Uniswap has revolutionized the stock market and the crypto exchange system. Want to know how? Check out our article.
Centralized exchange sites have long monopolized the crypto market. These platforms impose their rules without sharing. But the launch of decentralized financial protocols is leading to significant change in the sector.
In recent years, new players in finance are innovating by creating decentralized sites dedicated to exchange services. This new program is better known by the abbreviation DEX or "Decentralised Exchange".
Uniswap is one of the main players and a stand-out company in the sector. In less than five years, it has led to impressive innovations. Uniswap has revolutionized the stock market and the online crypto exchange system.
Uniswap is a financial protocol on Ethereum that allows the exchange of ERC-20 tokens and crypto currencies. The unique feature of Uniswap is that it works in decentralized finance (DEFI or DEX). The name of the company that designed and launched the decentralized financial protocol is also Uniswap.
Based on the same principles as the IDEX protocol, Uniswap works by using a MetaMask Ethereum wallet to exchange, acquire and dispose of Ethereum tokens.
Uniswap was established on July 06, 2017. This company is the result of the determination of a man named Hayden Adams. Having lost his job at the market leader Siemens, he decided to jump into the world of entrepreneurship. On the advice of his friend Karl Floersch, Mr Adams discovers Ethereum and its potential.
Convinced, Hayden Adams begins to learn the basics of Ethereum, how it works, solidity and the JavaScript language. From there, he had the idea of launching an automated market maker. Uniswap became a real project.
Uniswap stands out from other decentralized trading platforms because of its unique pricing system, the "Constant Product Market Maker Model".
On other sites, exchanges directly connect buyers and sellers. This allows those involved to negotiate and set prices before completing the crypto transactions.
On Uniswap, a simple equation accompanied by a pool of ERC20 tokens can be used to perform the same operations. Note that for both transaction modes, the result is the same.
Uniswap has allowed investors and traders to build trust in the decentralized protocol. The protocol has solved many of the problems associated with centralized trading such as the considerable reduction of the risks of piracy and mismanagement, and arbitrary charges levied on exchanges.
It should be noted, however, that decentralized exchanges have a shortcoming: the lack of liquidity. But on the Uniswap platform, the existence of this problem is almost nil. The protocol allows the exchange of tokens without depending on buyers and sellers to create liquidity.
Uniswap is both a company and a decentralized financial protocol for trading active cryptos. To be able to use its services, a Uniswap crypto exchange platform was created in 2017.
The protocol allows cryptos to be traded on the platform without buyers and sellers having to establish a demand. To achieve this, the protocol uses a system of simple equations. This system automatically sets and balances the value of a transaction against the demand.
The financial protocol is available online on the uniswap exchange website. But to use it, you have to create an Ethereum address. Indeed, the use of a Meta Mask wallet requires the possession of an Ethereum address. On the Uniswap interface, transactions and token exchanges can be carried out with tokens.
A pool of uniswap liquidity is then accessible by adding or exchanging tokens. The concept is simple: simply output or input the required token during an exchange. The Ethereum wallet allows you to approve and conclude a transaction and confirm the exchange. For each exchange, Ethereum fees can be applied.
Uniswap is a protocol which works on conventions or smart contracts. The creation of a large number of user interfaces is observable.
Here are some applications that have already been added when using Uniswap:
This feature allows you to add funds to the interface pools without having to access the official interface.
The application allows Uniswap users to add funds or values to pools using only ETH instead of another token.
The latest version of Uniswap was released in May 2020. With this version, direct exchanges from ERC20 to ERC20 have become possible. Numerous other improvements have also been made to facilitate access to the interface. Users can now enjoy optimal and intuitive use of all the functions offered.
What is Uniswap crypto for ?
Bitcoin and Ethereum occupy the top two spots among cryptocurrencies in terms of market trading volume. The two take up almost 75% of the market.
Note, however, that Uniswap also has its own crypto that is created on its site: the native UNI token, a promising crypto. UNI tokens can be bought, sold, traded on the platform and on other crypto-currency exchange sites. UNI token is used for crypto trading, online financial transactions and investing.
UNI tokens can be stored or traded according to the trader or investor needs. Trading also depends on the opportunities available to traders and the market environment.
In just four years, uniswap's crypto UNI has become the 12th most followed crypto currency in the world. The latter is used in most of the online market cap sites.
How do you buy Uniswap ?
Uniswap tokens are created when new ETH tokens are added to a liquidity pool. The person who contributed gets a UNI pool token in return, which is also an ERC-20 token.
Pool tokens are created automatically the moment funds are deposited into the pool. The created tokens can be exchanged, bought and sold. To buy Uniswap crypto, there are several options:
Uniswap is accessible and open to any individual for a quick and easy account opening. By accessing the interface and having an Ethereum address, purchasing tokens and Uni tokens is a breeze.
Many other decentralized or centralized exchange platforms allow the purchase and storage of UNI tokens.
Online trading has been accessible to all types of investors for several years, including individuals, institutions, and companies. Online brokers offer investors and traders the possibility to exchange crypto currencies for other crypto currencies. This exchange is also valid against fiat currencies like the euro and the dollar. The platforms also offer the possibility to buy and store tokens and UNI cryptos.
