Unichain Goes Live with More than $300M TVL! Is an Airdrop Coming?

In just one week, Unichain has transformed from a quiet contender to one of the most dominant players in the Layer 2 arena. This Uniswap’s L2 boasts a jaw-dropping $318 million in Total Value Locked (TVL). 

And now, with users piling in and whispers of a possible airdrop making rounds on social media, everyone’s asking the same question: What’s next for Unichain? Check this review!

Unichain’s Meteoric Rise

The sudden spike in Unichain’s popularity didn’t happen by accident. On April 15, the Uniswap DAO greenlit a major liquidity incentive campaign designed to turbocharge adoption and usage of Uniswap V4 on the Unichain network. 

This campaign, managed by risk optimization firm Gauntlet, is set to distribute around $21 million in UNI tokens over the span of three months.

In just the first phase, roughly $5 million worth of UNI is being poured into liquidity pools featuring high-profile tokens like BTC, ETH, USDT, and DAI. The result? A staggering 2569% increase in TVL in just one week, according to data from DeFiLlama. 

Unichain has now climbed the ranks to become the fifth-largest Layer 2 blockchain by TVL, as reported by L2Beat.

Read also: Uniswap v4 is Here! Uniswap Labs Expands DeFi with 10 Blockchains

Attractive Yields Are Fueling the Frenzy

Much of the buzz around Unichain is being driven by its eye-popping yield opportunities. DeFi users are always on the hunt for high returns, and right now, Unichain is delivering. 

Liquidity providers on the network are seeing some of the most attractive annual percentage rates (APRs) in the entire DeFi ecosystem.

For instance:

• The WBTC/USDT pool is currently offering an APR of 132%
• The ETH/USDT pool is close behind with 117% APR

These figures, sourced from on-chain analytics platform Merkl, are pulling in DeFi farmers and liquidity providers en masse, eager to capitalize on these rare returns.

But What About the UNI Token?

Interestingly, while Unichain is experiencing a massive upswing in activity, the same can’t be said for UNI, the native token of Uniswap. 

Despite being central to the incentive campaign, the UNI token has remained relatively flat over the past week. In fact, it’s down about 23% over the past month, according to CoinGecko.

This has left some investors scratching their heads, though others see it as a possible buying opportunity — especially if the surge in usage eventually translates to long-term value for UNI holders.

Read also: Uniswap's UNI Tokens Fully Unlocked: What’s Next for VC Investors?

Is an Airdrop on the Horizon?

Could Unichain be planning an airdrop? There's been no official confirmation from Uniswap Labs or the Uniswap DAO.

Whether or not an airdrop materializes, one thing is clear: engaging with Unichain early could pay off, either through current yields or future rewards.

FAQ

What is Unichain?

Unichain is Uniswap’s Layer 2 blockchain, designed to scale Uniswap’s ecosystem with faster, cheaper transactions and enhanced liquidity incentives.

Why is Unichain’s TVL growing so fast?

The growth is driven by a $21 million liquidity incentive program approved by the Uniswap DAO, rewarding users who provide liquidity to specific pools.

Is there an official Unichain airdrop?

As of now, there’s no official confirmation of an airdrop. However, strong community speculation suggests there might be one based on current user activity and precedent.

How do I participate in Unichain?

You can start by using a Uniswap-supported wallet, connecting to Unichain, and providing liquidity to eligible pools listed on the campaign.

What are the risks?

As with all DeFi protocols, risks include impermanent loss, smart contract bugs, market volatility, and changes in APR. Always research before committing funds.