Enables Uniswap V3 LPs To Earn Up To 100x the Fees Earned On Uniswap V3
MakerDAO, the creator of Dai, the world’s first decentralized stablecoin based on the Ethereum blockchain, has announced the integration of Gelato Network’s G-UNI Uniswap V3 token as collateral within its protocol. The addition of the G-UNI token, an automated liquidity provision ERC-20 framework for Uniswap v3, will allow holders to use their wrapped Uniswap v3 positions to mint DAI, leverage liquidity positions and allow developers to use Uniswap v3 liquidity positions as collateral in DeFi projects like MakerDAO.
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MakerDAO’s adoption of the G-UNI framework is a substantial development for DeFi, as the Uniswap USDC / DAI pair will effectively become the most liquid across all decentralized exchanges (DEXs). The integration of G-UNI enables liquidity providers within Uniswap v3 to earn up to 100x their fees earned on Uniswap v3 by leveraging their initial liquidity position on Uniswap v3’s USDC / DAI pool without having to acquire any extra capital up front. Gelato bots constantly monitor all G-UNI pools and reinvest fees.
Hilmar Orth, Co-Founder and Legendary Member of Gelato Network added, “MakerDAO is a pioneer in this space, and integrating the G-UNI token within the protocol is a monumental achievement for Gelato, and will greatly benefit the larger DeFi sector. The USDC / DAI G-UNI pool is only the first step, as we plan to explore integrations with more potential pools in the near future.”
Centralized cryptocurrency, USDC, makes up 54% of MakerDAO’s collateral. If seized or frozen, the MakerDAO protocol could effectively be bankrupt. The addition of G-UNI as collateral has the potential to shift parts of this USDC collateral that MakerDAO holds to be utilized in G-UNI pools instead, significantly reducing the potential for frozen assets.
Sam MacPherson, MakerDAO Core Developer, commented, “there are many projects building ERC-20 tokenizations of Uniswap V3 positions, but G-UNI is the most straight-forward implementation I have found so far.”
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“Incredibly cool integration,” added Uniswap Founder, Hayden Adams. “MakerDAO is using a custom Uniswap v3 USDC/DAI position (ft. Gelato Network) to replace the PSM (peg stability module) and earn LP fees, which will be used to buy and burn MKR! Money legos in action.”
The G-UNI/MakerDAO integration will benefit key parties, including:
- MKR Holders: Potential higher revenue for MKR holders
- MakerDAO: G-UNI as collateral has the potential to shift parts of this USDC collateral that MakerDAO holds to be utilized in G-UNI pools instead, to prevent the freezing of assets
- Uniswap Liquidity Providers: Liquidity providers on Uniswap v3 can earn up to 100x their fees earned on LP positions
- Gelato Network Community: Significant increase in G-UNI liquidity pool and reduced slippage for larger USDC/DAI trades
Over the coming months, Gelato Network plans to unveil significant integrations and partnerships, as well as upgraded functionality and use cases in line with the product roadmap.
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