Hello everyone! It’s been nearly a month since we opened up a Uniswap-based store.
The dynamics at play have worked out great, so let’s delve right into it. To recap, we wrote a series of blog posts about tokenizing products and using Uniswap’s dynamic pricing method. Uniswap first started doing this with collectible socks, which can be redeemed through purchase of their unisocks token. We thought this was very clever and quirky, and could be very useful for artisans.
Memes were circulating calling DeFi platforms like Uniswap and Ethereum “Money Legos” because financial products were being build on them. So with the help of cent, we remixed and 3D printed rings with lego-compatible prongs.
Disclaimer: we’re not affiliated with The Lego Group.
When someone burns our product token, we take the address that burned it, turn it into a QR code that prompts Ethereum-enabled apps, and set it with epoxy. We also take the address and program an NFC chip embedded in the ring.
As you could probably imagine, this kind of customization takes a while. Specifically, it takes 37 minutes to 3D print, about 5 minutes to sand to a smooth finish, 5 minutes to print out the QR code and set it, 24hrs for the epoxy to cure, and about 15 minutes for assembly and shipping. So what happens if we get swamped with orders? This is where the beauty of Uniswap’s dynamic pricing comes in.
High demand for our product token means the price of each unit will incrementally increase. We started selling Unirings at about $10, but this increased to around $25 within the first couple of weeks. This price jump stabilizes the amount of orders we receive. Once we catch up on the backlog, we can lower the price by adding more liquidity to the trading pool.
If customers love our product and are willing to pay the increased price, we’ll have excess capital to invest in upgrading our manufacturing output, meaning we could hire workers or purchase a faster printer. Do you get why this model could be perfect for artisans?
We took the money we made from selling rings and bought a t-shirt press, and added a custom t-shirt to uniswag.
Our goal is to open up uniswag to third party vendors. If you’re an artisan interested in uniswap-izing your product, follow us here or on twitter for the latest updates.
Thanks for reading!