Uniswap (UNI)

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You can deposit or withdraw UNI from Bitso using the Ethereum (ERC-20) network exclusively. Make sure you choose this network when transferring your coins.

 

What is Uniswap (UNI)?

Uniswap is one of the largest decentralized trading platforms, also known as a decentralized exchange (DEX). It is an Ethereum-based DEX that allows users to swap ERC-20 tokens. Launched in November 2018, Uniswap set out with the goal of providing Automatic Market Maker (AMM) services to Defi tokens. In other words, Uniswap’s goal is to make trading more automated and easier for end-users while keeping its services available to everyone who owns an ERC-20 token. Its main purpose is to provide liquidity to make trading faster, safer, and more user-friendly. UNI is Uniswap’s governance token, which allows its holders to take an active role in the protocol’s future.

 

What makes it unique?

  • Uniswap is one of the largest AMMs in DeFi; 

  • UNI token holders get to take part in Uniswap DAO decision-making. For example: votes on how the $1.6B treasury should be used;

  • Attempts to solve the issue of liquidity among DEXes by allowing the exchange to swap tokens without the need for a buyer and a seller;

  • Designed to serve as a public good: a platform for users to swap tokens with no fees or middlemen;

  • UNI supply is capped at 1 Billion tokens, after which a 2% “perpetual inflation rate” will be set to promote the continued use of the network, disincentivizing passive holders;

  • UNI will reach the 1 Billion token mark by September 2024;

  • In February 2021, Uniswap became the first DEX to process $100B in trading volume.

 

Purpose

Uniswap serves the purpose of allowing anyone to swap any two ERC-20 tokens. If the liquidity pool for those tokens doesn’t exist, it’s very easy to create one. Users are rewarded for providing liquidity by earning a fee of 0.3%. One of the biggest attractive qualities for many, Uniswap requires no background check (KYC) for creating an account. All you need to start swapping is to own an ERC-20 token.

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