Uniswap Labs is reportedly raising over $100 million in new funding

• The largest decentralized crypto exchange is reportedly partnering with a Singaporean sovereign wealth fund and Polychain
• Uniswap currently has a 47.2% market share

Uniswap Labs, the de facto backbone of the Uniswap protocol, is reportedly preparing to raise a $100-$200 million venture capital round.

Uniswap interface creator Hayden Adams is working with a Singapore sovereign wealth fund as well as crypto-focused investment firm Polychain, TechCrunch reported.

Following the fundraising, Uniswap Labs is said to be valued at $1 billion, although the final valuation could change pending negotiations once the fundraising progresses through later stages.

Uniswap Labs previously raised an $11 million Series A round led by Andreessen Horowitz, which also includes investors from Paradigm Venture Capital, Union Square Ventures and ParaFi.

Recent moves to seek funding likely point to plans to further expand the offering.

The DeFi protocol is one of the largest decentralized crypto exchanges and currently has a 47.2% market share, according to data from Blockworks.

For the past few months, the Uniswap community has been considering revenue generation strategies with the goal of sustaining the long-term growth of the protocol.

A proposal to switch fees received overwhelming support from Uniswap’s community governance in early July, but few steps have been taken since then.

The fee switch provided a pilot opportunity to test fee parameters in select liquidity pools, including 0.05% of DAI-ETH, 0.3% of ETH-USDT and 1% of USDC-ETH – this percentage would be subject to a 10% fee selected pools, the lowest percentage allowed by the code.

And any resulting value would remain in the log before governance decides where to allocate them.

Uniswap Labs’ decision to fundraise now could also be a mechanism to potentially mitigate the pilot’s risks.
A Uniswap community member with the pseudonymous title BJP3333 wrote earlier this year that “Fees are being taken away from LPs [liquidity providers] should be the last resort.”

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• Bessie Liu

  blocks

  reporter

  Bessie is a New York-based crypto reporter who previously worked as a tech journalist for The Org. She received her Masters in Journalism from New York University after working as a management consultant for over two years. Bessie is originally from Melbourne, Australia. You can contact Bessie at [email protected]

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