The Uniswap Foundation has submitted a funding request for $62.37 million which will be needed to strengthen the development and growth of the Uniswap ecosystem, cementing its role as a prominent player in the decentralized finance (DeFi) sector.
Uniswap is a decentralized cryptocurrency exchange that is built on the Ethereum blockchain. It is a leading decentralized exchange that enables peer-to-peer market-making, allowing users to trade cryptocurrencies without any involvement with a centralized third party.
It uses a set of smart contracts (liquidity pools) to execute trades on its exchange, which facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain.
Uniswap Foundation is a non-profit organization that supports the development and growth of the Uniswap Protocol, which is a decentralized exchange for swapping cryptocurrency tokens on Ethereum and other popular blockchains.
The foundation’s role includes overseeing the Uniswap treasury, which is utilized to finance protocol development and foster the growth of the wider Uniswap ecosystem.
The dual purpose of the fund
The requested funds will have a dual purpose. Firstly, they will support the foundation’s day-to-day operations, ensuring the continued growth and stability of the Uniswap platform.
Secondly, a significant portion of the funding will be allocated to bolstering the Uniswap ecosystem. This includes providing support for developers and offering research grants, fostering innovation within the DeFi space.
As of the application date of September 27, 2023, the foundation boasts an impressive track record. It has amassed over 180 million user accounts and facilitated more than 6 billion transactions. Moreover, the total value locked (TVL) in the Uniswap ecosystem has reached an impressive $15.41 billion.
The foundation notes that the Uniswap governance had previously approved $74 million in funding for the Uniswap Foundation. It added that the decision was made to divide this funding request into two streams, as the second, $62.37 million, is being requested via an on-chain vote.
The goal of the on-chain process is to make funding in the DeFi ecosystem easier and faster to implement.