Swap, earn, and build on the leading decentralized crypto trading protocol.
- Access to all ERC-20 tokens and even new token launches that are not listed on mainstream centralized exchanges.
- Tokens can be added and liquidity pools can be added easily since its a decentralised exchange.
- Allows liquidity providers to earn a passive income.
- Does not require KYC or registration.
- Less expensive to use as it erases middlemen.
- Some lesser known tokens may not have sufficient liquidity to permit a trade.
- Since anybody can add a token, there are many fake copies of popular tokens on Uniswap and a user needs to remain careful and check the contract address before swapping on UniSwap.
Exchange Review
Uniswap is a popular and easy to use decentralized exchange that allows users to quickly swap among Ethereum based ERC-20 tokens. It offers lower fees than centralized exchanges and erases middlemen for the trade. Users can earn a passive income by becoming liquidity providers and can also participate in the future direction of the exchange by voting if they hold the UNI token. It is currently the most popular DEXs for Ethereum based tokens.
However, the exchange offers limited features currently and there are fake versions of some popular tokens operating on the Uniswap exchange. Stronger moderation and governance measures are required to tackle and remove such fake tokens. The exchange needs to branch out into other areas and built its ecosystem but it has chosen to remain focused on being a simple DEX service at present.
History of Uniswap Exchange
Uniswap is an open source decentralised exchange built on the Ethereum network. Uniswap was built and introduced by Uni Labs and has become one of the largest decentralised exchanges in the world. Since its launch, three versions of the Uniswap exchange have been launched improving upon its functionality.
Uniswap supports all Ethereum tokens and does not charge any listing fees making it a popular exchange especially for new tokens.
The native governance token of the exchange is known as UNI.
The exchange charges lower fees of 0.3% as compared to other centralized exchanges. The Uniswap exchange has become very popular and is a strong competitor of other decentralised exchanges such as PancakeSwap and SushiSwap.
Uniswap allows its users to earn additional and passive income by providing liquidity. A user can also vote for various governance proposals by holding the UNI tokens.
Who owns Uniswap?
Uniswap is an open source project founded by Hayden Adams. It is not run on an open source model and has introduced community governance by ensuring voting rights to users holding the native UNI token.
Regulations of Uniswap
Uniswap is a decentralised exchange and does not hold user funds. Decentralised exchanges have been subjected to regulations but largely operate freely in majority of the countries across the world.
What Cryptocurrencies are available on Uniswap?
Uniswap is a decentralised exchange and supports all ERC-20 tokens that run on the Ethereum network. Anybody can add a token and there is no limitation as long as the token runs on the Ethereum network.
It also has a native token called the Uniswap (UNI) token). UNI can be used to vote for governance proposals on the Uniswap network. It can also be used to farm and earn a yield which is a great source of passive income.
What payment methods are available on Uniswap
Uniswap is a decentralised exchange meaning it requires cryptocurrencies for making a swap. Fiat currencies cannot be deposited for trading on the exchange. You will need to purchase cryptocurrencies through a centralized exchange (if you don’t have any) and then use the services offered by Uniswap.
Investment instruments
Uniswap offers a convenient way to swap Ethereum based tokens and also provides additional features for users holding UNI tokens or choosing to provide liquidity.
These services are described below.
Liquidity Providers: Users can chose to add liquidity and earn an additional source of income on Uniswap. Liquidity providers earn a 0.3% fee paid from the trade transaction fees.
Uniswap Grants: Uniswap supports grants for projects and developers building to improve the Uniswap ecosystem. Application for grants can be applied directly on the website and the team gets in touch if it is interesting.
Staking on Exchange
Uniswap allows users to stake currencies through the liquidity pools. Liquidity pools allow users to stake their UNI and other tokens to earn rewards. Its one of the best ways to earn an additional source of passive income.
Voting Activities: Uniswap allows users to vote for governance purposes and is run in a completely decentralised manner where users can vote to decide the future of the platform. Anybody holding a minimum of 2.5 million UNI tokens can introduce a proposal and if it gets the desired majority of votes, the proposal can be implemented.
How to open an account on Uniswap
You do not need to register an account on Uniswap since its a decentralised exchange. You can connect your cryptocurrency wallet and carry out the swap. The tokens will be received in the same wallet. Metamask is one of the most popular wallets for this purpose.
Steps to swap tokens on Uniswap:
- Head to the Uniswap site.
- Click on connect wallet and authorize your wallet such as Metamask when asked. You should already possess some ETH, UNI or other ERC-20 tokens to perform a swap.
- Select the token you possess and wish to exchange for another token.
- From the drop down menu, search and select the token you wish to buy (for example, UNI). The tokens will be received in the same wallet (in this case, Metamask).
Customer support of Uniswap
Unfortunately, Uniswap does not provide customer support. However, users should not face any major issues since its a decentralised exchange but the site has a help centre where users can get answers to majority of the issues that they can face while using Uniswap.
Security of Uniswap
Uniswap has been audited by Consensys Diligence. It has not faced any major security issues till now and frequently updates its governance model.
