What is Uniswap

Uniswap

Uniswap is an upcoming decentralized exchange that aims to provide a user friendly and convenient way of trading Ethereum based tokens. According to the Uniswap Bancor blog, their vision is focused on building liquidity into all ERC20 compatible tokens in order to create a single liquid pool of value. They expect this process will help drive down the spread between buy and sell prices over time, which has been one of the biggest bug bears with existing exchanges.

How big is Uniswap (UNI)

Uniswap is the biggest ethereum token exchange in terms of users and volume, with over $200 million in transactions processed to date. So Uniswap, or its ticker: “UNI”, is one of the most popular cryptos out there and is currently ranked number 13 in the list. With a market cap of almost 13B and about 627M coins in circulation it now (at the time of writing) has a price around the $22 mark.

A major part of the job for the UNI development team is getting feedback and support from the community members. Since they can’t interact so often with everyone individually, they are still listening to the community.

Where to buy Uniswap

It can be bought easily at the more popular centralized exchanges, like binance.com and coinbase.com. Uniswap can be bought by using a credit card, a SEPA transfer, or by using another cryptocurrency like Bitcoin, Ethereum, or Tether USD. On the exchanges, you can search for “what you won’t pay”/”what you want to buy”. This is what makes it possible for the exchanges to provide liquidity for a lot of orders in multiple currencies, all at once.

Staking Uniswap

Uniswap uses a consensus mechanism that is a lot like Proof-Of-Stake. This means that after you have bought (usually a very large amount of) the UNI token, it can be staked and gives the rights and funds for the smart contract to check and add new blocks of transactions. By providing liquidity, you will be rewarded by the network. But beware, when tokens are staked they cannot be traded for a set amount of time. Staking (or yield farming) is also used to help exchanges increase their liquidity. Staking then happens in a staking pool and participants are rewarded, sometimes up to 20% per year. For this to happen, the person in question must also stake a lot of tokens. The rewards are normally calculated in a way the biggest liquidity providers get the biggest chunks of the reward, where the rest is split between the rest.

How is Uniswap used today

Uniswap is already used for making payments, but more by hosting decentralized finance apps. Those dApps could only work and make an impact like they do because of the low transaction costs on this network. The Uniswap network is also used for and creating & trading NFT’s — non-fungible tokens. Most often this is digital art or an official document. This is because there can only be 1 real owner on the blockchain. However, most people buy UNI because they think the price might go up, and do so by using a popular exchange.

Algorithmic trading bot for Uniswap

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