Uniswap offers a simple exchange of ERC-20 tokens on the Ethereum blockchain and several other compatible blockchains. The platform allows users to exchange through liquidity pools or stock liquidity pools to receive rewards for the exchange. Uniswap’s NFT Marketplace also integrates NFT with leading marketplaces. The platform is fairly easy to use, a little more effort is required to understand some of the details of the liquidity pool positions. Overall, Uniswap can be given a solid A for user experience, interface and features.
Uniswap supports Ethereum, Polygon, Optimism, Arbitrium and Celo blockchains.
In the US, Uniswap partners with MoonPay, a provider that supports a number of tokens, including MATIC and USDC.
Features of Uniswap
Automated Market Mapping: Uniswap uses a unique trading model that allows users to trade tokens without the need for a centralised order book.
- Wide selection of tokens: Uniswap supports a large number of Ethereum-based tokens, including ERC-20 and ERC-721 tokens.
- Ease of use: Uniswap has a simple and user-friendly interface, making it accessible to users with any level of experience.
- Decentralised: Uniswap is a decentralised exchange, meaning it is not controlled by a central authority and users retain control over their assets at all times.
- Open Source: Uniswap’s code is open source, allowing anyone to audit and verify its functionality.
- Initial Liquidity Offering (ILO): Uniswap allows projects to raise funds and create a market for their tokens through ILO.
- Reasonable fees: Uniswap charges relatively nominal fees compared to other decentralised exchanges, which makes it attractive to users.
- High liquidity: Uniswap has a large and growing liquidity pool, allowing users to trade even large numbers of tokens without significantly affecting the market price.
- Liquidity pool: Users can provide pool liquidity by contributing their cryptocurrencies to the pool, and in turn will receive passive income
Cryptocurrencies supported on Uniswap
More than 100 cryptocurrencies are available on Uniswap. Some of the popular cryptocurrencies are
USD Coin
Polygon Matic
Ether Wrapped
Tether
Dai
Wrapped BTC
Ethereum
Apecoin
Uniswap token
Rocket Pool Protocol
Liquidity pools
One of the best features of Uniswap is the ability for token holders to earn income by funding liquidity pools.
In a liquidity pool, you contribute paired tokens of equal value depending on the exchange rate.
Token UNI
UNI is a native token used in the Uniswap network. Anyone with a UNI token can vote on key decisions about the platform.
The issuance of the token is 1 billion UNI.
40% of the coins are locked up for the team and investors, and 60% are distributed to all community members.
Instead of tokenseal, the project team decided to conduct an airdrop: it awarded a fixed amount of UNI to every user of the decentralised exchange who at least once made some activity on it.
At its peak in May 2021, the coin reached $45. Thus, it now trades at a little over 7x of its ATN.
ADVANTAGES:
Very affordable swaps
Swaps fees are as low as 0.3% of transaction volume, which is much cheaper than other protocols.
ANALYSIS function
Be aware that sometimes your transactions executed on Uniswap may not be completed. This usually happens when the price of your incoming currency drops to a level that cannot meet the basic criteria you set. If the transaction cannot be completed, tokens are automatically refunded. However, the fee you have already paid will not be credited back.
Avoid unsuccessful transactions by using the “Analyse” option, which helps you determine whether you can complete the transaction in the volumes you currently need. If the price goes up, you also need to increase the number of tokens to exchange. This insures against failed transactions.
Good security
The decentralisation of Uniswap is arranged in such a way that no one stores your funds anywhere. Therefore, there is nowhere for cyber-attacks to be targeted. This is a big advantage over centralised exchanges.
Eliminates the possibility of identity theft
You don’t have to provide personal information to work with Uniswap, so identity theft is impossible.
Fast access to new tokens
As soon as new coins appear on the exchange, the platform automatically includes them in the offering.
Liquidity
Uniswap tokens are traded on all major cryptocurrency exchanges, so you can sell or buy them at any time.
Security of the protocol
Uniswap is open source and has been repeatedly tested by the development community. The smart contracts are fully secured.
Tokenomics
There is potentially little pressure on the price from investors, as the coins circulate freely on the exchange and are initially owned by ordinary users who have received the tokens by airdrop.
DISADVANTAGES:
Commission
The price of gas when exchanging on Uniswap will be higher than a simple transaction on the Etherium network
Free token listing
Due to the fact that absolutely any ERC token can be poured into Uniswap and it doesn’t cost a penny, skimming coins can appear on the platform. There is nothing to stop them from circulating as long as there is the necessary liquidity to exchange them. This is from the realm of natural selection: scammers can maintain liquidity artificially, but if ordinary users don’t buy the slag, their activities will prove pointless.
