UNI/USD (-4.79%)
Are you looking to invest in a new cryptocurrency project? If so, you may want to take a closer look at Uniswap (UNI). UNI is a decentralised exchange that allows users to swap different ERC-20 tokens. Here is an overview of Uniswap features and its pros and cons.
A Bit About Uniswap
Uniswap is an exchange that allows users to swap different ERC20 tokens. The concept is similar to EtherDelta but without the use of smart contracts. Instead, Uniswap uses liquidity pools which are automated market makers on the platform; these liquidity pools match orders between buyers and sellers. Uniswap is based on the concept of a 'liquidity network', which allows anyone to become a market maker on the platform. A liquidity pool is an ERC20 token that is tied to UNI tokens. This means that users can easily withdraw and deposit their liquidity pools without going through complex processes such as creating an account on a centralised exchange. Although the concept of Uniswap may sound complicated at first, it's pretty simple to use. Simply send your tokens to the same wallet address that you would use for any other ERC20 token transfer and wait for them to be swapped.
Swap, earn, and build on the leading decentralized crypto trading protocol.CryptoLists.com
The Uniswap currency (UNI) is Uniswaps local governance token. This kind of tokes gives its users the power to vote on suggested modifications to the platform. UNI was developed in 2020 September as a reward for users to stay on the Uniswap system instead of shifting to SushiSwap, a branch of Uniswap and a competitive decentralised exchange (DEX). A month before the UNI token launch, SushiSwap mobilised Uniswap users to shift to SushiSwap by awarding those who agreed to shift with SUSHI tokens. The SUSHI currency was a different type of governance currency that would give investors a portion of the transaction costs generated by the platform. As a result of this change, Uniswap decided to produce 1 billion UNI cryptocurrencies and transfer 150 million of them to all past platform users, where each person received 400 UNI.
Utility of Uniswap?
As mentioned earlier, Uniswap is an automated liquid system. This is among the popular DEX (decentralised exchanges) globally because of the rise in popularity of DeFi (decentralised finance). Uniswap has two significant characteristics, which are:
Swap: The Swap feature enables Uniswap traders to swap between ETH (Ethereum) and different ERC-20 cryptocurrencies.
Pool: The pool feature enables Uniswap users to gain by providing liquidity. This is achieved by depositing currencies into a contract in exchange for pool tokens.
Uniswap is so popular because:
Self-custodian:
Uniswap enables you to fully retain your funds; hence there is no risk associated with centralised trading.
The KYC( know your customer) process
Since Uniswap enables you to retain your fund's custody fully, they do not ask you to undertake the KYC process. This means starting an exchange is much easier and quicker and will reduce the chances of getting your data to the wrong hands.
Low trading fees
Uniswap charges only 0.3 flat fee per trade. It's much cheaper compared to most decentralised exchanges.
Uniswap Price details
ERC20 Contract address: 0x1f9840a85d5af5bf1d1762f925bdaddc4201f984›› Details & Tokenomics
›› UNI tokenomics and social media
Advantages of Uniswap
+ The platform allows users to take advantage of sub-second trades+ It is built on the Ethereum blockchain.
+ It attracts a very low trading fee (0.01% to 1.00%)
Disadvantages
- The platform does not accept fiat currencies.- It attracts high gas fees.
- It lacks a KYC (Know Your Customer) verification.
- Uniswap only supports assets transfers on the Ethereum blockchain.
Costs
▪ Rated at 8/10Like any other decentralised exchange, there are fees when using Uniswap. The main cost associated with the platform is gas which you would have to pay when transferring your tokens into or out of the liquidity pool.
Traders must pay a fee of 0.3% to transact on the platform. There is also a 0.26 UNI charge for withdrawing. Since both buyers and sellers can become market makers on Uniswap, it provides them with the opportunity to make a profit. For example, if you can predict that the price of REP will rise in value, you could purchase it and sell it later at a higher price point.
Reputation and Buzz
▪ Reputation rated at 9/10▪ Buzz rated at 8/10
Decentralised exchanges have been growing in popularity since 2017. However, several projects have failed to deliver on their promises and have become scams instead. Because of this, you must do your research before investing in any new cryptocurrency.
UNI tokens are not mineable, which means they rely on trading to generate value. While Uniswap may not be as well-known as centralised exchanges such as Binance, it has gained a good reputation over the past few months.
You can see this from various review sites and platforms online. These platforms are watchdog sites and offer impartial reviews on different platforms. You will also find reviews of other traders from Uniswap's official website. They are legit and trustable.
FAQ
Does Uniswap got their own blockchain?
Uni (Uniswap) is a software system that is open and built on the Ethereum blockchain that enables traders to trade automated crypto. Uniswap has a unique feature that enables investors to exchange cryptocurrency directly with each other without involving intermediaries.
They use an automated liquidity system instead of the standard order-book format for sellers and buyers. These automated liquidity pools also solve the liquidity issues primarily found in centralised trading, where investors rely on having adequate volume to satisfy buyers and sellers needs.
Uniswap is encouraged to pool its funds in a fund that any investor can potentially draw to make a trade. Since traders can sell and buy various cryptocurrencies, each token mentioned has its liquidity pool, with smart contracts determining the values.
LPs(Liquidity providers) who pool their funds are rewarded with coins equal to the proportion they contributed to the pool (say 1 per cent), which may then be exchanged for a percentage of the transaction fees produced by that pool. Since Uniswap is free software, anyone can utilise their code to establish a decentralised exchange.
What does Uniswap Protocol mean?
Uniswap protocol is a free-source platform that provides liquidity and trading ERC20 cryptocurrencies on Ethereum.
How do I utilize Uniswap protocol?
To create a fresh liquidity pool, produce liquidity, vote on governance suggestions or swap tokens, go to Uniswap interface, and link a Web3 wallet.
How does the Uniswap protocol operate?
Uniswap is an automated trading platform. In other words, it's a set of smart contacts that make a standard way to build liquidity, liquidity pools and swamp assets.
Screenshots from Uniswap
More sites where to buy/sell/trade Uniswap
Below you can see some other platforms, exchanges and/or brokers where you can buy, sell or trade this token. Click on the logo to read our review.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Never speculate with money which you can not afford to loose. Cryptocurrencies exhibit significant volatility and remain largely unregulated within numerous European Union nations. They are not covered by European Union protections and do not fall under the purview of the EU's regulatory framework. Please be aware that investments in this sector are prone to market risks, which may include the total loss of the invested principal.
Remember to never risk money that you can not afford to loose. Crypto currencies is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Uniswap details and tokenomics
BSC Contract address: 0xbf5140a22578168fd562dccf235e5d43a02ce9b1
MATIC Contract address: 0xb33eaad8d922b1083446dc23f610c2567fb5180f
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