Uniswap Labs’ decision to launch Unichain, its Layer-2 (L2) network, without extensive consultation with the Uniswap DAO has sparked significant controversy within the DeFi community.

Critics argue that this move raises serious concerns about transparency, centralization, and the broader impact on Uniswap’s ecosystem.

Uniswap Labs and Uniswap Foundation Under Fire

The launch of Unichain has highlighted governance concerns for the Uniswap ecosystem. Community members and delegates expressed frustration over the lack of input from UNI token holders.

Notably, DeFi analyst Ignas pointed out that Uniswap Foundation recently approved a $165.5 million funding proposal to support Unichain’s development and incentivize liquidity migration. However, many believe this funding benefits Uniswap Labs and the Uniswap Foundation at the expense of UNI holders, who currently receive no revenue from the platform.

Reportedly, Uniswap Labs has generated an estimated $171 million in front-end fees over the past two years. Unlike competitors such as Aave (AAVE), which shares protocol revenues with token holders through a fee switch mechanism, Uniswap has centralized all earnings, further fueling discontent among UNI investors.

“In a shifting era where Aave proposes buying back $1M of AAVE per week and Maker $30/month buy-backs, UNI holders are a milking cow with now value accrual to the token…Aave and Maker have a more aligned relationship with token holders, and I don’t see why front-end fees couldn’t be shared with UNI holders.,” Ignas expressed.

Duo Nine, a crypto analyst, criticized this strategy, suggesting that Uniswap should use its funds to buy back UNI tokens rather than investing heavily in Unichain.

“They are better off buying UNI with that cash. Their flywheel won’t work if they don’t reward token holders. Creating an L2 seems like an unnecessary cost now,” the analyst remarked.

 In response to concerns about how the expansion would be funded, Ignas speculated that Uniswap would sell UNI tokens to cover the costs. However, such a move could lead to further dilution and dissatisfaction among holders.

Liquidity Fragmentation: A Major Concern

Another key issue surrounding Unichain’s launch is the risk of liquidity fragmentation. Uniswap DAO has allocated $21 million to attract Total Value Locked (TVL) to Unichain, aiming to grow it from $8.2 million to $750 million.

However, many worry that these incentives will primarily lure liquidity providers (LPs) away from Ethereum and other Layer-2 (L2) networks rather than attracting new capital.

Ignas warned that shifting liquidity to Unichain could weaken Uniswap’s market share on Ethereum, allowing competitors to gain ground.

“Incentivizing TVL on Unichain leads to LPs migrating from Ethereum and L2s, decreasing market share on ETH/L2s, and enabling competitors to emerge,” Ignas added.

This liquidity migration could lead to higher slippage and less favorable trading conditions across the broader DeFi ecosystem.

Despite concerns, the Uniswap Foundation remains committed to expanding Unichain’s adoption and incentivizing liquidity migration. BeInCrypto reported that the foundation intends to drive growth for Uniswap v4 and Unichain. However, skepticism remains over whether they will deliver long-term value to the protocol’s ecosystem.

However, since Unichain L2 launched on the mainnet on February 11, the Uniswap token price has been declining. As of this writing, UNI was trading for $7.52, up by a modest 2% since Thursday’s session opened.

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Key takeaways

• BTC is trading above $92k after adding 6% to its value in the last 24 hours.
• The Bitcoin Pepe presale is approaching $4 million as stage six nears completion.

Bitcoin surpasses $92k on tariff news

BTC, the number one cryptocurrency by market cap, was bullish on Wednesday, adding over 6% to its value and allowing it to cross the $92k level. At press time, the price of Bitcoin stands at $92,263 and could surge higher in the near term. 

Bitcoin’s rally can be attributed to tariff news as President Trump delays tariffs on auto parts from Mexico and Canada. The news eased investor worries and could push Bitcoin’s price higher in the coming hours and days. 

What is Bitcoin Pepe?

As Bitcoin’s price crosses the $90k level, altcoins are also performing excellently. New projects are not left out as investors continue to push funds into exciting projects in the crypto market.

Bitcoin Pepe is an exciting project that seeks to revolutionise the Bitcoin ecosystem. It is approaching a key level in its presale, with investors pushing millions of dollars into the project.

Bitcoin Pepe is seeking to leverage the liquidity and security of the Bitcoin blockchain. It will use Bitcoin’s position in the market to introduce memecoins to its ecosystem. 

The team revealed in its whitepaper that they are building a layer-2 network on the Bitcoin blockchain. Bitcoin Pepe will be a meme-specialized layer-2 solution built on top of Bitcoin, bringing Solana-style scalability to the Bitcoin network.

As a L2 network, Bitcoin Pepe will build a home for memecoin activities within the Bitcoin ecosystem. This will help it unlock decentralized finance (DeFi) and meme trading on top of BTC.

This project is also the first-ever meme initial coin offering (ICO) on the Bitcoin blockchain, making it the perfect fusion between BTC’s security and the unstoppable force of memecoins. 

The utility will enable Bitcoin Pepe to combine high levels of trust (BTC) with high levels of performance (SOL) to capture high levels of retail mass adoption.

Bitcoin Pepe presale nears $4m

The Bitcoin Pepe presale has been running for three weeks and has raised $3.9 million. It is approaching the $4 million mark and will soon enter its seventh stage, with 23 more stages to go.

The native token, $BPEP, is available to investors via the Bitcoin Pepe website. The token can be purchased using various cryptocurrencies, including ETH, USDT, USDC, BNB, and SOL. In this sixth presale stage, $BPEP is going for $0.0268 and is set to increase to $0.0281 in the next stage. 

Bitcoin Pepe’s utility makes this presale an excellent opportunity for investors as it could enable them to get in early on an exciting project. 

Will Bitcoin Pepe boost the Bitcoin ecosystem?

The Bitcoin Pepe project will unveil products and services that could improve the Bitcoin ecosystem. Introducing DeFi and memecoin trading on Bitcoin could enhance the network’s utility, enabling it to compete with smart contract blockchains like Ethereum and Solana in terms of utility. 

Bitcoin Pepe will enable developers to launch memecoins on the Bitcoin blockchain with ease. Memecoins will empower the Bitcoin blockchain to become home to a crazy high-octane meme experience. 

The Bitcoin Pepe project intends to unlock Bitcoin’s $2 trillion dormant market cap, making it available for memecoin trading. The layer-2 network will provide the necessary infrastructure for all memes to migrate to BTC, ensuring security and liquidity for investors and users. Bitcoin Pepe’s native $BPEP token will power several activities within the ecosystem. 

Should you buy the $BPEP token in its presale stage?

The Bitcoin Pepe presale is in its sixth stage, with the $BPEP token going for $0.0268 and increasing in the next stage. As the team develops its L2 network and other products, the presale could be an excellent opportunity to get in on the project, allowing investors to gain early exposure to the project.

Bitcoin Pepe will roll out memecoin trading to the Bitcoin ecosystem. This could increase the utility of the $BPEP token and could make it a top performer in the broader crypto market. The presale allows investors to purchase Bitcoin Pepe’s native token at a discount before it launches on centralised and decentralised exchanges.