What is Uniswap?

To answer the questions like what is Uniswap and what is Uniswap classic, we should explain that Uniswap is an automated liquidity protocol and one of the most popular decentralized exchanges (DEX), which has gained a reputation for its popularity due to its growing popularity. Ethereum Uniswap is based on the Ethereum network, which can be used for automatic exchange between Ethereum and ERC20 tokens. Users can also become a provider of liquidity in that protocol pool by depositing equivalent amounts of cryptocurrency pairs in the pools of this protocol and receive rewards in return.

UNI Token

UNI is a native token of the Uniswap protocol and allows users to own the platform. In other words, the holders of this cryptocurrency, depending on their share, share in the exchange office and have the right to vote to make changes or add new capabilities and this an important key for solving puzzles of what is Uniswap and what is Uniswap classic. We have already mentioned the generality of Ethereum Uniswap and the possibility of using it for free for everyone. The UNI currency code reinforces this idea.

At birth, 1 billion Uniswap tokens were generated. Nearly 60 percent of the current members of the platform community were distributed, and the rest will be available to team members, investors, and consultants over the next four years. Part of the distribution of society occurs through the extraction of liquidity. 

Any Ethereum address that interacts with Ethereum Uniswap contracts will be considered a member. It is worth mentioning that at the time of writing, the price of each unit of this token is $ 30.11. On the other hand, if you use Ethereum Uniswap, you will probably get 400 tokens for each address through which you communicate with this protocol.

Uniswap History

Hayden Adams created the Ethereum Uniswap protocol in 2018, but the development-inspired infrastructure technology was first introduced by Ethereum creator Vitalik Buterin. Not bad to know Hayden Adams is one of the developers of Ethereum which that was the first step in the Uniswap history. The Ethereum Foundation provided him with $ 100,000 in funding to build a team of about ten members to build a decentralized exchange with new and different features.

Uniswap started its activity in the 11th month of 2018 and in less than two years, it attracted a lot of attention. In the fifth month of 2019, the Ethereum Uniswap development team raised $ 1 million through the support of the Paradigm Risk Coverage Fund. This event paved the way for the release of the second version of Uniswap in the sixth month of 2020 (thirteen months later).

About Uniswap

Uniswap exchange architecture is different from traditional exchanges; Most traditional exchanges match buyers and sellers using an order book, but the protocol uses liquidity pools to facilitate the exchange of digital assets. The reserves in exchange contracts are provided by a network of Liquidity Providers.

These liquidity providers deposit the equivalent amount of ether and one ERC20 token or two ERC20 tokens to the relevant exchange contract. The first supplier sets the exchange rate and if this rate is not appropriate, other traders gradually correct it. All subsequent liquidity providers deposit and trade using the exchange rate created and that is a important thing about Uniswap.

Ethereum Uniswap also uses Liquidity Tokens (or LP Tokens for short), which are in line with ERC20 tokens deposited in the pool. LP tokens indicate the participation of a liquidity supplier in an exchange contract. The purpose of this is to encourage Liquidity Providers to integrate their reserves into the pool so that all reserves become a single reserve.

Liquidity providers can sell or send liquidity tokens between accounts and do not have to withdraw liquidity from the exchange contract. Of course, these liquidity tokens are strictly specific to an exchange contract. Liquidity providers receive a share of the transaction fee after the transaction, instead of what they do.

Ethereum Uniswap consists of two types of smart contracts called exchange contracts and factory contracts. These contracts are written in the Vyper programming language. Each exchange contract supports exactly one of the ERC20 tokens, and each contract supports a backup of Ethereum and ERC20 tokens.

Trades created on an exchange contract allow direct trading of one ERC20 token to another ERC20 token through Ethereum. Using the factory contract, a new exchange contract can be installed. Therefore, any ERC20 token that does not yet have an exchange contract can be generated using the factory contract. The factory contract can be used to search for all tokens and exchange addresses added to the system.

What is Uniswap used for?

For explain that what is Uniswap used for, we should note that the main difference between Uniswap and other decentralized exchanges is the use of a pricing mechanism called the Constant Product Market Maker Model. Each token can be added to Ethereum Uniswap by providing credit with the equivalent value of ether and traded ERC20 tokens. For example, if you want to exchange an altcoin for a token called a Durian token, you create a new smart Uniswap contract for the Dorian token and a $ 10 Dorian token and $ 10 liquidity pool.

Ethereum Uniswap cryptocurrency has significant benefits for users and the market as a whole, and thanks to its open nature and simple user interface, it has become one of the most popular digital currencies in the world of cryptocurrencies. Also, transactions in Ethereum Uniswap are done in a very simple and basic way; All transactions are done with a few simple clicks, and thanks to its special features, the whole network is very flexible.

On the other hand, one of the most important advantages of Uniswap cryptocurrency is that this currency has both Ethereum network support and Ethereum Uniswap exchange support, which provide two opportunities for tremendous growth for this cryptocurrency. The high speed and security of the Ethereum network can make trading this currency much easier.

Also, as the Ethereum Uniswap exchange is becoming popular among cryptocurrency enthusiasts today, this could affect the growth of the UniUniswap-swap cryptocurrency.

What is Uniswap Mining?

To understanding that what is Uniswap mining, you should know that the Ethereum Uniswap tokens can be mined, but to mining them you must provide liquidity in four pools: Ethereum/ Tether, Ethereum / USDC, Ethereum / Dai, and Ethereum / WBTC. Of course, another condition for Uniswap mining is that each Ethereum address must interact with intelligent Uniswap contracts.

What is Uniswap Staking?

To understand that what is Uniswap staking, you should know that the Uniswap also allows users to get rewards by a staking process. This activity is often referred to as yield farming. Ethereum Uniswap Staking is the core of the popular DeFi projects. By participating in yield farming cryptocurrency holders can earn passive income on the Ethereum network. It is quite similar to a regular Proof of Stake model, which involves users locking up their cryptocurrencies to get rewards.

There will be a total of 500,000 LTO (0.19 LTO / Block) tokens distributed to stakers, reward distribution will start in block 11321000 on the Ethereum network. It is possible to stake your tokens before block 11321000, you will automatically get rewarded once block 11321000 gets mined. No new tokens get minted. Instead of minting tokens on every block (like SUSHI), our tokens are distributed from our liquidity wallet. The total supply LTO will not increase.

Uniswap Price

One of the important elements of the Ethereum Uniswap platform is how to determine the price of each token and this element helps us to know more about the Uniswap price history. Uniswap uses an automated market-making system instead of using a system in which the price of each asset is determined by the highest price of the buyer and the lowest price of the seller.

This alternative method uses a mathematical equation to adjust the price of an asset based on its supply and demand, and the system works by increasing and decreasing the price of coins, depending on the number of coins in the pool.

It is important to note that whenever anyone adds an ERC-20 token to Ethereum Uniswap, that person must add a certain amount of the selected ERC-20 token and an equal amount of another ERC-20 token to start saving cash. The equation for determining the price of each token is X * Y = K. In this equation, X is the value of token A and Y is the value of token B, and K is a constant value.

About the Uniswap value history, we should note that at the time of writing, the Ethereum Uniswap rate is $ 29.90 and the daily trading volume is 1,549,625,140. This cryptocurrency has decreased by 13.06% in the last 24 hours and this cryptocurrency is ranked 12th in the Coin Market Cap site ranking which show us the clear landscape about the Uniswap value history.

This cryptocurrency reached its ATH after a steady trend in February 2021. After examining the price trend of this cryptocurrency, we will talk more about how to buy this cryptocurrency.