Uniswap price (UNI)
About Uniswap (UNI)
If you’re a crypto enthusiast, chances are good that you have heard of DeFi or decentralized finance. In simple words, decentralized finance is a novel financial system that operates independently without the need for a trusted intermediary. The concept aims to bring us one step closer to cryptocurrency’s promise of disrupting the financial sector by making money and payments accessible to everyone across the globe without the need of a middleman like banks or brokerages. Uniswap is one of the biggest names right now in the sea of DeFi projects.
What is a Uniswap?
Uniswap is a leading decentralized crypto exchange that operates on the Ethereum blockchain. It is arguably the most popular decentralized exchange (DEX), and this is largely because of the recent surge in popularity of decentralized finance.
Specifically, Uniswap is a protocol that allows buyers and sellers to trade ERC-20 tokens in a trustless and permissionless manner. In other words, you can exchange tokens without platform fees or middlemen.
To understand what Uniswap is about, you need to first get a picture of how DeFi is the opposite of centralized exchanges, which have been the backbone of the cryptocurrency markets for years. As you probably know, a significant volume of crypto trading takes place on centralized exchanges like Coinbase, Binance, and Kraken. These platforms are great because they offer fast settlement time and continually improving liquidity.
The challenge with centralized challenges is that they are governed by a single authority, which defeats the original purpose of cryptocurrency of payments without middlemen. These exchanges require users to place funds under their control and use a traditional order book system to facilitate trading.
Decentralized exchanges like Uniswap were designed to run as a different type of exchange in that it is truly decentralized – no single entity owns it. As a result, there is no listing process and users don’t have to pay listing fees.
How Uniswap works?
What makes Uniswap unique is that it ditches the traditional order book model and introduces an automated market maker (AMM) protocol. AMM is a smart contract that manages the Uniswap pools that provide the tokens, which are used to effectuate a trade. The pools are funded by liquidity providers and the automated liquidity protocol pairs every token against ETH.
Pool tokens are created whenever funds are deposited into the pool, and these can be freely exchanged, moved, or used in other DApps. When funds are claimed, the pool tokens are destroyed. Each pool represents a user’s share of the pool’s total assets and share of the pool’s 0.3 percent trading fee.
Where can you buy Uniswap?
If you’re looking to buy Uniswap, you can do that on different crypto exchanges:
- Binance: When you buy Uniswap on Binance, you will be benefitting from the lower exchange fees than competing exchanges.
- Kraken: This is another reputable name in the cryptocurrency exchanges, offering an extensive selection of assets to trade, including Uniswap.
- Coinbase: Coinbase is a reputable platform you can purchase Uniswap from, but the fees vary based on your country and payment method.
Uniswap is a unique platform built on top of the Ethereum blockchain, the world’s largest cryptocurrency project by market capitalization. If you’re looking to buy Uniswap, the platforms above are some of the best crypto exchanges you can buy from.