What is Uniswap?
Uniswap DeFi, decentralized marketplace, secure, own UNI token. Uniswap v3 updated, the protocol is available for everyone, KYS is not required, and you can make passive income on exchanges in native UNI tokens.
What is Uniswap?
Centralized cryptocurrency exchanges are considered to dominate the market. But they have competitors in the form of decentralized platforms. Among them, the most famous is Uniswap.
History of Uniswap appearance
First, the Uniswap platform is a decentralized protocol designed to execute trades with virtual assets using smart contracts. It functions in the Ethereum network. It is the first project in the world where an automated market maker and liquidity pools have been implemented. The Uniswap DeFi protocol has an interesting origin story.
The creator of the platform is Hayden Adams. He was advised to develop a cryptocurrency trading app using an automated market maker mechanism. In the summer of 2018, Adams got $100,000 from Vitalik Buterin's Ethereum Foundation to bring his concept to fruition. Other entities were involved in the development of Uniswap. Among them are Uchiel Wilchis, Andy Milenius, and Philip Dayan.
A demo version of Uniswap was introduced in March 2018, and the full version of the system was launched in the fall. An interesting fact—at first, Adams wanted to give the protocol a different name - Unipeg. But Vitalik Buterin, who was aware of the platform's development, suggested the name Uniswap, and Adams decided to keep it.
How does Uniswap work
The protocol has smart contracts that allow all users to trade without intermediaries. The client conducts the transaction from his wallet. From it, the money is transferred to the smart contract. It automatically completes the transaction. The user receives the digital coins, and the counterparty receives the user's funds. The transaction between the user and the protocol is conducted without delay, the asset rates are the same for the seller and the buyer. No order is created on a centralized platform. The exchange collects a transaction fee.
What are the advantages of Uniswap?
The pros are the same as for all other DEX—you do not have to go through the procedure of confirming your identity. The client does not have to provide any data about himself. The system is decentralized, and there is no risk of centralized blocking. Another advantage—users do not need an account to make trades. You only need to use a wallet.
Any ERC-20 standard token can be purchased and exchanged on Uniswap. New tokens appear on this platform quite quickly. These are the main advantages of Uniswap. And like any system that is going to work in the market, Uniswap is evolving. One of the most important updates to the protocol is Uniswap v3.
Uniswap v3 is considered one of the most important technical updates of the protocol. Of course, it is not a Bitcoin halving, but it is also important for improving the system.
In a way, it is a simple method of creating an Ethereum order book ontology, where market makers make decisions about providing liquidity in price ranges. Uniswap v3 introduced the concept of active liquidity. If the price suddenly moves out of a predetermined LP range and the liquidity is removed from the pool, there is no profit.
After the update, a new type of order was introduced—a limit range order. With it, the liquidity pool can allocate tokens to certain ranges above or below the current market prices. In addition, multiple positions were introduced—liquidity pools were allowed to allocate liquidity to the same pool according to different price ranges.
What is Uniswap UNI Token?
The protocol has its own UNI token. The coin is used to participate in the management system. The token was launched two years ago. There was an airdrop, and users were credited with fixed amounts if they took action on the site at least once.
When the protocol was created, 1 billion coins were issued. Sixty percent of those are distributed to current community members. The rest will be available to the team, as well as to investors and advisors.
Uniswap LP tokens as NFTs
It should be pointed out that in Uniswap v3, liquidity provider positions are presented as NFTs, not in the standard ERC-20 coin format of Uniswap v2. An exclusive NFT is created based on the pool and the parameters that are selected in the liquidity provisioning interface. This represents the user's position in a particular pool. As the NFT holder, the user has the right to change or redeem his position.
How to use Uniswap?
Every user can use the protocol. To do this, he must log into the interface and connect a wallet. There are different wallets, and most often, clients prefer MetaMask. Next, the user chooses a coin to exchange, selects the asset he wants, clicks the “Exchange” option, and checks the transaction data. Then confirms its execution in the wallet.
Is it possible to earn passive income with Uniswap?
To earn passive income, you can take advantage of the opportunities offered by the Binance exchange. The exchange has a feature that allows for passive income on a UNI token deposit. If the user wishes, he can withdraw the income at any time when it is convenient for him. This is a legal way to earn passive income through Binance.
How to buy Uniswap
To buy Uniswap digital token (UNI), you just need to use the functionality of the EXEX crypto exchange. You can also buy cryptocurrency on almost all known cryptocurrency exchanges.
Can Uniswap digital currency be considered profitable to invest in?
Any prediction that concerns a particular coin is approximate. Data about the market situation is constantly changing. Therefore, it is difficult to say how valuable Uniswap will turn out to be in the short and medium term.
To make investments in the token profitable, you can use some cash in your investment portfolio to minimize the risks. There are opinions that Uniswap will increase in value over the next few years and could exceed $34 per UNI. Such a variant cannot be excluded, as well as a lower price.
According to some estimates, the value of the UNI token in 7-9 years will exceed $90 and above. It will be clear in a few years how accurate these estimates are. For now, Uniswap remains one of the best decentralized token exchange and purchase platforms on the market.