What Is Uniswap

What is Uniswap? It is a decentralised exchange, otherwise known as a DEX. This allows anyone to make Ethereum (ERC-20) based transactions without a central body such as a traditional exchange involved. 

ERC-20 tokens are crypto based projects built on the Ethereum platform. Some of the most famous projects include Tether and Chainlink. 30,731 token pairs are currently listed on Uniswap, which is testament to its all encompassing nature. 

Uniswap is built on the Ethereum blockchain using smart contracts and uses automated market makers with liquidity pools. In this case the liquidity pools are both ETH and ERC-20 tokens. People who contribute liquidity (add ETH or ERC-20 tokens to Uniswap), are rewarded with a liquidity provider reward fee proportionate to their liquidity pool contribution. 

How do I use Uniswap? 

The simplest way to use Uniswap is to connect a Metamask wallet and fund that wallet with Ethereum. Metamask is an online cryptocurrency wallet that works as a browser extension (such as with Google Chrome). 

Once you have funded your wallet with Ethereum, simply go to Uniswap and click the pink ‘use Uniswap’ button in the top right-hand corner. 

The next screen will show your options for swapping your Metamask Ethereum balance with any ERC-20 token.  It is important to remember that you should check the contract address of ERC-20 tokens to make sure that they are not fake or scam tokens. Once you are happy and you have confirmed swap, the new token balance will show up in your Metamask wallet. 

Uniswap Homepage

What is Uni Token? 

Uni token is a governance token, this means that holders of the token have a say in how Uni as a company is managed. 

Current Price & Circulation 

Each Uniswap token is currently priced at $33.05 (9th March 2021) with a fully diluted market capitalisation of over $33,000,000,000. The total circulating supply is 1 billion tokens. 

Its all time high price was $34.87 (March 8th 2021) 

Trivia 

  • Despite only recently launching, Uniswap is now the biggest decentralised exchange (DEX) in the crypto universe. 
  • The Unitoken contract address starts with 1f984 – this is the code for the famous Unicorn Emoji! 
  • Uniswap Labs have created Unisocks (SOCKS). These are real socks that are limited edition (a total of 500 pairs) and dynamically prices. This means that for every SOCKS sold it increases the price of the next. Currently the price of one pair of socks is $122,362.12 with only 11 pairs left available! 

Conclusion 

Uniswap is an excellent way to easily gain access to all ERC-20 tokens available in the crypto world. 

If you are looking to purchase some Ethereum, look no further than our best crypto exchanges page.