Owning the unicorn as the official logo, Uniswap emerged to dominate the decentralized exchange market (DED) on the Ethereum network with the first record of over $ 100 billion.
Uniswap is a centralized exchange protocol built on Ethereum in 2018, focusing on ERC20 token conversion.
Featuring automated liquidity protocol features, Uniswap allows its users to trade without hindrance with high decentralization and filtering features.
Interestingly, any type of token can be loaded into Uniswap by paying the equivalent value of ETH and ERC20 tokens traded.
For example, if you want to exchange Durian tokens (DRN), you need to launch a new Uniswap smart contract and build a liquidity pool with DRN and ETH which are worth $ 10 each. By using ETH you can convert directly to DRN with the same value.
Yes, that's right. Durian tokens really do exist!
Generally, what Uniswap does is balance the value of the token and convert it based on how many investors want to buy and sell it.
Uniswap has a native token, UNI. Its holders are entitled to vote on new developments and, changes to the platform and fee structure, including how many tokens should be distributed to the community and its developers.
Created in September 2020, 1 billion UNIs have been distributed to 150 million Uniswap platform users. Each received 400 UNI tokens which at that time were worth over $ 1,000.
UNI tokens can also be considered Uniswap's response to the rising SushiSwap protocol. In the DEX sector competition, SushiSwap is seen as a fierce competitor who tries to cripple Uniswap through a process known as ‘vampire mining’.
Many more Uniswap projects actually. Among other things, the launch of Uniswap V2 in May 2020, one of the biggest improvements made to allow the conversion of ERC20 to ERC20 directly and support previously incompatible ERC20 tokens such as OmiseGo (OMG) and Tether (USDT).
Most recently, the launch of Unisocks (SOCKS), a token based on a pair of socks around the beginning of February. Uniswap is also planning with an upgrade to the Uniswap V3.
So far there is still no certainty, but of course the Uniswap community is looking forward to the latest profitable updates!
