Know more about Uniswap

By Sshafiu015 | Sshafiu015 | 3 Dec 2020


Uniswap is a decentralized cryptocurrency exchange which facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts

Key Takeaway's

  • Uniswap is Ethereum's most popular decentralized exchange.

  • In addition to trading cryptocurrencies, users can stake their holdings in liquidity pools and vote on governance decisions.

  • The exchange uses the UNI token for its governance model.

What is uniswap?

Uniswap is a set of computer programs that run on the Ethereum blockchain and allow for decentralized token swaps. It works with the help of unicorns.. Uniswap allows users to trade without
intermediaries, with a high degree of decentralization and censorship.

Since the Uniswap protocol is decentralized, there is no listing process. Essentially any ERC-20 token can be launched as long as there is a liquidity pool available for traders

How to use uniswap?

Uniswap is an open-source protocol, meaning that anyone could create their own frontend application for it.

Steps

  • Go to the Uniswap interface.
  • Createyour wallet. You can use Trust Wallet, or any other supported Ethereum wallet.
  • Selectthe token you’d like to exchange from.
  • Selectthe token you’d like to exchange to.
  • Clickon Swap.
  • Previewthe transaction in the pop-up window.
  • Confirmthe transaction request in your wallet.
  • Waitfor the transaction to be confirmed on the Ethereun blockchain.

How does Uniswap make money?

You can earn money on Uniswap by providing liquidity through a pair of assets like ETH and DAI. Uniswap uses these assets as liquidity for traders. In return, it shares the trading fees with you.
Adding liquidity requires depositing an equivalent value of ETH and ERC20 tokens into the ERC20 token’s associated exchange contract.

The first liquidity provider to join a pool sets the initial exchange rate by depositing what they believe to be an equivalent value of ETH and ERC20 tokens. If this ratio is off, arbitrage traders will bring the prices to equilibrium at the expense of the initial liquidity provider.

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The Uniswap (UNI) token

Uniswap is a decentralized exchange that allows users to fund liquidity pools and earn revenue.
1 billion UNI tokens have been minted at genesis. 60% of those are distributed to existing Uniswap community members, while 40% will be made available to team members, investors and advisors over the course of four years.

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How to claim Uniswap (UNI) tokens

If you’ve used Uniswap, you can likely cl63bb87040b072fc7a7f2ce38cb6b82729a1c60459bf511fd964da71b9acad97b.jpegaim 400 UNI tokens per address that you used Uniswap with. To claim your tokens:

  • Go to https://app.uniswap.org/.
  • Connectthe wallet that you previously used Uniswap with. 
  • Clickon “Claim your UNI tokens”
  • Confirmthe transaction in your wallet (you can check the current gas prices at the Ethsan Gas Tracker).

 

Closing thought

Uniswap is an innovative exchange protocol built on Ethereum. It allows anyone with an Ethereum wallet to exchange tokens without the involvement of any central party. 

Thank you.

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Sshafiu015
Sshafiu015

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