“We are watching the community build this,” he said. Hayden Adams, founder of Uniswap, at Consensus 2021. The firm expects the liquidity extraction to get underway soon, according to Brady Dale at Coindesk.
Uniswap is a decentralized cryptocurrency exchange that facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.
“I think it will be very soon,” Hayden Adams said in a prerecorded interview broadcast Thursday to wrap up Consensus 2021. “One thing we’ve seen in the last few weeks is basically a grant from the Uniswap grant program, which comes from governance, that was … issued to someone who is working on liquidity extraction smart contracts. And we are seeing how the community is building this. “
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The liquidity mining is a type of yield crop in which users of a crop product decentralized finance (DeFi) they get an additional token on top of the regularly expected return just for put assets in a liquidity poolHence the term “liquidity mining”.
When the money market compound announced a liquidity extraction program for its governance token, COMP, last year, it kicked off the boomlet known as DeFi Summer 2020.
Towards the end of that period, Uniswap launched or distributed its governance token, UNI, to eligible stakeholders and then ran a very short liquidity withdrawal program in some key liquidity pools.