what is Uniswap
In November 2018, the decentralized trade platform Uniswap was introduced. The biggest decentralized exchange (DEX) for exchanging ERC20 tokens on the Ethereum network is called Uniswap. By serving as an automated market maker (AMM), the Uniswap protocol leverages smart contracts to make trading of ERC-20 tokens easier. One of the earliest DEXs to develop an automated liquidity protocol for trade facilitation was Uniswap. It makes it possible for users to trade cryptocurrency without middlemen from anywhere in the world.
Uniswap is a Dex platform, known as a decentralized exchange. Uniswap is the biggest decentralized exchange (or DEX) for trading ERC20 tokens on the Ethereum network. The Uniswap system, which functions as an automated market maker (AMM), leverages smart contracts to simplify trading of ERC-20 tokens. Uniswap was among the first DEXs to develop an automated liquidity mechanism to help with trading. It enables users anywhere in the globe to trade cryptocurrency without the need of an intermediary.
How uniswap work
Uniswap has a very different look than other exchange services, such as centralized platforms like Binance or Coinbase. As we saw in the beginning, users cannot place orders in a traditional order book for any quantity. Uniswap operates using what is known as liquidity pools. Liquidity providers regenerate these financial reserves. Anyone may become a liquidity provider by simply depositing equal amounts of the two tokens that comprise the trading pair in concern. This may be any pair of ERC-20 tokens, but most typically, trading pairings are based on ETH or a stablecoin like USDT.
Total coin trade in Uniswap and total volume
Uniswap supports all trading pairs on Eth, so a large number of ERC20 coins are available on Uniswap.In July 2023, there are 900+ currencies and 1800+ trade pairs available on Uniswap. The 24h trade volume for Uniswap V3 (Ethereum) has been forecast to be $451 million, and the most active trading pair is WETH/USDC, with a 24h volume of $163 million.
Uniswap own coin explained
In September 2020, Uniswap announced its launch of UNI, with a total supply of 1 billion UNI tokens. UNI was created on Ethereum and is an ERC-20 token, thus it may be kept in any cryptocurrency wallet that accepts ERC-20 tokens. The UNI token gives its users control rights, which means they can vote on changes and improvements to the system. The number of governance tokens Uni user has determines how much vote power they have. The process of making decisions is not centralised, so anyone can make a suggestion and anyone can vote. UNI tokens can be bought and sold on different cryptocurrency markets, so buyers can use them to trade for other cryptocurrencies.
Benefit of using Uniswap
- Swap Any ERC-20 tokens
- User-friendly design
- Earn crypto with liquidity mining
- No registration required
- No KYC required
- Crypto wallet support
