31 Jul 2023

Why we decided to exclude the UNI token from the KVQ Index

The Uniswap protocol generates significant trading fees, but will the UNI token ever capture its (fair) share? We believe not.
Uniswap cover picture SVG
UNI, the Uniswap DEX protocol token, is mainly a governance token. The current business model of Uniswap is a 0.3% fee on trades, where all fees currently go to liquidity providers. Both these parameters can be changed by governance votes to pay dividends to UNI holders. The supply is also fixed, and a majority vote would be needed to issue more UNI, much like shareholder voting in a company.
Uniswap key statistics SVG
Key statistics for the Uniswap protocol. July 31, 2023. Source: K33 Research
In a slow DeFi market, the fully diluted value of the UNI token is 15 times the annualized
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