Uniswap (UNI)

The exchange rate of one UNI at 15:16 UTC is 7.639$

Chart | Average rate

“Uniswap” is one of the largest decentralized exchanges for cryptocurrencies. Uniswap was able to cause a big stir when the Uniswap token (UNI) was airdropped to users. At the same time, each user who used Uniswap before the airdrop received exactly 400 UNI tokens.

How does Uniswap work?

Uniswap is a decentralized cryptocurrency trading platform. It is based on various smart contracts that allow the exchange of tokens. The use of this differs from traditional exchanges in several respects.

"The Uniswap protocol allows developers, liquidity providers and traders to participate in an open and inclusive financial marketplace." - Uniswap website

Thus, the user cannot create an account with Uniswap, but access is done directly through the corresponding Ethereum wallet. For this, for example, MetaMask or a trusted wallet is suitable. Thus, the user also does not need credentials such as email and password, but simply needs to link their personal wallet to the application. Thus, he does not need to disclose personal information and does not reveal his identity (KYC guideline).

What are the differences between CEX and DEX?

In addition, a decentralized exchange does not usually provide an order book. Likewise, there is no central liquidity provider for trading to take place. In the case of CEX, this task is usually carried out by the platform operator to ensure smooth processing of barter transactions. However, it also allows them to influence and benefit from the course in their favor.

However, the DEX distributes this task to the users themselves. The so-called pools allow users to deposit capital into the respective smart contracts and thereby earn themselves from the trading fees. Thus, the price is calculated from the available liquidity. Uniswap trading is subject to a fee of 0.30 percent.

Is Uniswap safe?

Since Uniswap is a decentralized exchange, two things that are especially important in terms of security come into play. A prerequisite for the safe use of DEX is the basic programming code. Smart contracts are considered secure in and of themselves, but always only if there are no bugs in the code.

“Since its launch, the Uniswap protocol has served as a trusted and highly decentralized financial infrastructure.” - Uniswap website

Uniswap is the largest and most famous DEX to date and has its origins in the United States of America. Its creation was founded in 2018 by Hayden Adams, a former Siemens machine builder. The platform is based on the Ethereum blockchain and uses the Solidity programming language. In addition, the software is licensed under the GNU General Public license, which makes it public and allows anyone to use it.

Who invests in Uniswap?

Investors include Andreessen Horowitz, Union Square Ventures and ParaFi, for example. In February 2021, Uniswap reached $100 billion in trading volume, making it one of the largest cryptocurrency trading platforms in the world.

Decentralized exchanges. What should I pay attention to when using them?

Another important factor related to security when using DEX is the user himself. Since access is made directly through their own wallet, the user also takes full responsibility for their finances on their own. The most common mistakes here include lost credentials, malware on your own computer, and phishing attacks.

What is Uniswap Token (UNI)?

Uniswap is a decentralized exchange that also determines the further development of the platform by users. Thus, the UNI token primarily serves to manage and develop the stock market. This gives token holders the right to vote on future changes to the system.

How many Uniswap tokens are there?

The token has only been in circulation since September 2020, with 60 percent distributed to users and the remaining 40 percent held by the founding team. In total, there are a billion universal tokens. Meanwhile, the token is tradable on the open market and available on numerous exchanges.