The cost to purchase one UniSwap (UNI) token surged by almost 24 percent in just two days of trading.
UNI/USD reached a five-day high at $4.010 during the early morning session Friday. The upside move appeared after the UniSwap community put forward a governance proposal that would extend their UNI reward program for liquidity providers. The program expired on November 17, coinciding with the UNI/USD’s drop to a weekly low of $3.23 this Thursday.
The UniSwap Backdrop
In retrospect, UniSwap operates as an automated market maker that arranges liquidity from users to run its decentralized exchange. In return, it pays them yields in the form of UNI. Beneficiaries can opt to sell the native token in the open market for other assets and/or use their UNI ownerships to vote for making changes in the UniSwap protocol.
UniSwap Total Value Locked shows signs of a rebound. Source: DeFi Pulse UniSwap Total Value Locked shows signs of a rebound. Source: DeFi