- Uniswap DAO invests $12 million worth of UNI to acquire a 20% stake in Ekubo’s future governance token
- The investment aims to fund Ekubo’s future operations, in addition to contributing to the development of the Uniswap protocol
- Despite a majority vote in favor, the decision has sparked controversies surrounding the token’s valuation and governance
The Details of an Unexpected Collaboration
Uniswap DAO recently voted in favor of a $12 million investment in UNI (3 million UNI) into Ekubo, a decentralized exchange platform (DEX). This strategic decision gives Uniswap DAO a 20% stake in Ekubo’s future governance token.
“Uniswap DAO becomes a significant player in the Ekubo protocol, and vice versa“.
Moody Salem declares
The vote was widely supported, with 63% of UNI tokens in favor of the proposal, out of a total of 3,500 votes. Moody Salem, the founder of Ekubo and former lead engineer at Uniswap, stated that this step was crucial for the “decentralization of Uniswap’s development.”
An Investment Dedicated to Financing Ekubo’s Future
The 3 million UNI investment will be used to fund Ekubo’s operations and development as well as contribute to the Uniswap protocol. Ekubo, which operates on Starknet, already has $2.5 million of Total Value Locked (TVL) in its smart contracts.
Note that the investment also aims to develop public goods for the Starknet ecosystem, including “standard contracts for tokens, governance, and incentives.”
An Investment Criticized by Some Crypto Actors
Although the proposal was adopted in a decentralized manner, it has not been without controversy. Questions have been raised about the $60 million valuation of the token and the lack of a framework or committee for in-depth due diligence. Some market players, such as Wintermute, have even refused to support the proposal.