The Uniswap (UNI) token is now listed on the CEX.IO exchange.
Those of you who participated in the recent Uniswap airdrop can now deposit your UNI tokens to CEX.IO and trade the UNI/USD, UNI/USDT, and UNI/ETH pairs. You can also instantly buy Uniswap (UNI) with your debit/credit card on the Buy/Sell page of the CEX.IO website or exchange it in the CEX.IO mobile app. UNI withdrawals are also available via both channels!
Special offer for market makers
CEX.IO pays you for adding Uniswap (UNI) liquidity. The maker fee for the UNI/USD, UNI/USDT, and UNI/ETH pairs is negative (-0.15%)! So instead of paying up to 0.16% in trading fees, you’ll get a bonus of 0.15% to your CEX.IO balance.
The taker fee is 0.25% for all UNI pairs.
About the Uniswap protocol and UNI token
Uniswap is an automated decentralized exchange protocol created on the Ethereum blockchain. It offers non-custodial trading of ERC-20 tokens.
Uniswap has two major features:
- Swap allows users to convert Ethereum (ETH) into different ERC-20 tokens (and vice versa).
- Pool allows users to earn through providing liquidity. Anyone can deposit tokens into a smart contract and receive pool tokens in return.
Uniswap (UNI) is an ERC-20 token. It’s the native governance token of the Uniswap protocol. UNI allows developers, liquidity providers, and traders to take part in an open financial marketplace.
What problem does Uniswap solve?
The Uniswap protocol is made up of smart contracts that hold token pairs. This makes it possible for users to swap any ERC-20 token in the blockchain.
In Uniswap, users can convert tokens, add them to liquidity pools to earn fees, or list new tokens on-chain. All hese actions cost gas fees. So, Uniswap has become one of the most significant gas contributors on the Ethereum network.
Uniswap is compatible with any ERC-20 token. Due to this, it’s easier and faster to add a new coin to the platform compared to traditional crypto exchanges. Once a new token is listed, it’s possible to exchange it for any supported token. Yet, the simplicity of coin listing also attracts bad actors who list fake coins. Uniswap users need to be extra careful in this respect.
What is the innovation?
Uniswap has a unique Automated Market Maker (AMM) system. At its core, pools composed of two ERC-20 tokens provides the liquidity.
In Uniswap liquidity pools, the price of an asset is formed by the ratio of one token to another in a pool. Every user can become a liquidity provider for a Uniswap pool. You just need to deposit the equal value of each underlying token. Liquidity providers receive swap fees that traders pay for token conversion.
In fact, the price of an asset pair changes through trading only. Tokens’ prices in the Uniswap network and external exchange platforms are different. This creates arbitrage opportunities. Moreover, this mechanism makes prices on the Uniswap tend toward the market average.
There are three primary parties in the Uniswap network:
- Liquidity Providers (LPs) add assets to Uniswap pools. They are able to create new pools and add liquidity to existing ones.
- Traders exchange tokens and pay swap fees.
- Arbitrageurs track price deviations vis-à-vis other exchange platforms to make a profit.
The community can use Uniswap (UNI) tokens to vote for network changes and upgrades ( such as strategic partnerships, additional liquidity pools, etc.). UNI holders are also responsible for ensuring that governance decisions are made in compliance with applicable laws and regulations.
According to the team behind Uniswap, since its launch, the protocol has:
- supported over $20 billion in trades by over 250,000 unique addresses
- secured over $1 billion in liquidity deposited by over 49,000 unique liquidity providers (LPs)
- emerged as a foundational DeFi infrastructure, with integrations across hundreds of interfaces and applications
Discuss Uniswap (UNI) in our Telegram groups
Note: Please be aware that Uniswap (UNI) is currently available for non-US residents only.
Disclaimer: The above content is for informational purposes only. You should not construe any such information or other materials as legal, tax, investment, financial, or other advice. Please study assets on your own before making any investment or trading decisions