Uniswap

What is Uniswap?

Uniswap — decentralized cryptocurrency exchange. Since it works on the principle Automated Market Maker (AMM)it works through smart contracts to create liquidity pools for ERC-20 tokens and execute the algorithm without using an order book.

Tokens are deposited into pools liquidity providers (LPs). The liquidity provided by the LP sets the UNI price quote for traders without the assistance of any professional market makers. If you want to see the current price of UNI, be sure to take a look at the Uniswap price chart above.

Users who contribute to Uniswap liquidity pools receive pool tokens. Each token represents a small portion of the liquidity pool, which also includes a 0.3% trading fee. The token can be exchanged or sold. Moreover, it can also be used in other applications. However, these tokens are burned as soon as their owners withdraw their funds from the pool.

Uniswap strives to improve trading efficiency while keeping token trading automated and fully accessible to everyone. Various automated methods (used to solve liquidity problems) help Uniswap achieve its goal. Additionally, it manages to avoid the problems that decentralized exchanges have faced in the past.

The protocol encourages participation by limiting risks and reducing costs for all parties. This is achieved by automating the market making process. Additionally, a liquidity pool for any pair of tokens can be created by anyone thanks to AMM removing restrictions on user identification.

Founders of Uniswap

The idea of ​​Uniswap originated from Vitalik Buterin A 2016 proposal for a decentralized exchange (DEX) that would use an automated on-chain market maker with specific specializations. Hayden Adams began working on turning this concept into a useful product a year after this proposal.

Vitalik Buterin, the creator of Ethereum, helped Adams during the creation of Uniswap. Hayden Adams is also an Ethereum developer. It was initially assumed that the Uniswap crypto project would be called Unipeg. However, Buterin suggested using a different name, and in the end it was decided to call the project Uniswap.

UNI token

UNI is governance token Uniswap company. It was released backdated to September 2020. aerodrome. 400 UNI tokens were awarded to every user who used Uniswap to trade tokens or offer liquidity before the token was released. Approximately 150 million tokens were distributed in this way, each portion of 400 tokens was worth $1,200.

Uniswap tokens allow holders to participate in the fair and trustworthy governance of the Uniswap protocol and the entire ecosystem. They can participate in decision-making processes taking into account the Treasury, governance and Uniswap roadmap.

Uniswap claims that the UNI token was developed to officially take Uniswap publicown and self-sustaining infrastructure, while carefully preserving its invulnerability and autonomy.

Any person owning UNI tokens has the right submit a proposal. However, to implement the proposal it is necessary to go through three stages. These stages include:

• Temperature check. Suggest a potential change and add a link to the corresponding Snapshot survey. To be eligible for the second stage, the initiator must receive 25,000 votes in 2 days.
• Consensus check. Creating a new snapshot pool after making some changes based on the temperature check step. To pass this stage, you must collect at least 50,000 votes in favor.
• Management proposal. Writing offer code. Voting for the code is carried out through the Management Portal. However, at this stage you need to have at least 2.5 million UNI coins. The proposal must undergo a seven-day vote.

Since UNI is an ERC-20 token, it can be stored in any wallet that is compatible with Ethereum-based tokens. Wallets that can store UNI tokens include: Ledger Nano S, MetaMask, Binance walletand so on.

Liquidity mining used to be a way to get free UNI tokens. However, this opportunity was only available for a short period of time and ended in November 2020. As such, any advertised online airdrop will almost certainly be a scam, as there are currently no known ways to obtain free UNI tokens. They can only be purchased on various crypto exchanges.

However, be sure to analyze the Uniswap price chart above before purchasing. Please remember that the price of UNI, like the prices of most crypto tokens, is subject to change. This is because the same internal or external factors that affect the entire cryptocurrency market also affect the price of Uniswap tokens.

UNI Tokenomics

The maximum supply of UNI is 1 billion tokens. Circulating supply is expected to peak by 2024, after which An annual inflation rate of 2% will apply. This means that, unlike Bitcoin, UNI is not a scarce asset. As a result, the price of UNI may fall if demand for it does not rise to match supply.

The majority of UNI coins (60%) are distributed among members of the Uniswap community. The remainder is distributed among team members, investors and consultants. However, payments to members, investors and consultants will be made over a four-year period. vesting period.