Etherlink, an EVM-compatible Layer 2 blockchain secured by Tezos Smart Rollup technology, proposes a co-incentive program to bootstrap liquidity on Uniswap v3. The Tezos Foundation commits $300K to incentivize strategic pools and requests a $150K co-incentive from the Uniswap DAO. This initiative will drive long-term liquidity, support ecosystem growth, and position Uniswap as the default AMM for uncorrelated asset pairs on Etherlink.
Etherlink is an EVM-compatible, non-custodial Layer 2 blockchain powered by Tezos Smart Rollup technology. It enables seamless integration with existing Ethereum tools, including wallets and indexers, and facilitates asset transfers to and from other EVM-compatible chains.
Built upon the secure foundation of Tezos Layer 1, Etherlink delivers a fast, fair, and (nearly) free experience. Developed by the same core teams behind Tezos and fully supported by the Tezos Foundation, Etherlink offers a permissionless and censorship-resistant environment that empowers developers to actively build and participate in the next generation of decentralized applications.
Officially launched in early 2025, Etherlink has seen strong TVL growth - rising from approximately $1.5 million to ~$45 million within a few months - driven primarily by the Apple Farm incentive program. With the launch of Season 2 and the onboarding of new protocols, we expect this growth to continue, targeting a minimum of $100 million in TVL by the end of the year.
Etherlink is developing its ecosystem by onboarding new categories of assets such as Physical Uranium; Treasury bills and DeFi strategies tokenized by Midas; licensed on-chain money market funds; and is looking to onboard new permissionless RWA tokens.
The goal is to establish Uniswap as the primary AMM for uncorrelated asset pairs on Etherlink. All future Tezos Foundation–supported project tokens - particularly in Gaming and Art - will deploy their primary liquidity pools on Uniswap. The Foundation is currently in the process of investing in several strategic projects within the Etherlink ecosystem, which will result in new tokens launching in the coming months. These tokens will be paired on Uniswap from day one, further cementing its role as the default venue for liquidity.
Apple Farm is an incentive program - powered by Merkl - designed to bootstrap DeFi on Etherlink by rewarding users who provide liquidity on DEXs, supply capital on lending markets, and trade on selected DeFi protocols. In season one, the participating protocols are Superlend, Hanji, Uniswap, IguanaDEX, & Uranium.io.
As the first AMM deployed on Etherlink (a PancakeSwap v3 fork), IguanaDEX saw significant growth in both trading volume and TVL, largely driven by incentives from Apple Farm.
Since Thursday, June 19th and through July 3rd, incentives are already being distributed to initial Uniswap v3 pools as part of Apple Farm Season 1. A total of $37,500 in rewards (not included in this proposal) will be allocated during this period, marking the beginning of Uniswap’s long-term role in Etherlink’s DeFi stack. The Etherlink team is coordinating with the Uniswap Growth Program on this proposal and will transparently share the terms and outcomes of the Season 1 distribution with the DAO.
In Season 2 - running approximately from July 15th to October 25th - at least $300K in incentives will be allocated to core blue-chip pairs, especially WETH/USDC, WBTC/USDC, and LBTC/USDC.
Uniswap will become the primary liquidity venue for all uncorrelated and ecosystem-native tokens, while IguanaDEX will continue to specialize in efficient stablecoin trading using its stableswap bonding curve.
Proposed Plan:
Etherlink and the Tezos Foundation are committed to allocating a minimum of $300K in incentives to Uniswap pools over 3 months - starting mid-July - as part of Apple Farm season two.
We propose a co-incentive of $150K from the Uniswap DAO to further enhance liquidity and foster a collaborative growth environment. The Tezos Foundation will also provide initial liquidity in each pool to facilitate efficient deployment and trading.
Proposed incentive distribution
While the $300k allotment provided by the Tezos Foundation and the $UNI rewards will follow this distribution, the Etherlink team may choose to allocate additional incentives to blue chip/XTZ pairs in the future over the course of Apple Farm Season 2.
Uniswap V3 TVL on Etherlink: $2.5M,
Current Pools on Uniswap - Etherlink: https://oku.trade/info/etherlink/overview
Uniswap is already deployed on Etherlink.
By collaborating with the Uniswap DAO, Etherlink aims to strengthen its DeFi ecosystem and provide mutual benefits to both platforms. We look forward to your support and a fruitful partnership.
Etherlink, an EVM-compatible Layer 2 blockchain secured by Tezos Smart Rollup technology, proposes a co-incentive program to bootstrap liquidity on Uniswap v3. The Tezos Foundation commits $300K to incentivize strategic pools and requests a $150K co-incentive from the Uniswap DAO. This initiative will drive long-term liquidity, support ecosystem growth, and position Uniswap as the default AMM for uncorrelated asset pairs on Etherlink.
Etherlink is an EVM-compatible, non-custodial Layer 2 blockchain powered by Tezos Smart Rollup technology. It enables seamless integration with existing Ethereum tools, including wallets and indexers, and facilitates asset transfers to and from other EVM-compatible chains.
Built upon the secure foundation of Tezos Layer 1, Etherlink delivers a fast, fair, and (nearly) free experience. Developed by the same core teams behind Tezos and fully supported by the Tezos Foundation, Etherlink offers a permissionless and censorship-resistant environment that empowers developers to actively build and participate in the next generation of decentralized applications.
Officially launched in early 2025, Etherlink has seen strong TVL growth - rising from approximately $1.5 million to ~$45 million within a few months - driven primarily by the Apple Farm incentive program. With the launch of Season 2 and the onboarding of new protocols, we expect this growth to continue, targeting a minimum of $100 million in TVL by the end of the year.
Etherlink is developing its ecosystem by onboarding new categories of assets such as Physical Uranium; Treasury bills and DeFi strategies tokenized by Midas; licensed on-chain money market funds; and is looking to onboard new permissionless RWA tokens.
The goal is to establish Uniswap as the primary AMM for uncorrelated asset pairs on Etherlink. All future Tezos Foundation–supported project tokens - particularly in Gaming and Art - will deploy their primary liquidity pools on Uniswap. The Foundation is currently in the process of investing in several strategic projects within the Etherlink ecosystem, which will result in new tokens launching in the coming months. These tokens will be paired on Uniswap from day one, further cementing its role as the default venue for liquidity.
Apple Farm is an incentive program - powered by Merkl - designed to bootstrap DeFi on Etherlink by rewarding users who provide liquidity on DEXs, supply capital on lending markets, and trade on selected DeFi protocols. In season one, the participating protocols are Superlend, Hanji, Uniswap, IguanaDEX, & Uranium.io.
As the first AMM deployed on Etherlink (a PancakeSwap v3 fork), IguanaDEX saw significant growth in both trading volume and TVL, largely driven by incentives from Apple Farm.
Since Thursday, June 19th and through July 3rd, incentives are already being distributed to initial Uniswap v3 pools as part of Apple Farm Season 1. A total of $37,500 in rewards (not included in this proposal) will be allocated during this period, marking the beginning of Uniswap’s long-term role in Etherlink’s DeFi stack. The Etherlink team is coordinating with the Uniswap Growth Program on this proposal and will transparently share the terms and outcomes of the Season 1 distribution with the DAO.
In Season 2 - running approximately from July 15th to October 25th - at least $300K in incentives will be allocated to core blue-chip pairs, especially WETH/USDC, WBTC/USDC, and LBTC/USDC.
Uniswap will become the primary liquidity venue for all uncorrelated and ecosystem-native tokens, while IguanaDEX will continue to specialize in efficient stablecoin trading using its stableswap bonding curve.
Proposed Plan:
Etherlink and the Tezos Foundation are committed to allocating a minimum of $300K in incentives to Uniswap pools over 3 months - starting mid-July - as part of Apple Farm season two.
We propose a co-incentive of $150K from the Uniswap DAO to further enhance liquidity and foster a collaborative growth environment. The Tezos Foundation will also provide initial liquidity in each pool to facilitate efficient deployment and trading.
Proposed incentive distribution
While the $300k allotment provided by the Tezos Foundation and the $UNI rewards will follow this distribution, the Etherlink team may choose to allocate additional incentives to blue chip/XTZ pairs in the future over the course of Apple Farm Season 2.
Uniswap V3 TVL on Etherlink: $2.5M,
Current Pools on Uniswap - Etherlink: https://oku.trade/info/etherlink/overview
Uniswap is already deployed on Etherlink.
By collaborating with the Uniswap DAO, Etherlink aims to strengthen its DeFi ecosystem and provide mutual benefits to both platforms. We look forward to your support and a fruitful partnership.
https://gov.uniswap.org/t/calblockchain-blockchain-at-berkeley-delegate-platform/25378/19?u=calblockchain
https://gov.uniswap.org/t/calblockchain-blockchain-at-berkeley-delegate-platform/25378/19?u=calblockchain
While Etherlink's initial growth is encouraging, it seems heavily driven by its own incentives. Committing DAO funds at this early stage is premature, especially with Uniswap's current low TVL on the chain. It's more prudent to wait for signs of sustainable, organic traction before co-investing.
Incentives rarely result in sticky adoption, and the data provided for this program is insufficient to suggest otherwise. These funds are better deployed elsewhere. See our full analysis here: https://gov.uniswap.org/t/rfc-etherlink-x-uniswap-co-incentive-proposal/25670/2?u=pennblockchain
While Etherlink's initial growth is encouraging, it seems heavily driven by its own incentives. Committing DAO funds at this early stage is premature, especially with Uniswap's current low TVL on the chain. It's more prudent to wait for signs of sustainable, organic traction before co-investing.
Incentives rarely result in sticky adoption, and the data provided for this program is insufficient to suggest otherwise. These funds are better deployed elsewhere. See our full analysis here: https://gov.uniswap.org/t/rfc-etherlink-x-uniswap-co-incentive-proposal/25670/2?u=pennblockchain
FranklinDAO is voting AGAINST the proposal in its current state.
Most incentive programs are ineffective at creating sticky usage/TVL. Only in extraordinary and targeted cases does such a program result in sustained activity after incentives are depleted. There is insufficient evidence provided in this proposal to suggest this program is one of those extraordinary cases.
FranklinDAO is voting AGAINST the proposal in its current state.
Most incentive programs are ineffective at creating sticky usage/TVL. Only in extraordinary and targeted cases does such a program result in sustained activity after incentives are depleted. There is insufficient evidence provided in this proposal to suggest this program is one of those extraordinary cases.
Thus, we believe that this proposal is likely a waste of $150K that could be better deployed elsewhere in the ecosystem. Therefore, we are voting against the proposal.
FranklinDAO is voting AGAINST the proposal in its current state.
Most incentive programs are ineffective at creating sticky usage/TVL. Only in extraordinary and targeted cases does such a program result in sustained activity after incentives are depleted. There is insufficient evidence provided in this proposal to suggest this program is one of those extraordinary cases.
FranklinDAO is voting AGAINST the proposal in its current state.
Most incentive programs are ineffective at creating sticky usage/TVL. Only in extraordinary and targeted cases does such a program result in sustained activity after incentives are depleted. There is insufficient evidence provided in this proposal to suggest this program is one of those extraordinary cases.
Thus, we believe that this proposal is likely a waste of $150K that could be better deployed elsewhere in the ecosystem. Therefore, we are voting against the proposal.
