Uniswap is presently the real thing in the crypto world. It is a protocol that makes crypto trading simple, secure, and reliable. It allows you to create a cryptocurrency exchange in less than an hour. You can customize it to meet your requirements then deploy your exchange in a couple of minutes.
If you are new to the crypto world and hearing about Uniswap for the first time, you would want to know more about it before you consider buying Uniswap. So, in this post, we will be providing you with important things you need to know about Uniswap with the aim of helping you make an informed decision about your investment.
What Is Uniswap?
Uniswap is a decentralized, peer-to-peer, automated market maker that makes it easy to trade tokens directly from your cryptocurrency wallet.
Uniswap was founded by Hayden Adams in 2018, who wanted to create a way for traders to exchange ERC20 tokens without requiring human intervention. Uniswap’s unique design and protocol allow users to trade tokens directly with one another without having to trust a third party or exchange platform.
In 2020, Uniswap became one of the most popular DeFi projects in the world. Uniswap’s daily trading volume peaked at $1 billion in August 2020 and has remained high ever since— as of November 2020, Uniswap’s daily trading volume was more than $600 million.
At its core, Uniswap is an automated market maker (AMM). This means that there are no order books on Uniswap, unlike traditional centralized exchanges like Coinbase and Binance. Instead, Uniswap employs an algorithm that automatically sets prices for each token listed on the platform based on supply and demand. Uniswap does not require users or traders to have any special skills or knowledge about how exchanges work.
How Does It Work?
Uniswap has a very unique way of working. It uses automated market makers (AMMs). There are no order books or any other traditional exchange feature.
Instead, there are pools of liquidity where traders put their funds for others to use for trading purposes. If a trader wants to enter or exit a position, they pay a fee to the liquidity pool as compensation for the service.
Traders who want to provide liquidity can take their Ethereum coins and deposit them into one of the pools on the network. The amount of coins being held determines how much ETH can be swapped for another coin or vice versa.
What Makes Uniswap Unique?
- Uniswap is a decentralized exchange protocol that allows users to trade and swap Ethereum tokens (ERC-20) with each other. It runs on the Ethereum blockchain, meaning it is permissionless and trustless.
- A user interfaces that anybody can use. Anyone can use Uniswap provided they have an Ethereum wallet with some Ether in it (to cover transaction fees). Uniswap enables accurate and reliable price discovery through an incentivized, failure-resistant market structure.
- Uniswap enables accurate and reliable price discovery through an incentivized, failure-resistant market structure.
- Non-custodial trading
- No gas fees
- Flexible pricing based on supply and demand
- Easy access to the market via Ethereum wallet apps like MetaMask and Coinbase Wallet
How Many Uniswap (Uni) Coins Are There In Circulation?
Uniswap has a fixed supply of 1,000,000,000 UNI tokens. Currently, 1.9% of it is in circulation, as the team had released 20,000,000 UNI tokens on September 17, 2018. The foundation, liquidity providers, and the founding team received 10%, 50%, and 40%, respectively.
Uniswap’s Important Milestones
These are some of the most important milestones of Uniswap:
- February 2018 – Idea was born.
- July 2018 – Uniswap was launched in beta on Ethereum mainnet and set to work with ERC20 tokens only.
- May 2019 – Uniswap v2 was launched on the Ethereum mainnet.
- September 2019 – Uniswap became one of the top 5 decentralized exchanges in terms of the trading volume.
- October 2019 – Uniswap Foundation was created to support the growth and development of the protocol.
What Is the Current Price of Uniswap?
The current price of UNI as of the time of writing this post is $10.64, trading up 0.09% in the past 24 hours but down 39.05% in the past week. Considering the price history of Uniswap, this is probably a good time for anyone who would want to buy UNI to do so. The coin has suffered a great drop from its all-time high, which means it is presently facing a lot of upside for it. But once the market flips bullish, investors should expect tremendous gain from the coin.
How Can I Invest In Uniswap
There are a few ways you can invest in UNI. The easiest way is to invest through a centralized cryptocurrency exchange such as Coinbase or Kraken. You can also purchase UNI through the Uniswap platform by using another cryptocurrency like Ethereum.
Can Uniswap Be Hacked?
Uniswap is a decentralized exchange that uses blockchain technology to secure its transactions. Smart contracts are used to execute trades automatically, and because they are unalterable, hacking is less likely to occur. However, in 2019 Uniswap experienced a security breach that cost the company $340,000. Despite this, Uniswap remains one of the most secure exchanges available.
Which Wallets Are Compatible With Uniswap?
To use Uniswap, you need an Ethereum wallet compatible with the ERC-20 token standard. This means that you can use any hardware or software wallet that supports this standard (most of them do).
Here are some of the most popular wallets you can use for Uniswap:
- Ledger Nano S