What is Uni2 currency (Is Uni currency valuable?)

08/12/2023 15:10 • Blockchain Buzz • 103 views

What is Uni2 currency (Is Uni currency valuable?)

What is Uni2 currency? What is Uni2 currency going to work like?

Uniswap is a decentralized exchange liquidity provider market on Ethereum. The protocol automatically deducts transaction fees from exchanges without any intermediaries. Through this, users can directly purchase Uniswap’s token UNI on the Ethereum network. Uni2 is similar to Uniswap but designed to address the high transaction fees and gas costs that Uniswap cannot achieve. However, due to the low price of UNI and high gas prices, UNI2 currently does not have value.

However, UNI2 also has its own mechanism. Uniswap does not issue new UNI or any other form of tokens like ETH, but uses these tokens to pay for platform maintenance fees and rewards. If necessary, the system also distributes airdrops to token holders who support new projects in proportion.

In addition, according to official introduction, Uni2 is a governance token controlled by the community and can be generated through voting. The total supply of UNI2 tokens is 1 billion, with 5% locked in smart contracts and 10% used for ecosystem development. (BlockBeats)

Is Uni currency valuable?

Editor’s note: This article is from Xiaozha Talk (ID: xiaonazha88), authorized for republication by Odaily.

Uni is the leader in the cryptocurrency market.

Under the name Uni, many people have begun to ask me why I don’t pay attention to its development direction. Is it because it’s too popular and thought of as a scam? But in fact, UNI has no value since its token launch until now. What is UNI?

Uniswap is a decentralized exchange that provides services such as trading pairs with USD and exchanging cryptocurrencies. It also has smart contract functionality. Currently, there are 5 tokens available for trading on Uniswap, including USDT (a stablecoin), DAI (supported by DeFi protocols), and WBTC (a collateralized asset). The total locked-in value on Uniswap is about 1 billion USD.

All of this is thanks to the smart contract on Ethereum, with the main issuance mechanism being “liquidity mining” for UNI. This means that by depositing all ERC20 tokens on the Ethereum chain into UniSwap, you can earn profits or unfreeze these tokens at any time.

Of course, there are many other applications under development, such as lending and trading platforms, which can also join the Uni pool to earn profits. Can Uniswap’s UNI token really take off? Does UNI have any value?

If we calculate based on the current market value, should UNI’s price be over 100 RMB? Will UNI become the hottest topic in the DeFi field in the future?

Let’s first look at the fundamentals of UNI:

First, UniSwap.

Currently, the circulating supply of UNI is only 10 million tokens. According to UniSwap’s official website data, the circulating market value of the project has reached about 40 billion USD, nearly a hundredfold increase compared to before.

The second point to note is the total amount of ETH locked in UniSwap. As of the time of writing, the circulation of ETH has reached 315,000, a nearly 40% increase from January 2. In addition, Uniswap’s daily fee income has also reached over 1.5 million USD.

So, how high can UNI rise? Everyone needs to know for themselves.

The third point worth observing is the voting weight of UNI’s community governance.

In the UniSwap governance process, users participate in proposals through their own share ratios. When a proposal is adopted, a portion of the participants will receive rewards or be allowed to enter the system’s vote.

Furthermore, due to the current existence of some inflation rate issues in UniSwap, skeptics believe that the price of UNI should not be overestimated like UNI.

The fourth important question is whether this project itself can achieve real-world applications.

The last point to note is that…

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What is Uni2 currency (Is Uni currency valuable?)

Is Uni currency valuable?

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