lower the entry barrier for new token launchers and liquidity providers. 

The project will include developing, hosting, improving, and maintaining a specialized front-end designed for Uniswap V4. The grant is set for an initial duration of two years and could be extended depending on key performance indicators (KPIs). According to the KPIs, the grant recipients must 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.”

Additionally, Uniswap will consider a maximum upper variance of 25% upon request, with the project slated to commence on the 16th of February. 

Uniswap is one of the largest decentralized exchanges in the market, with over $4 billion in total value locked (TVL) and an annual revenue of around $940 million. In May 2021, Uniswap V3 surpassed Bitcoin in terms of daily fee generation, with its daily revenue crossing $4.5 million. The decentralized exchange unveiled its draft code for the V4 DEX in June 2023, introducing several new features, such as on-chain limit orders, automatic deposits to lending protocols, and auto-compounded liquidity provider fees.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.