What is Uniswap Cryptocurrency, and Why is it Useful?
Uniswap plays both as a cryptocurrency and as a decentralised exchange, a dual role in the up-and-coming crypto-space (DEX). Uniswap is a platform which enables users to swap tokens for ERC-20, which may be used to represent a wide range of digital assets and financial values. It is built on the blockchain of Ethereum.
Only currencies generated on the Ethereum (ETH) network are listed on Uniswap exchanges.
Uniswap traders must enter into smart contracts via which they can deposit their crypto assets into pools, which are made up of two ETH-based crypto tokens that reflect the assets put in that pool.
To put it another way, Uniswap is a mechanism for anyone to securely exchange various types of tokens based on the famous Ethereum blockchain without relying on a centralised exchange.
As crypto-holders enter the decentralised financial realm, Uniswap tokens (UNI) participate in the governance of this finance protocol (DeFi). DeFi uses Ethereum blockchains to conduct financial transactions without the usage of central financial intermediaries such as exchanges or centralised online wallets.
As per tech website CoinGecko, Uniswap exchanges support 1,852 different types of coins and 2441 different trading pairs.
UNI tokens, unlike other decentralised exchanges, allow holders to trade in any two ETH-based crypto coins, a process known as a "swap." The move is considered as a more liquid approach to trade big sums of cryptocurrency.
Uniswap tokens (UNI), one of which is now trading for $27.02 (Rs. 1,990) on Monday, make use of a variety of crypto assets that may be traded among traders without the involvement of a central authority.
UNI traders can buy, sell, and hold crypto tokens using credit cards, debit cards, bank transfers, and digital wallets, allowing them greater trading flexibility. Trusted crypto exchange services that offer UNI purchases with reasonable fees and low spreads can facilitate the transactions.
Earlier in July, a report by Economy Watch in July, Uniswap is a popular crypto asset in the United Kingdom. Uniswap has a market capitalisation of $9.4 billion in the UK, with a market share of 0.67 percent.