[Temp Check] Unichain and Uniswap v4 Liquidity Incentives

Proposal to Fund Unichain and v4 Liquidity Incentive Programs Proposed by the Uniswap Foundation, with contributions from Gauntlet [Feb 19 note: this proposal is being made alongside another to fund UF Grants + Operations, here, and outlines a strategy addressing questions in the comments below about builder support, demand creation to sustain liquidity, etc.]

TL;DR The Uniswap community is entering 2025 with the momentum of three positive catalysts: a more collaborative regulatory environment, the launch of Uniswap v4, and the debut of Unichain. As we look to the months and years ahead, we see the potential for Uniswap Protocol and Unichain to cement themselves as foundational infrastructure for digital value transfer.

Achieving this vision will require more than just technological innovation; for the Protocol to become the world’s infrastructure for digital value transfer, we must take action. To that end, we propose funding liquidity campaigns, managed by our long-standing collaborators at Gauntlet, to kickstart sustainable growth for both Unichain and Uniswap v4.

Proposal: Fund two separate liquidity incentive programs to attract initial LPs, swappers, and developers to Uniswap v4 and Unichain. Through the use of Aera, Uniswap Governance would retain control of funds at all times, and be able to recall unused funds, if delegates made the call to do that. If the initial campaigns are successful, we would return to request subsequent funds, though we do not foresee campaigns lasting longer than a year. Rationale: Both v4 and Unichain rely on swift, substantial liquidity migration to attract an initial user base, which will be augmented and sustained through additional developer focused growth campaigns. The UF and Gauntlet have engaged in a multi-year engagement focused on developing and executing effective liquidity incentive campaigns, the result of which is the basis for this proposal. Success Criteria: For the v4 campaign, migration of TVL to v4 on Mainnet, Arbitrum, and Base For the Unichain campaign, achievement of TVL and swap volume metrics in pursuit of becoming a top 5 chain revenue chain by EOY Execution & Reporting: In collaboration between the Uniswap Foundation and Gauntlet, deploy incentives in 2-week tranches, with monthly reporting and a final campaign retrospective, while Uniswap Governance maintains the ability to claw back the remaining allocated funds (“control”).