End of Uniswap farming could release $1 billion in ETH

In just four days, the first Uniswap yield farming will come to an end and the community will meet to discuss what will happen

Uniswap’s initial yield farming opportunity will come to an end on 17 November. In recent days, DeFi enthusiasts and industry analysts have raised concerns about what will happen then. The decentralized protocol has executed four different liquidity pools in the past seven weeks.

The pools are gaining 583,333 UNI weekly. Although the injection of guarantees of more than $2.4 billion has led Uniswap to be the largest decentralized exchange in terms of TVL (total blocked value), its future is at stake. As these incentives are about to end, there is much uncertainty among the holders.

Holders fear that there may be an imminent symbolic price drop in the short term if users move to withdraw liquidity and sell the previously mined UNI. In the long run, the cut in the new UNI may favour prices.

Another concern is the future of $1.1 billion ETH in pools.

„On November 17, the $UNI farming will end. At the moment, approximately $2.3 billion of funds are being employed in UNI’s farming, with $ETH being the token of reference. This means that there is currently about $1.1 billion ETH locked away, about to be launched. Where do you think the ETH will go?“ posted Darryl Wang of DeFiance Capital.

Wang believes that the $1.1 billion ETH will come out of Uniswap Crypto Profit staking pools. The former investment banker argued that Uniswap farming capital will be moved in search of higher income incentives. Wang, now an investment analyst, suggested that the liquidity affected will be about $500 million in ETH and $500 million in WBTC and stablecoins.

It is important to note that Ether rose 7% when UNI agriculture was launched. Therefore, there is a chance that the opposite will happen when it is finished.

„Commercial farmers have loaded ETH to capitalize on UNI’s rewards and when they are finished, those farmers will probably unlock their ETH“.

Uniswap conducted a call to the community to discuss their concerns among users. However, nothing concrete was achieved when the call was closed without a clear path to follow. No proposal was made to extend farming or launch new pools. Therefore, it is advisable to tighten your belt, as there may be a lot of volatility in the sector next week.

The community call was hosted by Monet Supply. Notable participants were Uniswap strategy chief Matteo Liebowitz, crypto podcaster Matt Aaron and 0xMaki from SushiSwap.