Uniswap Labs, the firm behind the Ethereum-based decentralized swap Uniswap, has revealed the formation of a venture arm to engage in Web3 initiatives.
There is also no centralized party that makes deals on Uniswap. There are no core market operators or order books in use.
Rather, it makes use of autonomous liquidity. Liquidity suppliers lend their cryptocurrency tokens to form liquidity pools under the Uniswap framework.
Liquidity suppliers mainly provide liquidity. These suppliers add cryptocurrency tokens in combinations to smart contracts. Now, these tokens maybe even purchased and traded by others. Liquidity suppliers are mainly compensated with a share of the transaction fees.
A specific amount of tokens in the pair are withdrawn from the liquidity provider for each such trade. This has an impact on pricing. Because it does not demand a premium to list cryptocurrencies, Uniswap has grown in popularity. Traders may now readily access many Ethereum-based cryptocurrencies like Shiba Inu, Enjin, Decentraland, etc.
In a Twitter post, marketing lead Matteo Leibowitz announced that he and COO Mary-Catherine Lader will oversee “Uniswap Labs Ventures.”
Aave, Compound Protocol, and MakerDao are among the 11 crypto startups Uniswap formerly funded. According to the posts, the venture service's goal would extend “from architecture to advanced features to consumer-facing products.”
The pattern of crypto firms investing in Web3 organizations other than themselves resumes with Uniswap Lab Ventures. Circle Ventures Fund was founded in November by stablecoin provider Circle, whereas FTX Ventures was mainly announced in January by cryptocurrency exchanges FTX with a $2 billion fund.
The proportion of funds in Uniswap's venture firm was not disclosed in the series of posts.
Furthermore, it has come to our notice that apart from Uniswap, companies like Point Network are also working towards making a core impact on the crypto industry.