Uniswap (UNI) Research

Uniswap (UNI) Research Details

Uniswap (UNI) Uniswap

INTRODUCTION

Uniswap is a blockchain network that operates on the Ethereum blockchain, which allows users to exchange cryptocurrency tokens in a split way. Traders can exchange Ethereum tokens and Ethereum-based tokens at Uniswap without trusting any party for its money. Users can also borrow their tokens from Uniswap liquidity pools and earn money in exchange.

With this new model, Uniswap has emerged as one of the leading players in the Decentralized Finance (DeFi) movement.


HISTORY AND FOUNDER

Uniswap was born in a vision proposed in 2016 by Vitalik Buterin for a decentralized exchange (DEX) that would hire an automatic on-chain market maker with some unique features. A year later Hayden Adams began working on transforming the idea into a practical product. After receiving several grants and $ 100,000 from the Ethereum Foundation, Uniswap launched in November 2018.

Uniswap also adapts with all ERC-20 tokens, a standard used to create smart contracts on Ethereum. The Uniswap token, UNI, is a traditional Uniswap governance token. UNI was not launched until 2020, and it plays a key role in the Uniswap network.


REASON TO BUILD THE PROJECT

UNI was established in September 2020 as an incentive for people to stay at Uniswap Stadium instead of shifting to SushiSwap, the Uniswap fork, and competing DEX. A month before the release of the UNI token, SushiSwap had encouraged Uniswap users to switch to SushiSwap by rewarding those who did so with SUSHI tokens.

 In response, Uniswap created 1 billion UNI tokens and distributed 150 million UNI to those who used the platform before. Each person received 400 UNIs - which cost about $ 1,400 at the time.


BASE OF PROJECT

Uniswap operates using the Ethereum platform, currently using the proof of work. (Ethereum is slowly switching to using only the proof-of-stake method.) Proof of work requires a lot of computer and power resources, which are used to process transactions and generate new cryptocurrencies.

Uniswap does not have a central party to transact with. They do not use any centralized market makers or order books (a feature of centralized crypto exchanges).

Instead, there is automatic liquidity. The Uniswap model is based on liquidity providers that provide crypto tokens to create liquidity pools.

Liquidity providers provide liquidity by adding pairs of cryptographic tokens to smart contracts that others can buy and sell. In return, the liquidity provider receives a percentage of the transaction fee.


USE CASE

Uniswap is an open-source protocol for the Ethereum blockchain and is one of DeFi's largest trading platforms. This combination offers users and investors a variety of possibilities.

·       From a trading point of view, investors can exchange any number of ERC-20 tokens using smart contracts - so there is no risk of an outside company.

·       Through Uniswap's liquidity protocol, users can also become financial providers. By donating tokens to Uniswap liquidity pools, users can earn rewards while allowing peer-to-peer trading.

·       Users can also trade tokens, or even make and write their own tokens (using the Ethereum ERC-20 token protocol). There are currently hundreds of tokens on Uniswap.

·       UNI ownership also gives users the opportunity to participate in the Uniswap community and vote on proposed platform changes. This is the latest event, as the UNI token was not issued until 2020.


TOKENOMICS

1 billion UNI tokens have been generated. This first offering will be fully cleaned up over the next four years, by the division of labor, as follows.

·       60.00% of Uniswap community members / 600,000,000 UNI.

·       21.51% of team members and future employees with grantof 4 years / 215,101,000 UNI years.

·       17.80% of investors with vesting for 4 years /178,000,000 UNI years.

·       0.069% for 4 year old vesting / 6,899,000 UNI


MAJOR NEWS AND EVENTS

DATE

NEWS/EVENTS

IMPACT

16/11/2021

Twitter’s CFO said in a recent interview that the company would not invest in crypto right now. China continues to set up against cryptocurrencies.

-18% Decrease

19/04/2021

EToro adds Chainlink and Uniswap amid growing crypto investors

+22% Increase


CONCLUSION

Uniswap is a new exchange protocol built into Ethereum. Allows anyone with an Ethereum wallet to exchange tokens without the involvement of any central organization.

Although it has some issues, these technologies can have a positive impact on the future of unreliable token exchanges. Once the Ethereum2.0 scalability solutions are live on the network, Uniswap could benefit from them as well.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.