Uniswap Fee Switch Projections
Description
The above projections illustrate the potential earnings for a single staked UNI token based on the new proposal, assuming the protocol's fee generation mirrors the past year's performance. These estimations are under the assumption that 50% of the tokens are staked and actively accruing fees. The varying projections correspond to different scenarios where the protocol captures varying percentages of the current liquidity provider fees.
Description
The graph displayed above illustrates the P/E (Price-to-Earnings) ratio for Uniswap, calculated based on the weekly fees collected and the market capitalization of the 600M circulating tokens. It reflects different scenarios of fee capture percentages by the protocol, providing a nuanced view of Uniswap's financial metrics under various conditions.
Introduction
A recent governance proposal on Uniswap has introduced a mechanism for UNI token holders to stake their tokens. Under this new proposal, the protocol will allocate a portion of the fees generated by liquidity providers to the stakers of UNI tokens. This allocation percentage is subject to vary across different pools and can be adjusted through governance decisions. This dashboard is designed to present the current fees collected by the protocol and offer projections for the staking rewards of UNI tokens.