Uniswap is a decentralized exchange (DEX) where you can swap your crypto. (example from ETH to DAI)
✅ Active community
✅ Active team
✅ Billions $$ of liquidity
✅ Decentralized, DAO.
Why Use Uniswap? 🤔
- Swap between any crypto assets, with a fixed fee, no matter the amount $$.
- Anyone can provide liquidity to pools, which makes Uniswap possible, and decentralized.
- Liquidity providers make a % every time someone swaps crypto assets using their pool.
Why Decentralized Exchanges? 🤔
- Coinbase is a company. Coinbase needs to make money. They charge % of sales / buys.
- Uniswap is owned by the people.
- Selling $30k worth of ETH on Coinbase will cost you $500.
- Selling $30k of ETH for USDC on Uniswap costs $10-$50 (depending on gas)
- Swap any amount for only the price of the gas fee.
How Does It Work?
- Every pair (ex : ETH / USDC) has a community pool.
- Anybody can provide ETH & USDC into the ETH/USDC pool.
- This gives liquidity to the people and allows swaps between the pair.
- Those that provide liquidity to any pool, get rewarded swap fees every swap.
What Is The UNI Token Used For?
- Voting power in the Uniswap DAO.
- With the biggest treasury in DeFi, ($6 billion+), voting power that controls this huge sum can be valuable.
What Are The Risks Of Using Uniswap?
- Bugs, exploits are always possible.
- As a swapper, not many risks at all. (except for slippage)
- As a liquidity provider, impermanent loss is always at play.
WTF is "impermanent loss"? 👇
WTF is "slippage"? 👇
- Low slippage, meaning less likely to not execute your trade at your desired price(s).