What is Uniswap?
Uniswap is an automated market maker (AMM) decentralized exchange built on the Ethereum blockchain. The Uniswap protocol is composed of a chain of smart contracts that hold trading pairs, allowing users to buy or sell any ERC-20 token.
Main roles in Uniswap
Users can join Uniswap with the following roles:
- Liquidity Providers (LP): create new liquidity pools, provide liquidity to pools, withdraw tokens from the reserves they have contributed liquidity.
- Traders: exchange between 02 tokens and pay the transaction fee which will then be transferred to the reserve of that trading pair.
- Arbitrageurs: profit from the price difference between exchanges.
Uniswap operating model
Most exchanges (both centralized and decentralized) are operating on an order book model. However, Uniswap uses liquidity pool model. The value of a token is determined by the ratio of that token to the other token in the pool. After each swap order is executed, the value of the pool will be changed.
In addition, the price of a token on Uniswap is checked by arbitrage. For example, if a token is undervalued, an arbitrageur can buy it and sell it for a profit on another exchange until the price is balanced out.
Difference between Uniswap v1 and Uniswap v2
Uniswap v1 only offers ERC-20 network pools with ETH. Uniswap v2 offers a wider variety of trading pairs, helping to reduce gas fees, liquidity fees, and slippage, thereby increasing trading efficiency for users.
In addition, Uniswap v2 also has a protocol switch feature, allowing UNI holders to collect 0.05% conversion fee or 0.25% if you are a liquidity provider.
Token UNI
UNI is the electronic currency of Uniswap Protocol, which has the following functions:
- Governance: UNI holders can participate in project governance decisions.
- Switch fee: UNI holders are refunded when exchanging tokens on Uniswap.
- Incentives: UNI is used to reward liquidity providers.
UNI Token Specifications
- Ticker: UNI
- Blockchain: Ethereum
- Token standard: ERC-20
- Total supply: 1,000,000,000 UNI
- Circulating supply: 627,596,088.55 UNI
UNI Token Allocation
- Uniswap community: 60% of total supply
- Development team: 21.51% of total supply
- Investors: 17.8% of total supply
- Advisors: 0.069% of total supply
UNI token Price today
How to buy UNI
Uniswap (UNI) has been listed on Attlas Exchange.
Traders can easily and securely buy UNI with lowest fees on Attlas Exchange.
Step 1: Download the app and register an account
Step 2: Select Market on the toolbar at the main screen
Step 3: Select Spot
Step 4: Find UNI
Step 5: Select Buy
Summary
This article is an overview of Uniswap (UNI), not a financial advice.
Users are advised to do their own research before making any trading decisions.