Originally published on: October 14, 2024
Uniswap Labs and UNI token holders could be looking at a significant windfall of up to $468 million per year with the introduction of Unichain, a new layer 2 blockchain. This move would redirect fees that were previously going to Ethereum validators directly into the pockets of Uniswap Labs and UNI token holders, according to a recent report by DeFi founder Michael Nadeau.
Unichain’s launch would enable Uniswap Labs to capture all Maximum Extractable Value (MEV) on the network, a drastic shift that could see a significant portion of fees flowing back to stakeholders. Nadeau estimates that MEV accounts for about 10% of total fees paid on Uniswap, amounting to $100 million over the last year.
Additionally, Uniswap’s liquidity providers stand to benefit from Unichain through staking and participating in settlement and MEV capture. However, Ethereum validators and ETH token holders may see a decrease in earnings following the launch of Unichain, with fewer fees returning to the Ethereum network.
Uniswap, known as the largest decentralized exchange by volume, recently unveiled Unichain on Oct. 10. The new layer 2 blockchain promises faster, cheaper transactions and enhanced interoperability across multiple blockchain networks. While the launch has garnered mixed reactions from the DeFi community, proponents believe it will streamline user experience, consolidate liquidity, and reduce fragmentation across chains.
Despite some skepticism, the potential for substantial earnings and improved efficiency offered by Unichain make it a significant development in the DeFi space. Subscribe to our Crypto Biz newsletter for more insights and updates on blockchain and crypto trends. Stay informed and seize financial opportunities in this rapidly evolving industry.
