Help & FAQs / Uniswap Mining

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Will I receive my principal back after the period?

Uniswap incentivizes users to add liquidity to pools by rewarding providers with fees on trades. Market making, in general, is a complex activity that has the risk of losing money (compared to just hodling) in the case of big directional moves of the underlying asset price.


In the Uniswap Mining on CoinList, users that participate will be rewarded with accumulated fees on trades as well as the UNI token. 


To understand the risks associated with providing liquidity you can read this blog to get an in-depth look at how to conceptualize a liquidity position.


In sum, participating users are not guaranteed their principal amount back but are guaranteed their pro-rata share of the liquidity pool, accumulated exchange fees, and UNI tokens. 


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