In our commitment to continually broaden our offerings, we are introducing a new project addition - Uniswap.
This article provides a comprehensive overview of Uniswap, its native token, tokenomics, functionalities, and its potential impact on the crypto ecosystem. And at the end, you will learn how to buy UNI tokens.
What Is Uniswap?
The Uniswap Protocol is an open-source protocol that allows for the trading of ERC-20 tokens on Ethereum. Along with trading, it also provides liquidity. It eliminates the trusted intermediaries and kinds of rent extraction that aren't necessary, making it possible for exchange activity to be carried out in a manner that is secure, easily accessible, and effective. Censorship resistance is built into the protocol, which is not upgradeable.
Uniswap is an automated market maker. It is a collection of smart contracts that specify a standard approach to make liquidity pools, supply liquidity, and swap assets. In other words, it is a practical collection of smart contracts.
Every single liquidity pool consists of two assets. The pools maintain a record of the aggregate liquidity reserves and the pre-defined pricing strategies that liquidity providers have established. When someone trades, the accounts and prices are automatically changed to reflect the new information. Not only is there no central order book, but there is also no third-party custody and no private order matching engine.
As a result of the fact that reserves are automatically rebalanced after each trade, a Uniswap pool can always be utilized to purchase or sell a token. It is decentralized so in contrast to traditional exchanges, traders do not need to match with particular counterparties to make a deal.
How Does Uniswap Work?
A wide variety of digital assets can be traded decentralized using the Uniswap platform. It uses smart contracts based on blockchain technology. Using smart contracts, liquidity pools can automatically rebalance themselves after each transaction. This allows for the trading of digital asset pairs.
Every day, the Uniswap blockchain, similar to an electronic ledger, is updated to reflect the trading activity taking place among users of the Uniswap platform. The Uniswap platform is an automated market maker since it operates as an exchange without the involvement of any central authority.
The Ethereum platform, which is currently running utilizing the proof-of-stake mechanism, is the one Uniswap employs to conduct its operations.
Overview of UNI Tokens
What Is UNI?
On September 17, 2020, Uniswap distributed its governance token, which was referred to as UNI. There was no initial coin offering (ICO) or token sale offered by Uniswap. Users can buy UNI from many trusted exchanges, including CoinEx. Users can also acquire UNI tokens by staking tokens in the liquidity pools Uniswap offers.
Applications of UNI
Uniswap protocol is governed by the UNI token. It is possible for holders of UNI who own 1% or more of the total supply of UNI to submit development suggestions. Furthermore, regardless of the amount of UNI they have, every UNI holder can vote on these proposals. Holders of UNI can also contribute to funding grants, partnerships, liquidity mining pools, and other initiatives.
Another application of UNI is that it protects the network from dangerous cyber attacks. Uniswap rewards stakers with newly created UNI tokens for participating in this activity.
Over time, the core Uniswap team will be able to step away from decision-making thanks to the way Uniswap governance is set up. An autonomous, decentralized protocol will be developed in this way.
One billion UNI have been minted at Genesis and will become accessible over 4 years. The initial four-year allocation is as follows:
60.00% to Uniswap community members, 600,000,000 UNI
21.51% to team members and future employees with a 4-year vesting of 212,660,000 UNI
17.80% to investors with a 4-year vesting 180,440,000 UNI
0.69% to advisors with 4-year vesting 6,900,000 UNI
How to Buy UNI Tokens on CoinEx?
CoinEx is a global cryptocurrency exchange trusted by 5+ million users worldwide with 100% reserve. Users can now trade quickly and seamlessly with its 700+ tokens supported, including UNI.
To purchase UNI tokens on CoinEx, follow the steps below.
- Create an Account: Start by signing up for a CoinEx account.
- Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
- Navigate to UNI Trading Page: Once your account is funded, go to the dedicated UNI trading page on CoinEx. You can find a search box and enter the term UNI to swiftly locate the trading pair associated with UNI tokens.
- Choose a Trading Pair: Select the desired trading pair that matches UNI with another cryptocurrency. For instance, you may choose UNI/USDT to trade UNI against USDT (Tether).
- Specify the Purchase Amount: Determine the quantity of UNI tokens you want to purchase. Input the amount in the trading interface, which will calculate the corresponding cost based on the current market price.
- Execute the Trade: Execute the trade with the specified amount. Confirm the details, and if you are satisfied, submit the order.
Following these comprehensive steps, you can easily trade UNI tokens on CoinEx using the available trading pairs.