Good Sunday Publish0x community and welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible” area.

In this article we talk about more features of Uniswap!

Last Sunday I introduced you Uniswap (UNI) and, if you remember, I said that it is a protocol built on the Ethereum blockchain, that allows users to easily exchange between any ERC-20 tokens in a completely decentralized manner. Their goal is to lower the barrier of entry to financial markets by making it easy to join the Decentralized Finance (DeFi) movement. The platform aims to allow anyone to create their own liquidity pools.

If you missed the article you can recover it here before to continue this one.

Although Uniswap is a very popular component in the DeFi ecosystem, it is not without criticism or flaws. In July 2020, complaints about "fake tokens" on the Uniswap exchange began to appear. Since anyone can list tokens on Uniswap, and its decentralized nature means that there is no need for censorship, it is easy for scammers to create tokens with names similar to popular DeFi platforms and entice users to buy worthless Token. In August 2020, Uniswap took some steps to try to alleviate this problem by introducing lists. These lists are decentralized solutions to the decentralization problem, aiming to determine the legitimacy of tokens based on the number of tokens and the credibility of these lists. Whether scammers will find a way to exploit this system remains to be seen, but for now, this seems to be a good way to solve the problem while still maintaining Uniswap’s inherent decentralization and still allowing legitimate projects to quickly and easily add their token.

You have probably noticed too how Uniswap has become more and more popular in the last period. So, let’s see some advantages!

• First of all, you can have the access to different new coins. Since Uniswap is decentralized and owing to their popularity, a lot of projects are instead choosing to launch on Uniswap directly. This is crucial for traders that consider important to be the first ones to own the tokens because of the crazy fluctuation prices, especially when they first launch.
• Then we can consider the low trading fees. It is much cheaper than most decentralized exchanges with only a flat fee of 0.30% per trade.
• Uniswap allows you to retain full custody of your funds. So, there is no risk associated with centralized exchanges where you could stand to lose your funds if the exchange is hacked or goes bankrupt.
• There is no Know Your Customer (KYC) process. Uniswap allows you to keep safe custody of your funds, don't require you to go through a lengthy KYC process and reveal your full name, passport details, etc. It also means that getting started with the exchange will be much faster and will drastically reduce the chances of your personal information falling into the wrong hands if the Exchange is hacked.

Regarding the UNI token, 60% of the UNI genesis supply is allocated to Uniswap community members, a quarter of which (15% of total supply) has already been distributed to past users. 1 billion UNI have been minted at genesis and will become accessible over the course of 4 years. A perpetual inflation rate of 2% per year will start after 4 years, ensuring continued participation and contribution to Uniswap at the expense of passive UNI holders.

So, should Uniswap be a great Decentralized Trading Protocol? Have you some advice to share with the Publish0x community?

Let me know in a comment below!

Next Sunday I’ll introduce you a new cryptocurrency!

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