Uniswap FAQs

Uniswap, the first-ever decentralized exchange initially launched by a college dropout, is now one of the leading platforms in the world. Establishing a new ecosystem for decentralized apps (dApps), the Uniswap platform continues to grow and develop into the future.

Here are some of the top questions about Uniswap we’ve pulled from around the web.

What is Uniswap?

Source: Uniswap.org

No one would have predicted trade volumes on blockchain projects to exceed the GDP (trade volume) of developed nations like Singapore. However, it’s become a recurring trend for decentralized protocols (DP’s) to reach over CAD $400 billion in trade volume. 

Uniswap is just one example of this.

Uniswap is an Ethereum-based decentralized exchange created by Uniswap Contract Development LLP, a company formed by several members of the Dutch Ethereum community. 

Inspired by a blog post from Vitalik himself, it was the first decentralized exchange (DEX) in the market, officially commencing trading on its platform in November 2018. Uniswap’s platform addresses the challenge most decentralized exchanges have with converting between tokens. 

Uniswap offers users a way to trade tokens without commissions or annoying spreads. In contrast to other decentralized exchanges in the market, Uniswap also has a built-in mechanism that allows users to trade any tokens instantly while maintaining full custody of their funds.

The project aims to tackle some of the most challenging issues confronting the cryptocurrency market. Its decentralized structure helps to eliminate centralized power and control, often seen in other financial institutions. Furthermore, Uniswap plays a vital role in allowing new firms access to global liquidity.

What is the Native Token of Uniswap?

The Uniswap platform has one native token called UNI. This token enables users to pay for services when needed. Unlike other exchanges, Uniswap charges no listing or brokerage fees. Instead, it takes a small percentage on each transaction.

How Do The Tokenomics of Uniswap Work?

Source: https://uniswap.org/blog/uni

UNI is a multi-purpose blockchain designed to serve as a decentralized exchange for different Ethereum-based asset types. UNI tokens initially launched in 2020 and have been distributed among the community. 

In total, one billion UNI tokens have been generated, with 60% set aside over four years for Uniswap. 

Approximately 15% have been airdropped to those who used the Uniswap platform at some point in the past. Each user received 400 UNI tokens valued at around CAD $1000 at the time of the airdrop.

Liquidity

Using Uniswap, any project may create a liquidity pool. The only thing required of a developer to start the pool is to submit their project token and an equivalent amount of ETH. This open approach allows new projects to put their tokens directly into circulation and gain a larger audience.

The additional liquidity aids in the mitigation of order-book exchanges’ high spreads for illiquid assets. In addition, new initiatives can contribute to liquidity pools and build investor confidence in the project while also providing arbitrage trading opportunities.

Liquidity Provider (LP) Rewards

Users of the Uniswap decentralized exchange may act as liquidity providers and earn rewards from trading fees. According to their share in the pool, a portion of trading fees is dispersed among liquidity providers. Thus, everyday folks can earn money without giving up control of their assets.

How Many Uniswap Tokens are in Circulation?

Source: https://coinmarketcap.com/currencies/uniswap/

One billion UNI tokens exist, and no more will ever be released. The current circulating supply of Uniswap is roughly 628 million UNI as of November 2021.

The community speculates price reaches $100 as trade volume doubles before the end of 2022.

Why is it appealing?

Uniswap is appealing for the following reasons: 

Security

Being an open-source project, Uniswap has been subject to a rigorous examination by the development community. As a result, the platform is non-custodial, and the smart contract code is secure to date. 

Compatibility

Uniswap adheres to the ERC-20 token standard (Ethereum) and is compatible with ERC-20 tokens. The platform also supports third-party API integrations, which allows investors to utilize outside tools in their trading techniques. In addition, numerous third-party interfaces, trading bots, and market management tools are available to enhance Uniswap’s user experience.

Flash Loans

Uniswap 2.0 includes Flash loans, which allow a user to borrow up to the total liquidity available, as long as it is returned in the same transaction. So yes, you can borrow and repay the loan in one transaction. 

What Wallets Support Uniswap?

Being an ERC-20 token, Uniswap is compatible with any Ethereum wallet that supports the standard. This includes MyEtherWallet, ImToken, MetaMask, Mist, Parity, and Trust Wallet.

Community Support/Social Media 

Community

Social Media

Where Can I Buy Uniswap?

You can buy Uniswap on Coinberry by signing up for an account here.

Additional Resources

Want to learn more about Uniswap? You’re in luck! We have additional content here that tells you all about this unique and exciting project.