Uniswap (UNI) — an open source protocol and non-custodial crypto exchange that allows you to exchange Ethereum (ETH) and ERC-20 tokens without using the traditional order book model.
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About the Uniswap (UNI) project
It appeared in November 2018 but gained significant popularity this year thanks to the DeFi phenomenon and the associated surge in token trading. Uniswap is committed to keeping token trading automation and full openness to anyone who holds tokens, while making trading more efficient than other exchanges.
Uniswap creates more efficiency by solving liquidity problems with automated solutions, avoiding the problems that plagued the first decentralized exchanges. In September 2020, the project went even further by creating and awarding its own UNI governance token to past users of the protocol. This added both the potential for profitability and the ability of users to shape their future, an attractive aspect of decentralized organizations.
What makes the platform unique?
Uniswap exists to create liquidity - and, therefore, trading and the value that trading provides - for the DeFi space. This is not just a decentralized exchange; it is trying to solve the problems that platforms like EtherDelta have had with liquidity.
The benefits of the project are as follows:
| Process | By automating the market creation process, the protocol limits risk and reduces costs for all parties. |
| Requirements | The mechanism also removes user identification requirements, and technically anyone can create a liquidity pool for any pair of tokens. |
| Registration | The platform does not require registration and passing KYC and AML procedures. All you need - an Ethereum wallet like MetaMask. |
Uniswap V2 was launched on November 2, 2018 and introduced new features such as ERC-20 pairs, flash swaps and more. The latest version is Uniswap V3, launched on the mainnet on May 5, 2021. It features greater provider capital efficiency, better execution for traders and improved infrastructure.
Project economics
The total supply of Uniswap's governance token, UNI, - 1 billion units. They will become available within four years, after which Uniswap will introduce a "perpetual inflation rate" of 2% to maintain network participation. The UNI Governance Token is available for trading on major exchanges against other cryptocurrencies, stablecoins, fiat currencies and more. These include:
- Binance;
- Huobi;
- Coinbase Pro.
Also, of course, the Uniswap protocol itself is Uniswap (V2) and Uniswap (V3).