Uniswap is an important decentralized trading protocol that facilitates automated trading of DeFi Tokens. In this article, as Kriptokoin.com, “What is Uniswap?” We will answer the question. In addition to these, we will touch on all the questions about the project.
What is Uniswap? What does UNI do?
UNI is defined as Uniswap’s governance Token. The platform is a crypto-asset that needs an ETH network to work and is based on an ERC-20 Token. It is also a virtual currency that has managed to attract attention with its functional features as a governance Token for UNI.
What is the purpose of the UNI project?
The most important element in the emergence of the UNI project; Its goal is to facilitate the trading of DeFi assets. The project, which emerged as an example of automated AMM, aims to increase efficiency in Token trading, automate transactions and become a platform open to everyone who owns Tokens, unlike traditional exchanges, as stated in its roadmap and whitepaper. Uniswap took its place in the market in November 2018, gaining its real strength with the increasing interest in DeFi recently.
What makes the project unique?
- It is a protocol that actively offers especially AMM solutions.
- It works with the formula “X * Y = K” developed for autonomous exchanges.
- It is not only a decentralized exchange, but also a protocol that solves the liquidity problems of platforms such as EtherDelta.
- It automates the market making process and limits risk. It is also a feature that highlights the fact that it encourages efficiency by reducing costs for all parties.
- The platform can create liquidity pools for each Token pair.
What are the advantages?
- The platform has growing networks of DeFi applications.
- A very strong and secure administration is provided by the communities.
- It also facilitates trading of DeFi Tokens.
What are the disadvantages?
- The platform may have security problems that can cause other smart contracts DeFi traders to lose money.
- UNI is seen as risky as it experiences sharp price fluctuations with market movements.
What is Uniswap? How to buy UNI?
Exchanges that can be traded with UNI; Binance is OKEx, Coinbase Pro, Gate.io and FTX. To purchase coins, these steps are followed:
First of all, access the web/mobile application of the exchange that lists the UNI you have chosen as the first step. Then complete the account opening steps of the exchange. Complete the next step, the authentication and approval process. Follow the steps of the exchange, which is the next step, to deposit funds. As the last step, choose UNI with the balance amount you want and create a purchase order. Store it in your trusted accounts.
