By Bita Abolfathi 2.14.2025
Dakotah breaks down the design process behind Bunni, how they're leveraging Uniswap v4 hooks to optimize returns for LPs, and how simplification can drive innovation in DeFi.
My journey began during the volatile markets of 2020. I was shorting the stock market and was ironically looking to derisk my position when I discovered crypto through Coinbase.
What really caught my attention was Bitcoin’s limited supply and the ability to trade on weekends – it was a whole new world of possibilities. Eventually, I began exploring altcoins, which led me deeper into the crypto ecosystem.
The transition was organic. As I researched different projects, I found myself wanting to contribute more directly. Bunni stuck out to me as disruptors in the industry, so I reached out and asked how I could get involved.
They initially gave me a small job without pay and suggested answering questions in their Discord, where I made it my mission to answer every single question that came in. This led to a business development opportunity, and from there, my involvement in the space just kept growing.
Bunni is a next-generation DEX built on top of Uniswap v4.
Our core mission is to maximize rewards for liquidity providers. Through our rehypothecation hook, for example, we're enabling idle assets to work for you inside of other defi projects until they are needed for swaps. This boosts LP returns by adding a second flow of income.
Uniswap is an ecosystem we wanted to be associated with. The community is growing, and we see its potential as being higher than anywhere else in DeFi. The support we've received has been comprehensive – from content creation to technical guidance, grant opportunities, and even an audit subsidy through the UFSF.
The main challenge has been educational. We need to help users understand third-party risks and how Uniswap v4's architecture allows fees to flow back to liquidity providers. It's a complex system that needs to be communicated clearly.
This ties into my broader vision for DeFi – the future is in simplification. We're seeing cryptocurrencies increasingly referenced in mainstream media, even with presidents launching memecoins, but we need to make everything feel less intimidating for newcomers.
We're already live and focused on being a friendly space for LPs. Users can explore different pools and see what's being rehypothecated, or create their own pools. One of our immediate goals is developing an oracle for LP tokens so they can be used as collateral. While I can't reveal all our plans, we're working on several exciting initiatives that will further enhance the LP experience.
Simplify, and then simplify more. Many brilliant minds in this space struggle to communicate effectively because their version of 'simple' is still several levels above the average person's understanding. Focus on tailoring your content to someone who wants to learn, but is coming into our space having a foundational understanding of money and investing from things like Robinhood, Acorns, and high yield savings accounts. And if you’re new to the space, remember, there are always teams looking for contributors who can help them grow – the only thing holding you back is your willingness to put in the effort.
We're no longer early – if anything, we're about a third of the way there. The numbers speak for themselves when it comes to the potential returns by participating in DeFi. As we continue to simplify and smooth out the rough edges, I believe we'll see increased adoption from traditional investors who aren't planning to retire soon and can take on some risk. The future is incredibly bright, and we're getting closer every day to making DeFi accessible to everyone.
Note: The views expressed herein may not reflect the views of the Uniswap Foundation. This interview is provided for informational purposes only and does not constitute legal, financial, or professional advice.
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