Uniswap is an open-source decentralized exchange (DEX) platform built on the Ethereum network and allows buyers and sellers to exchange ERC-20 tokens without having to use other intermediaries. The Uniswap protocol was launched in 2018 by Hayden Adams. However, the underlying technology and its first true adoption of Ethereum was Vitalik Buterin.
Uniswap can be said to be like an automatic liquidity protocol in which no centralized order book or party is required to make trades.
Then, how does trading occur if there is no order book?
Well, in fact, Uniswap provides a liquidity solution so that they can lend their ERC-20 tokens to a special reserve called a liquidity pool. So, Uniswap does not need an order book to make buying and selling.
As an imbalance for Liquidity Providers who provide tokens to this liquidity pool, Liquidity Providers will receive a percentage of trading fees from swap transactions conducted by Uniswap users.
Apart from having a decentralized nature that provides access to the crypto market, the advantage of Uniswap is that it allows everyone to access without having to register or log into the market. Users only need to connect a smart wallet to immediately carry out crypto trading activities.
Another advantage of Uniswap also includes aspects such as new tokens which can be directly accessed by adding their tokens to the exchange with the Uniswap V2 Router Contract. In addition, another advantage is that these liquidity providers can make a profit by simply putting their funds into the liquidity pool.
The Uniswap protocol has its own token called UNI. UNI gives rights to its holders of governance rights. This right allows UNI holders to vote or vote on the change protocol at Uniswap.
As of this video, there are around 246 million UNI tokens that have made sense in the world. The targeted number of UNI tokens reaches up to 1 billion tokens. For that, Indodax is here as a place for traders who want to have UNI easily and quickly. Want to have UNI? Come on, buy now at indodax.com and don’t forget to subscribe to our YouTube channel!